On 23 Jan 2008 04:12:40 GMT, "John Q. Public" wrote:

In message , Vic Smith is
alleged to have said:

On 22 Jan 2008 22:33:36 GMT, "John Q. Public" wrote:

In message , Vic Smith
is alleged to have said:

FDIC is not a panacea for investing or any sort of risk/reward
arbitrage. Its looks good, but it's only so much per depositor - for
any real money, you'd have to have seperate accounts at seperate
banks which can be a nightmare - in particular if you don't actively
manage the accounts.

And it's only good for $100K per.

No. For IRA's it's 250k.
http://www.fdic.gov/deposit/deposits...standings.html

If your bank is a part of FHLBS, it's zero.

http://www.fdic.gov/about/learn/advi..._advances.html

The FHLBs have a "super lien" when institutions fail. To protect their
position they have a claim on any of the additional eligible collateral
in the failed bank. In addition, the FDIC has a regulation that
reaffirms the FHLBs priority and the FHLBs can demand prepayment of
advances when institutions fail.

You're misunderstanding the roles and purposes of the FDIC and FHLB's.
Suffice it to say you're wrong.

OK Dr. Bernanke, whyza donna choo 'splain it fo' us ignrnt masses?

Ain't no ignorant masses. You're the only one who said the above.
To keep it simple, just read this
http://www.fdic.gov/deposit/deposits...its/index.html
The first para states:
"If your insured bank fails, FDIC insurance will cover your deposits,
dollar for dollar, including principal and any accrued interest, up to
the insurance limit."
There are no gotchas, unless the gov itself fails.

I won't discuss FHLBS except to say it's a gov chartered org designed
to move money around to lenders who need it to finance loans.
This stuff is boring as hell, and the main reason I retired early to
get away from accountants. I'm far from an expert on it, but do read
pretty well.
What set you astray was seeing "super lien" but not seeing "additional
eligible collateral in the failed bank" in your quote above.
And it seems you don't know that the FDIC collects insurance premiums
from banks and has funds to pay claims.
The FDIC pays insured depositors to the insurance limit with FDIC
funds, then they can squabble with the FHLB over who gets the
"additional eligible collateral in the failed bank."
I don't know why you chose your false interpretation.
But it sounds like you're trying to scare old people.
Didn't work with me!
Just gave me something to do instead of cleaning the garage!
NA-NA-NA-NA-NANA

--Vic