Wikinvest Wire

Like a regular Friday night date

Friday, August 01, 2008

Let's see. It's Friday, what bank(s) is the FDIC taking over this weekend? According to this report in CNN/Money, it's Florida's First Priority Bank whose first priority apparently wasn't solvency. This is the eighth bank failure of the year and the fourth in the last month.

4 comments:

mr. rational said...

Yep, I've been waiting for someone to remark on this obvious pattern to close a bank on Friday evening so no one can get to their money for a couple of days.

Let's see, which main stream 'news' media have pointed this out so far???

Hmmm... wait a minute. No main stream news media have pointed this out so far. How strange...

You have to get to a blog to find this out.

If you have half a brain, you can't really believe the main stream news media is what it pretends to be.

Now that Tim has pointed this out, I wonder how long before it starts showing up elsewhere as 'news'?

What a joke!

If you've got money in some internet bank that pays higher than normal interest rates, you might want to get it out before next Friday!

Anonymous said...

Well, as a banker I can see why they do it on a Friday. It gives them the whole weekend to try to figure out what is going on. You have to remember, the FDIC staff are not bankers (and few have ever been bankers) so they have their hands full in a bank closing situation.

mr. rational said...

The FDIC is supposed to know "what is going on" BEFORE they close it down. That's WHY they close it down. They must know BEFORE HAND that it is insolvent and that is what they are trying to hide until Friday.

I used to be a banker, too. It doesn't change the fact that the FDIC doesn't want depositors to know they're about to close it down.

They don't want runs on the banks. But, that's what will happen if people find out because they don't trust the banks or the FDIC.

Again, if you've got your money in a high interest bank, you really want to look closely at it and realize that no one is looking out for you on this. You're on your own.

Gerbil said...

Can anyone guess what First Priority's real first priority was?

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