Posted by Killer Joe on March 26, 2008 at 13:48:31:
In Reply to: FDIC/bank insurance questions posted by Grendel on March 26, 2008 at 13:29:04:
Grendel,
This brings to mind the story of when the Bank of Beverly Hills went BK a couple of decades ago.
The local news reporters interviewed several customers the evening the bank shut its doors for good, and some of those stories were chilling to say the least.
Two tales that stuck in my mind where an elderly couple who had recently sold their home and deposited the check a few days before. That check was for a little over $300K and was only insured up to the FDIC limit. The check had cleared and they lost a lot of money.
The second was a builder who had deposited $400K, the down payment from a client for an apartment complex he was to start building. A lot of that money evaporated as well.
What struck me most was a comment from a depositer who put a sizable cash deposit in the bank at 2 o'clock in the afternoon. He was livid, and rightly so, that the teller who took his deposit knew in advance that the bank would be shutting business down at 5 o'clock that same day. His account exceeded the insurance limit and he could not understand why the teller did not give him a heads up about the situation.
Bottom line...CYA and don't expect a bank or any of its employees to look out for your better interests.
KJ