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jadedragon
Administrator
Canada
3788 Posts |
 Posted - 08/22/2008 : 19:52:35
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FDIC went to Kansas and seized The Columbian Bank and Trust Company, Topeka, KS excepted from FDIC press release:
August 22, 2008
The Columbian Bank and Trust Company, Topeka, KS was closed by the Kansas Office of the State Bank Commissioner and the FDIC was named Receiver. All insured non-brokered deposit accounts have been transferred to Citizens Bank & Trust, Chillicothe, MO. The nine branches of The Columbian Bank and Trust Company will reopen on Monday as branches of Citizens Bank and Trust.
As of June 30, 2008, The Columbian Bank and Trust Company had total assets of $752 million and total deposits of $622 million, of which there were approximately $46 million in uninsured deposits held in approximately 610 accounts that potentially exceeded the insurance limits.
Citizens Bank and Trust agreed to assume the insured deposits for a 1.125% premium. It will also purchase $85.5 million of the failed bank's assets. The assets are comprised mainly of cash, cash equivalents and securities. The FDIC will retain the remaining assets for later disposition.
The cost to the FDIC's Deposit Insurance Fund is estimated to be $60 million. The Columbian Bank and Trust Company is the first bank to fail in Kansas since Midland Bank of Kansas, Mission, Kansas, on April 2, 1993. This year, a total of nine FDIC-insured institutions have been closed.
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“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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Ant
Penny Hoarding Member
USA
894 Posts |
 Posted - 08/22/2008 : 20:46:07
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Holy rock chalk jayhawk, Batman. 
Kansas? KANSAS??!? |
Lovely dimes, the liveliest coin, the one that really jingles. --Truman Capote
Coins are the metallic footprints of the history of nations. --William H. Woodin |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 08/23/2008 : 16:56:39
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| Just wait until football season starts....... distracted sheeple....more ESPN and less fox-snooze and cnn. |
"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 08/25/2008 : 07:19:07
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"there were approximately $46 million in uninsured deposits "
How many times does this have to happen before people around the country wake-up and get their money into insured accounts? |
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TenBears
1000+ Penny Miser Member
USA
1021 Posts |
Posted - 08/25/2008 : 08:44:40
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quote:
Originally posted by horgad
"there were approximately $46 million in uninsured deposits "
How many times does this have to happen before people around the country wake-up and get their money into insured accounts?
Wow. I can't imagine exceeding the insured amount in an account. You would think that people who have that kind of money would handle it better. |
"Rich," the Old Man said dreamily, "is not baying after what you can't have. Rich is having the time to do what you want to do. Rich is a little whiskey to drink and some food to eat and a roof over your head and a fish pole and a boat and a gun and a dollar for a box of shells. Rich is not owing any money to anybody, and not spending what you haven't got." Robert Ruark
there are too wild Indians...
there are too wild Indians...
there are too wild Indians...-----still taunted
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 08/25/2008 : 14:04:48
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quote:
Originally posted by TenBears
quote:
Originally posted by horgad
"there were approximately $46 million in uninsured deposits "
How many times does this have to happen before people around the country wake-up and get their money into insured accounts?
Wow. I can't imagine exceeding the insured amount in an account. You would think that people who have that kind of money would handle it better.
Well, there are few possible reasons.
1. You were lazy and didn't move funds
2. You were yield chasing on deposits and keep funds there due to better yields
3. You have so much money that you couldn't find enough banks to stay under the limit (highly unlikely)
4. Mergers could put you over if you had two long term cds at different banks and they merged together.
I think it is likely mostly 1 and 2. I would think most people with money (not retirees with a few hundred thousand in CDs, but your millionaries with professional help) are in treasury or high grade money markets with cash.
Money flows to those that manage it well. Those that don't will not hold it long. That is a fact of life. You could nationize all the assets and divide them up ----in thirty years... there would be rich, middle, and poor all over again.
-SWUSC
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`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 08/25/2008 : 17:25:42
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| Or 5. You have a business account that runs a lot of money through it. $100,000 on deposit is not a very big business. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 08/25/2008 : 18:25:42
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I would think a business would be smart enough to get a ZBA account that sweeps into a treasury money market fund at night.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 08/25/2008 : 19:41:21
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quote:
Originally posted by swusc
I would think a business would be smart enough to get a ZBA account that sweeps into a treasury money market fund at night.
-SWUSC
sure, that is a good idea to earn a little interest, but how does it help on a Friday at 2PM when FDIC walks in? |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 08/25/2008 : 20:37:10
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It isn't just the interest even though it is higher than normal for the most part. It makes the balance not on the bank's books.
The bank account is a Zero balance account(ZBA). The balance is always $0.00. All activity for the day is netted and a transfer is made from/to the ZBA to keep the balance zero. The bank problems shouldn't matter to the money market fund(a separate legal entity), which should be ok if it is treasury based. I guess a the FDIC could make a case that daily activity is up for grabs, but a lot of business I have seen have many accounts (say each retail location has its own ZBA account to help mostly with accounting issues) with many different banks (a lot of business use JPM for the corporate account ZBA, but how many JPM branches have you seen) that make the transfer to the main corporate account. The bank with the corporate account usually is the manager of the money market fund (they make say 80 bpp a year for managing it).
Any business that gets screwed needs to get a new CFO.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 08/25/2008 : 20:43:59
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| While I'm aware of this concept, this service is not widely available in Canada. We run with Lines of Credit, so if a bank failed (which they just don't in Canada) we would usually owe the bank (bank's asset) not the reverse. I might ask my bank about this concept again because they are always bringing in new innovations. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 08/25/2008 : 20:49:03
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It isn't just the interest even though it is higher than normal for the most part. It makes the balance not on the bank's books.
The bank account is a Zero balance account(ZBA). The balance is always $0.00. All activity for the day is netted and a transfer is made from/to the ZBA to keep the balance zero. The bank problems shouldn't matter to the money market fund(a separate legal entity), which should be ok if it is treasury based. I guess a the FDIC could make a case that daily activity is up for grabs, but a lot of business I have seen have many accounts (say each retail location has its own ZBA account to help mostly with accounting issues) with many different banks (a lot of business use JPM for the corporate account ZBA, but how many JPM branches have you seen) that make the transfer to the main corporate account. The bank with the corporate account usually is the manager of the money market fund (they make say 80 bpp a year for managing it).
Any business that gets screwed needs to get a new CFO.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 08/26/2008 : 18:24:50
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Got this in my email from FDIC:
The second quarter 2008 FDIC Quarterly Banking Profile (QBP) is now available online. FDIC-insured institutions reported net income of $5.0 billion in the second quarter of 2008, a decline of $31.8 billion (86.5 percent) from the $36.8 billion that the industry earned in the second quarter of 2007. The primary reason for the drop in industry profits was higher provisions for loan losses. The size of the earnings decline was mainly attributable to a few large institutions, but more than half of all insured institutions (56.4 percent) reported lower net income in the second quarter.
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“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
Edited by - jadedragon on 08/26/2008 18:25:36 |
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