Hey is anyone using Wamu bank accounts? I was just wondering what i should do since i hear that wamu is having some trouble. SOo i want to ask the pros here. Please give me good advice..

 

If you are a Wamu cutsomer, as long as your account is under FDIC limits, you have nothing to worry about. Your money is protected, and even if the FDIC has to take over Wamu, you should have no interruption to access to it.
For individual account holders, the FDIC limit is $100,000. If you have more than that at Wamu, move some of it to another bank, and keep no more than the limit at Wamu.

Incidentally, and perhaps not coincidently, Wamu has an incredible 5% yield on only a 1 yr CD right now. This is a great deal for those with cash on the sidelines. This CD of course would be FDIC insured.

Andrew

 

If LEH goes bankrupt today, WM will probably quickly follow. Their issues differ but the solutions to their problems are nearly identical.

 

Why do so many people worry and create a run on banks when we know the FDIC hasn't ever failed depositors?

 

AHH thanks for the advice soo i dont really have to worry about anything if im a regular customer.

 

An appropriate word comes to mind SHEEP!

But on a more serious note bankruns are created by big investors like Hedgefunds etc. rather than the average Joe and usually there are ulterior motives behind it IMHO.

 

[QUOTE=sahtt,Sep 14 2008, 04:29 PM] If LEH goes bankrupt today, WM will probably quickly follow.

 

There's a big difference between having your deposits safe and being able to get them promptly. I don't know how FDIC works, but I'd prefer to get my money when I could vs. putting it's return in the hands of the government.

Also, FDIC insurance is subject to $ limits.

 

^^^ There is typically no interruption in the availability of your insured funds when the FDIC closes a bank. They normally seize it after hours on a Fri, and then their goal is to have the bank open for business as usual the next Monday under its new federal bank charter. The weekend the bank branches are closed, you can still write checks and use ATMs normally.

Andrew

 

On second thought, yeah WaMu, Key, National City and their ilk are all one foot in the grave. AIG is probably the next firm to fall followed closely by the above.