Wachovia faced a ‘silent’ bank run; FDIC forced sale
Fearing a loss of funding over the weekend, the FDIC forced the sale.
By Rick Rothacker and Kerry Hall
Posted: Thursday, Oct. 02, 2008
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Starting Friday morning, Evans said, businesses and institutions with large accounts started withdrawing money to lower their balances to below the federally insured $100,000 limit. They weren’t closing accounts, he said, adding “they were very apologetic in saying they love the service they get from Wachovia and they weren’t leaving Wachovia. They were just moving their money until things settled down.”
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Clearly, for us little guys, you should never have anything close to the FDIC limit.
Even with that, you can’t have all your eggs in one basket.
Paper money is just that paper money. When panics start, they develop a life of their own. Clearly, depending upon one bank is absurd. Even if FDIC comes in and saves “your bank”, I can only imagine the ‘fun’ while things, like deck chairs, get rearranged.
It would seem that us little guys need several banks or credit unions pre-set up and funded, ready to go at a moments notice.
I’d go so far as to suggest that FOUR might not be excessive. With web bill pay, printed checks, and direct deposit all energized ready to go.
Fore warned is Fore armed. “Be prepared” It ain’t just for Boy Scouts.
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