Zero Rate Treasury Bills: As reported by this CNN article, the Treasury auctioned $30 billion worth of 28-day bills Tuesday at a yield of 0%. Investors are desperately looking for safety and security. This can't be good for bank deposit rates.
Trusting the FDIC: Many people may be staying away from banks because they don't trust the FDIC. The FDIC had a press release today in response to a CNBC/Portfolio.com survey which showed that 31% of consumers surveyed had little or no confidence that their money would be safe if their bank were to fail. The FDIC reiterated the fact that FDIC insured savings were backed by the full faith and credit of the United States government. It also mentioned some of the recent changes including the new temporary $250K coverage which I last mentioned in this post.
More Problems at GMAC: CNN reports that GMAC Financial Services (parent of GMAC Bank) has said it's coming up well short in its efforts to raise the capital needed to become a bank holding company. GMAC applied to the Federal Reserve in November to become a bank holding company so it can be eligible for some of the $700 billion bailout funds. This MarketWatch article has some more details and commentary on GMAC's troubles.
Strongest US Bank? Which is the strongest bank: Bank of America, Wells Fargo or JPMorgan Chase? According to this Financial Week article, it's Chase.