I don't think you would need to wait a long time to get you money back, but, as I understand it, the FDIC only covers your principal, not the guaranteed future interest on a CD. I totally disagree with paying off investors who exceeded the insurance limits because I suspect that it will be at the expense of the taxpayers, even though they say it won't. I have never understood why you can increase the FDIC insurance limit by the way you name an account and by spreading your money around to different banks. But I never use a bank for investing. I would rather use Treasury bills and bonds and mutual funds. One thing that is causing banks to fail now is that people are moving their money out of the banks to get higher yields. Banks need to start competing with other available investments. Banks have been getting a free ride, and now the Government will be bailing them out. Yes, it is weird.
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