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FDIC Announces Plan For How To Handle Failed Banks

Thursday, May 10, 2012 - 3:28 PM
Nearly four years on from the collapse of Lehman Brothers, Merrill Lynch and a number of other large financial institutions, the Federal Deposit Insurance Corporation is announcing its plan for what will happen the next time a too-big-to-fail bank goes kaput.

http://consumerist.com/2012/05/fdic-announces-plan-for-how-to-handle-failed-banks.html
3
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,527
1. Thursday, May 10, 2012 - 6:22 PM
Shorebreak:  I find your post appropo since I just heard over the nightly news that Chase Bank announced it has a 2 Billion Dollar Trading Loss.  Since we are Chase customers, I do hope this will not have any impact on our accounts with them.  It proves no bank is "too big to fail" but I hope Chase can find a way to keep from failing! 
2
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135
2. Thursday, May 10, 2012 - 6:45 PM
Paoli2, I wouldn't worry about Chase failing. They have more than enough capital to absorb this loss. I would be more worried about the govt overreacting and imposing more regulations on banks, which might prevent them from offering acceptable deposit rates to consumers. I would advocate breaking up Chase and the other mega banks, so no one bank has a dominant share of the market.
3
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
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