My Bank Failed ! How is Yours?

[gawguy]

On July 11, 2008 IndyMac Bank of Los Angeles was taken over by the US Govt and handed over to FDIC for management and claims. It is now July 13.

 

http://www.fdic.gov/bank/individual/failed/IndyMac.html

 

I have a 1 Yr CD with them that was to mature July 15. I try to keep all deposits below $100k, but this one edged up to about $101,300. So this timing is very bad luck for me and my $1,300. I will post in the future as to what happens from here and if I can recover any of the $1,300.

 

Here is my BIG concern: I have $60,000 in Bangkok Bank and want to move in more because I am moving away from USD as fast much as I can. But if medium size US Bank can fail, what about big Thai banks?? I doubt if there would be any kind of coverage like FDIC and further, I doubt if it would cover foreign depositors?

 

How stable is BKK Bank? What do you think??

 

Gaw Guy

[rookie]

Depending on the final tally of the balance sheets...

You might get up to 50% of your $1,300 (or any overage above $100k) back, once the dust has completely settled with the Gov't takeover

[mongatu]

Exactly. This is why it is so important, with respect to US banks at least, to keep the balance of total like titled accounts at each institution to under 100k. Amounts over 100k are not insured by the govt.

 

I got careless myself and went a few k over on one of my accounts. This was a wake up call for me and I initiated a transfer to bring that balance down that should be accomplished by 7/15.

 

Personally, although I have never had a problem with BKK bank, I'm rather afraid to keep much money in a Thai bank. I have heard of funds disappearing from accounts with no explanation (happened to a Thai acquaintance, but I'm not sure if I know the whole story on that one).

 

About the only thing good about the US Govt these days is FDIC insurance, but ultimately, the taxpayers end up footing the bill.

[The_Munchmaster]

Frankly I'd be delighted to know that at most I have lost only $1300.

[Ckrisg]

10,000 british customers had their bank acounts empted last year due to fraud, Northern rock went bust the UK gov had to bail it out to the tune (unconfirmed approx 15billion or so)several other UK banks are scrambling around the money markets to try to gain some leverage.

 

So the Thai banks are no more unsafe than any others but no doubt this thread will turn into the old theme.................

 

 

[chuckwoww]

Frankly I'd be delighted to know that at most I have lost only $1300.

 

With inflation running at 4.5% he's actually ahead...no that's not right

[mongatu]

Sorry, don't quite follow the logic of why the Thai banks are supposed to be no more unsafe than any other. It seems that if a bank fails in most countries in the West, the govt. picks up the bill in most cases and quickly makes the customer whole or mostly whole. Has that ever happened in Thailand, for a farang moreover? I personally doubt the Thai govt. would be doing anything for a farang caught in a situation where a Thai bank failed.

 

These days any bank can fail anywhere at any time, including Thailand, the US or the UK. The question is what happens to your money after that?

 

 

[cavanami]

Also depends on how you have the account setup.

If you have two people on the account, then it is insured $100K for each person on the account (making it insured to $200K).

If you had $200K split up into two difeerent accounts, each of the accounts is insured at $100K, per each name on the accounts.

 

I always have two names on my accounts, so as to get that extra $100K of insurance.

 

Check with you bank, YMMV.

[Ckrisg]

Read the post again banks fail everywhere, would the Thai Gov repay a farang deposit I dont know? do you?

 

So Thai banks are as safe as any other unless someone can quote a specific case, the 10 000 customers in the UK got fuc... over by the UK banks who did nothing to stop frauders emptying their accounts, they get nothing back.

[exit2dos]

Any retirement fund, like an IRA, is not counted in the $100,000.