Two US Banks Just Failed – What Happened, and What Now?
…(read more)
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Bank failures happen when a bank is unable to meet its financial obligations and is forced to close its doors. This can have devastating effects on the individuals and businesses that entrust their money to that bank. It’s important to understand the causes of bank failures and to assess the safety of your money when you deposit it into a bank account.
One of the biggest causes of bank failures is bad loans. Banks are in the business of lending money, and when they make loans to people or businesses that are unable to pay them back, they can quickly find themselves in financial trouble. Banks can also experience failures as a result of poor management, fraud, or economic downturns.
When a bank fails, the first concern for depositors is the safety of their money. In the United States, the Federal Deposit Insurance Corporation (FDIC) insures bank deposits up to $250,000 per depositor per insured bank. This means that if a bank fails, the FDIC will ensure that you get your money back, up to the insured amount. Other countries have similar deposit insurance programs to protect depositors.
It’s important to note that the FDIC only insures deposits at banks that are insured by the FDIC. If you are doing business with a bank that is not FDIC-insured, your deposits may not be protected in the event of a bank failure.
To assess the safety of your money, it’s important to do your research before depositing your money into a bank account. Look for a bank that is well-established and has a strong reputation for financial stability. Check to be sure that the bank is FDIC-insured, and be sure to stay within the insured limit for your deposits.
It’s also a good idea to diversify your deposits across a few different banks. This can help to spread out your risk and ensure that your money is safely insured. If you have more than $250,000 to deposit, consider opening several different accounts at different banks in order to ensure that all of your deposits are insured.
Bank failures can be unsettling, but there are steps that depositors can take to protect their money. By doing your research, staying within the FDIC-insured limit, and diversifying your deposits, you can ensure that your money is safe and secure in the event of a bank failure.
Great summary Lane. I was just asked about this!
Hi thank you for you explain to us my question to you please I am in SSI like you know everything is expensive I need to go back to work and my health is not good so what do you want to do to keep my benefits please thank you
Great information.
Excellent Summary. Thank You
Irresponsible is pretty much an understatement of how our government has handled the financial dealings it is entrusted with. Too many years of low interest rates to spur people to buy land or stock or whatever instead of fair interest rates to encourage people to save. Government doesn't make much off of interest paid to you, but buy some land and sometime sell it different story. Makes one think they might of had something in mind when they play this game?
Our future
1 full retirement age change to 70
2 housing bubble crash
3 digital currency
America's banking system is corrupt. Just like America's goverment.
I have heard that the rules on fractional banking have changed. I heard that banks can loan out 100% of the depositor's money. This may not be true, check it out for yourself.
I think banking is safe overall, but there are a few “bad actors”. I don’t think SVB was a regulatory “rollback” issue, I think the FDIC dropped the ball on oversight.
I heard someone say that the FDIC does not actually have enough money to cover all the (250K) money in bank accounts…..is that true?
That 250k is before or after inflation? Ha….their bringing in that CBDC and we’re all screwed
Thank you Lane for explaining this. I skeptical of retiring this coming August. After 42 years vested in the stock market I have a few dollars saved. I'm hoping things will be some better.
So clear! Thank you. You should teach college. My niece is a college senior and has no understanding of any of this!
One question-
My husband got an SBA loan a year ago. Says he didn't understand it was quarterly adjusted with NO CAP!
We've gone from 6.5 to 10.5 on 600k. It's killing the business and eating all profit. We are now trying to sell but do you have any advice?
The problem with the fdic is ok we'll pay you but it's going to take "x" amout of time. Or an installment plan.
So the interests of the banks are earning on the money that belonged to the people who bank in the bank? Where is that interest going to who's getting paid on that it's definitely not the people who have their money in their bank account is that the bank? Whose earnings interest for themselves because? That should be against the law that should go to the person who's got money in the bank that the bank is using to give out loans and stuff. To other people.