Could someone with the knowledge please explain to me how close Bank of America is to falling.

[sarcasmo]

I have been hearing many reports and rumblings of BOA being finished. If one of the biggest banks in America falls, how many smaller banks they own will be squashed at the same time. Trying to alert friends who have their money locked up in BOA checking and savings account. Here is a link to a article yesterday where the Yankees withdrew talks about the new stadium.

http://sports.espn.go.com/mlb/news/story?id=3938458

[ananda]

1. Pretty close, I'd say.

Get ready for a bumpy ride.

[clixtox]

12. The bumpy ride is just about over...

and our reality could be getting a lot uglier and brutish very soon!

Think about diversifying your assets, as the conventional types like real property, equities, bonds, most jewels, even mattress cash, are on the declining portion of their value/price cycles.

The time for owning gold and silver, especially fungible silver like US 90% silver coins, meaning those minted prior to 1964, could actually be at hand!

Unique, original, iconic art is a wealth preserving option for the sophisticated affluent. Pieces that resonate with you, ones you can live with, if chosen carefully, appreciate while being appreciated!

Surely some of the DU cognoscenti were in Paris recently for the YSL auction of art and (stolen)artifacts!

With the clowns in charge of the financial levers inextricably waging the class war, along with their manifest proclivity for catastrophe, extreme caution is required, IMHO.

Do not expect anything except the unexpected!

[GoesTo11]

14. That can't be right

"Unique original iconic art" has no intrinsic value, it's just worth what people are willing to pay for it. And the people who pay for this pay for it with extra money that is well beyond what they need for any necessities. With wealth evaporating, people are going to be less inclined to drop as big a chunk on the next drawing of a tomato soup can. Is there historical precedent? For example, during the depression, did art go up in price or at least hold its value?

[Ilsa]

2. If your friends' accounts are less than the FDIC coverage maximum, tell them not to worry.

There is no need for a "run" on the banks.


The FDIC –short for the Federal Deposit Insurance Corporation - is an independent agency of the United States government. The FDIC protects depositors against the loss of their insured deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.


If a depositor's accounts at one FDIC-insured bank or savings association total $250,000 or less, the deposits are fully insured. A depositor can have more than $250,000 at one insured bank or savings association and still be fully insured provided the accounts meet certain requirements.

This guide describes the FDIC's rules for insurance coverage of bank and savings association deposits and answers frequently asked questions about the FDIC's insurance rules. The guide is intended primarily for depositors who need a comprehensive explanation of the FDIC's rules, including the requirements to qualify for more than $250,000 in insurance coverage.

snip

http://www.fdic.gov/deposit/Deposits/insured/index.html

[sarcasmo]

3. That doesn't pay your bills, how long would it take to get your money back from the Government?

Two- three months I would assume. On edit: The statement full faith and insurance of the United States Government is almost laughable.

[BR_Parkway]

4. Those get transfered immeadiately to a solvent bank and you can

still access your money through checks, ATM's and all - read some of the press releases from when the FDIC takes over a failed bank:

http://www.fdic.gov/bank/individual/failed/banklist.html

actually it's Friday, so more will probably be added to that list today - they normally do it just before the weekend

[sarcasmo]

5. Good to know, Thanks.

[CoffeeCat]

10. I'm wondering if people are really thinking this through...

As you said--Do we really want to bank our entire livelihood on the reliability of the bankrupt and
discombobulated US government?

I sure as hell don't.

Also, there is a DUer who reported that it took 5-6 months to get her money back from the FDIC.

Three to six months without the money in your bank account is foreclosure and starvation for many people.

[sarcasmo]

11. 5-6 Months to get your money, many of us would be homeless.

[CoffeeCat]

9. Are we so sure?

Yes, those accounts are FDIC insured, but take a look around. Everything is crashing. I wouldn't put
full faith in any institution right now---especially the Federal Government. Especially when you are
talking about people's money, and the difference between living and starving out in the streets.

When Washington Mutual failed, there were many articles that discussed the failure. In nearly all of
those articles, buried within the copy--was a short mention of what WaMu's failure did to the FDIC.
In each article, the FDIC was described as having "their resources stretched."

Ok, that was one bank failure, and the FDIC was feeling the pinch.

That report is at least...pause for concern.

Also, there have been a few DUers who have reported that they lost money that was FDIC insured, and it
took them months to get their money back.

How many people have several months--to wait to get reimbursed for the money that was in their savings and
checking accounts?

I'm not trying to cause a "run on the banks". However, acting as if the FDIC is some kind of magical, totally
iron-clad institution that magically gives people their lost money back--is kind of a fairy tale.

People need to be vigilant and prepared. Having no plan--except to rely on the FDIC to save you--doesn't seem
that prudent to me.

People also need to have cash reserves at home. That's just reality.

[madrchsod]

6. there are plenty of solid banks across this country that could use the business

..it`s that what capitalism is all about? competing for business with a better product and customer service than the other guy? at least that`s the way it was when my wife and i had our business...

[notesdev]

7. It would have fallen already

if not for massive government bailouts (plural)

BoA is insolvent, as is the rest of our banking system. The only solvent banks are small ones you probably never heard of.

[Warpy]

8. They've made some epically stupid decisions lately

such as the acquisitions of Countrywide and Merrill Lynch.

However, they're still not as rocky as Citibank is.

It will bear watching, though. They really are risking nationalization along with other banks that threw good money after bad acquiring failed institutions.

[Jeep789]

13. They were fine until those acquisitions were made

I have never understood the logic behind them. And shouldn't those that made the decision be standing in the unemployment lines?

Still, I wouldn't panic. If BOA failed and the feds couldn't pay we'd all be screwed no matter where our money was. Run on the banks is not the answer ... regulation though is a must.