Posted on 10/21/2011 10:00:33 PM PDT by oneolcop
But if that were to happen it wouldn’t be just the BofA account holders, it would be everyone. If FDIC defaults, essentially the US government defaults and all banks will be closed shortly thereafter as they’ll all be cleaned out - one way or another.
That was not true at IndyMac.
If you think the FDIC has the equivalent amount of money of ALL bank accounts, well, enjoy your fantasy.
That is why some people have been prepping for some time now.
If they go under, do I still have to pay my car loan to them?
ping
Nope.
You’ll pay the investor that bought you car note in the liquidation.
Isn’t a congresscritter married to a BOA exec, or something like that ?
“She also said they’re all She also said they’re all “primary lien” mortgages (whatever that means).”
“primary lien” mortgages. First in line to recoup if you default on loan. Make sure you check your county recorders office and find out if they followed state laws on property liens.
I’ve done the same and am almost completely transferred to Wells Fargo. By Nov. 10, I should be completely out of BofA.
Well, I have no plans on defaulting... never been late on a payment or anything like that. This loan started with Countrywide, went to BofA and now this new outfit... their trail is probably a real mess.
Dude, I never said that.
All I did say was if the FDIC defaults, so goes the entire banking system. If BofA goes under and the FDIC doesn’t honor their obligations no bank will survive including wherever you bank. It is you who lives in a fantasy if you think moving your money to a different bank will somehow protect you if the FDIC defaults. As soon as people lose faith in the banking system you’ll see a run on all banks like never seen before and the health of the banks before that happens will not matter.
“Well, I have no plans on defaulting... never been late on a payment or anything like that. This loan started with Countrywide, went to BofA and now this new outfit... their trail is probably a real mess.”
It has nothing to do with defaulting. But if you go to sell your home, you need to get a title insurance. Without proper recording that could be a problem.
I switched to Woodforest two years ago.
It is rated four stars by...forget which private analyst I consulted.
My credit union is rated five stars.
Fellow Freepers, keep some cash (greenbacks) in a safe place!
Benjamin Franklin is your best friend.
Very interesting. Thanks for posting. FYI...about 81 comments at zerohedge...
http://www.zerohedge.com/news/bank-america-restructuring-its-retail-bank-division-full-memo#comments
It's comforting to know that politicians never lie.
” If BofA goes under and the FDIC doesn’t honor their obligations no bank will survive including wherever you bank. It is you who lives in a fantasy if you think moving your money to a different bank will somehow protect you if the FDIC defaults.”
And I didn’t say that, either.
Besides, I don’t bank, we moved to a credit union when OUR bank closed and was given to the remade IndyMac, and that became OneWest.
Besides, pretending the banks aren’t and the FDIC aren’t insolvent, is the past time of the MSM.
I thought Freepers had more independent thought than that. Oh well.
Oh the magic credit union, those accounts aren’t also government insured are they - oh wait they are...
And like the banks the credit unions keep as much cash on hand as they have in deposits - oh wait they don’t...
And I will repeat - despite the continuous taunts - if the US government defaults, whether it starts with FDIC, NCUSIF or the general fund the money world as you know it is over, bank, credit union or the matress.
And speaking of what was not said, where did I say the banks and FDIC weren’t insolvent? Nor did I ever say it could never happend, hence the word “if”...
And last but not least you do understand that FDIC insurance is stated as “deposits are backed by the full faith and credit of the United States Government”. Whether the FDIC fund is insolvent or not it is required to meet its stated obligations and if it fails the United States Government will have defaulted. If it defaults you’re screwed no matter where you money is other than perhaps gold - get it...
I think the significance of this past post on this thread has escaped you.
“That is why some people have been prepping for some time now.”
This is getting old.
It isn’t a matter of the honor of our politicians - they have none.
If FDIC doesn’t pay its stated obligations the US government is in default. If and when that happens its over. Your dollars will be worthless regardless of where they are.
Well genius, if you think your dollars are safe in a credit union when/if the US government defaults the truth is escaping you.
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