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.

--Vic