Another Sinker

Another bank has failed. A bank in Florida joins the list of seven other bank failures this year.

This is like what we read in our history books about the late 1920s and early 1930s. Then there were no regulations and no insurance on deposits. Back then a family with means could just open a bank, lend money, taken in deposits, post interest earned and collected on hand ledgers.

But now. Now we have all types of federal and state regulations. There is deposit insurance up to $100,000 per account per bank through FDIC.

Why didn't the regulations keep these banks safe? Will we the people bail this one out? Who decides what bank gets a life saver thrown?

More questions arise. How do we know if our bank is solid. Will we have any warning or will our deposits be locked down until FDIC can cover our claims? I understand the panic feeling.

One lesson is to spread $ over different institutions to have the maximum insurance available for deposits. No more than $100,000 per bank.

'til later