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^^^ yup, and that failure officially 'bankrupted' the FDIC's deposit insurance fund !
actually, there is something else 'different' about this particular bank failure ( per an investors' BBS)
(snip)This one is a little different - the family that owed AmTrust Financial services (parent company) --- took out all of thier money and out it in another bank BEFORE the banruptcy filing.
Apparently - they learned a thing or two - on what happens to the stockholders (you get zip) from the Washington Mutual and Wachovia meltdown.
These folks are no banking fools --- they took their money and ran --- left everybody else holding the bag."(snip)
(snip)The money removed from the bank belonged to the family. It was NOT bank capital. It was perfectly legal and appropriate. They were the ONLY commercial depositors with funds over $1million which is the current threshold for FDIC insurance (not to be confused with the $250k single depositor). They learned their lesson from big investors in WAMU who are still trying to get their money back (most legal experts say that they will eventually prevail). "(snip)





Bank failures are very orderly and the public doesn't take notice.





^^^ well, they won't have a choice but to notice in the future since ... technically speaking ... the FDIC has zero money left with which to pay off the FDIC insured account holders at future failed banks !
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