On April 10, 2009, New Frontier Bank, based in Greeley, CO, was closed by the State Bank Commissioner, by Order of the Banking Board of the Colorado Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as Receiver. You may have read that to protect depositors, the FDIC created the Deposit Insurance National Bank of Greeley (DINB), which will remain open for approximately 30 days to allow depositors time to open accounts at other insured institutions. Bank of the West, San Francisco, California, was contracted by the FDIC to provide operational management of the DINB. However, the agreement did not include brokered deposits, including CDs sold through Schwab CD OneSource®. The FDIC will transfer funds to CD brokers, like Schwab, directly.
Schwab will provide the FDIC with your name and account information. If the FDIC needs additional information, we'll contact you. The FDIC will determine how much each depositor is eligible to receive, and will transfer the funds to Schwab. Once we receive the funds, we'll credit your account as quickly as possible.
bombcar wrote:I went through the failure of WaMu, and nothing interesting happened. In fact, it was surprisingly boring.
IlliniGuy wrote:Has anyone had money in a bank that failed recently? I asked this question deep in another thread on GMAC Bank. I am wondering if depositing money, within FDIC limits, at a bank that might be in trouble is worth the hassle of dealing with an FDIC takeover. If there is little delay in being able to withdraw money from a savings account, and the FDIC will continue to pay interest on CDs, then I would say there is little hassle involved and no reason to avoid keeping money in a troubled bank. I would like to know the experiences of others.
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