Quote:
Originally Posted by Pico and ME
What happens if so many banks fail that the FDIC cant insure our money? Or is that even an issue?
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FDIC has already quietly gone to the government for a bridge loan. They have already paid out so much on failed banks as to have a liquidity problem.
Bank accounts are insured to $100,000. Investment accounts are insured to $500,000. If you have more than that in any brokerage, and if the brokerage goes as Lehman probably will, then you lose all but the first $500,000.
These are not times to be complacent. You should know this stuff. Stock brokers don’t like it when you limit investments to $one-half million. They have multi-hundred thousand dollar incomes to protect.