"Everything's Fine" letter from my bank today . .

RonMN

Rather than withdraw money...just move a large portion to your checking account in the same bank (if you don't have a checking account with them, create one).

Then go to another bank & start another checking account & write a large check from the first account into this new account at the new bank.

Once in your checking account, you can move the money any where, any time, simply by writing a check.

It's time to stop thinking of earnings & interest...at this point it's all about PRESERVATION!
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Quis custodiet ipsos custodes.

Tyler_JC

The 2nd quarter results were actually pretty good for NWSB.

Net income was up 17% and return on equity was up.

The bank looks pretty good on paper as of July, 2008.

If their balance sheet deteriorated to the point where they are verging on insolvency in one month...that's a scary sign.
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"www.peakoil.com is the Myspace of the Apocalypse."

emersonbiggins

You can also write a cashier's check straight from your savings to an account at another institution (if you don't like briefcases Cool

).
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"It's called the American Dream because you'd have to be asleep to believe it."

George Carlin

Revi · Fusion Joined: Apr 25, 2005 Posts: 3537 Location: Maine

Thanks for that link, Rocc. I feel a lot better now.

It's not just your local bank. The whole world financial system since WW2 is going down. Great...
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Deep in the mud and slime of things, even there, something sings.

pup55 · Expert Joined: May 26, 2004 Posts: 3861

Well, after checking their financials:

NWBC

the additional argument can be made that they really are not in all that bad shape, and they just want to talk the business up a little bit.

According to their profile, they are competing against NCC, which is struggling, and MTC which is also getting beaten up. Maybe they want to benefit from possible bank runs from those two banks. That money has to end up somewhere.

According to their 10Q they do have about 1.3% nonperforming loans, compared to 1.0% in December, and also, they had a decrease in deposits by $158 million in that time, only a couple of percent, but that could be just the economy slowing down or something. Their competitor NCC which is losing a lot of money, claims to have 3% nonperforming loans at the moment.

Now, it is quite true that even though performing, a lot of these loans could be on the books for a lot more than the underlying property is worth, and in fact, this is likely, but there is no real way to tell on that what is real and what is not, except for believing the officers of the bank when they tell you this is the case.

So unless they know something that we don't, maybe what they are saying is just friendly PR by the officers, and nothing to worry about. Anyway, for every PO.com poster that gets a letter like that, there is a little old lady that says "how nice, my bank is nice and safe" to offset it, so maybe the net impact on deposits is close to zero.

patience · Expert Joined: Jan 04, 2008 Posts: 1762

Fact: We are in the midst of the greatest credit debacle in history.

Fact: The US govt and the FDIC have taken unprecedented actions to try and cope with this.

Fact: Some banks have failed anyway this year, one of them being a very large one. (Indymac)

Fact: Shenanigans were pulled with regard to Bear Stearns, to "prevent a meltdown", according to Bendover.

Do whatever you gotta do. My money AIN'T in a bank.
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Local fix-it guy..

vision-master

Jotapay · Intermediate Crude Joined: Jun 21, 2008 Posts: 675

You guys keep all your money in the bank. That helps me.

joeltrout · Light Sweet Crude Joined: Sep 19, 2007 Posts: 1317

virgincrude

Cash, go here: FDIC Institute Directory and do a search on your bank's history.

This report: Agency's Head Expects Banking Crisis to Worsen

tex123

Thanks for the FDIC link, seems my bank is now in the foreclosure business. Acquired over 3000 mostly commercial real estate through foreclosure up from around 46 the year before. Should this worry me or do I just not understand the banking business?

kpeavey · Expert Joined: Oct 04, 2004 Posts: 1323

ABC: FDIC Warns of More Bank Troubles

Serial_Worrier · Heavy Crude Joined: Jun 05, 2008 Posts: 285

I just keep gold bars under my bed.

frankthetank

Do yourself a favor and when you cash out... Get it in pennies and nickels... You'll make money on the deal! Have them throw in a few rolls of halves and for $hits and giggles, have them throw in a few dollar coins...
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Clothing should be optional.

GASMON

NEVER have more money in a bank account than the guaranteed amount they pay if they go down. Don't know what that is in the USA, but in the UK all UK deposits in bank or building society savings products are covered by the Financial Services Compensation Scheme (FSCS). This is an independent fund set up by UK financial bodies and regulated by the Financial Services Authority (FSA) which promises that, in the event of a bank collapsing, you'd get some of your money back. This applies to everyone, no matter their age, including children. Remembering the exact amount you get is so crucial, it needs to be writ large.

"The first £35,000 you have saved per financial institution is protected."

Good money site link for UK

http://www.moneysavingexpert.com/savings/safe-savings#collapse

Spread your investments around. Check your guarantees. Stay within their safety net. NEVER trust men in suits, or letters from them.

Gasmon
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Been there, Done that, Bought the tee-shirt