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CD Rates Can Be Cut After Takeover
Posted on October 2nd, 2010 No commentsNo one has ever lost a penny on bank deposits insured by the Federal Deposit Insurance Corp. – but when a bank fails, the acquiring institution does have the right to lower interest rates paid on certificates of deposit. That’s what happened when North Shore Bank recently acquired Maritime Savings Bank and reduced a 3.05 percent CD rate, which one customer called an insult. Read the article in the Milwaukee Journal Sentinel.
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Professor Explains What the FDIC Does
Posted on June 29th, 2009 No commentsWhat does the Federal Deposit Insurance Corporation do? The Wisconsin State Journal answers, with help from University of Wisconsin-Madison banking professor Jim Johannes. Read about Johannes’ March presentation to members of CEOnly Network.
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FDIC Extends Deposit Insurance Limit
Posted on May 26th, 2009 No commentsThe temporary increase in bank deposit insurance to $250,000 has been extended for four years, the Federal Deposit Insurance Corp. announced in a letter to financial institutions on May 22. The standard maximum insured amount was increased to $250,000 last fall, but was set to return to $100,000 at the end of 2009. The temporary increase has now been extended through 2013. Read the Business Journal article.
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Bankers Upset Over FDIC Assessment
Posted on March 18th, 2009 No commentsIt is easy to understand why community bankers are so upset by the special assessment the FDIC has proposed to restore the Deposit Insurance Fund. Whether the assessment is 20 basis points or 10, it will be a major hit to earnings. Many community bankers feel they are being asked to clean up a problem they didn’t create, writes NorthWestern Financial Review Editor Tom Bengtson. Read more on the NFR blog.