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CDs in countrywide bank, are they safe?
- Thread starter dumbgai
- Start date
Quote from dumbgai:
What are the chances that countrywide will pull an Indymac here?
I really want to pull my CDs (for sum greater than FDIC insured) after the recent failures of Indymac.
My CDs expire on 09/10.
Pull them out now, or later?
Depending upon ownership and beneficiaries, accounts can be insured above $100,000.
http://www.fdic.gov/deposit/deposits/index.html
Your CDs are probably safe for now.
BAC acquired CFC on July 1.
Red Oak aquired the CFC parent and then changed it's name to CFC. BAC then acquired (I call it cherry picking) about $ 31 billion of CFC assets. BAC gave CFC a mix of cash and IOUs for the assets. BAC claimed that all assets purchased were done at fair market value.
Assets purchased by BAC include some mortgages, swaps and the loan servicing platform. CFC use the cash it got from BAC to retire the $11.5 billion of revolving debt. That was probably a good thing since the rates that CFC was paying was probably very high.
Now you have to ask, why all the shuffling of the deck chairs?
I think BAC will take a wait and see approach. If the CFC mortgage portfolio performs as BAC expects, then everything will be fine.
If the CFC portfolio continues to decline in value and if the NPA rises more than BAC projections, then I can see BAC allowing CFC slide into a BK filing. BAC has already taken the best assets from CFC that it really wanted.
BAC has not explicitly stated that they will stand behind the CFC debt. CFC is still issuing CDs under their own Countrywide Bank and NOT under Bank of America. That should give you a clue.
For now, you are probably safe. But 2010 is a long way out...
Go to the SEC website and read the CFC filing. I think it was July 8, 2008. You can then draw your own conclusion.
BAC acquired CFC on July 1.
Red Oak aquired the CFC parent and then changed it's name to CFC. BAC then acquired (I call it cherry picking) about $ 31 billion of CFC assets. BAC gave CFC a mix of cash and IOUs for the assets. BAC claimed that all assets purchased were done at fair market value.
Assets purchased by BAC include some mortgages, swaps and the loan servicing platform. CFC use the cash it got from BAC to retire the $11.5 billion of revolving debt. That was probably a good thing since the rates that CFC was paying was probably very high.
Now you have to ask, why all the shuffling of the deck chairs?
I think BAC will take a wait and see approach. If the CFC mortgage portfolio performs as BAC expects, then everything will be fine.
If the CFC portfolio continues to decline in value and if the NPA rises more than BAC projections, then I can see BAC allowing CFC slide into a BK filing. BAC has already taken the best assets from CFC that it really wanted.
BAC has not explicitly stated that they will stand behind the CFC debt. CFC is still issuing CDs under their own Countrywide Bank and NOT under Bank of America. That should give you a clue.
For now, you are probably safe. But 2010 is a long way out...
Go to the SEC website and read the CFC filing. I think it was July 8, 2008. You can then draw your own conclusion.
Quote from wareco:
Depending upon ownership and beneficiaries, accounts can be insured above $100,000.
http://www.fdic.gov/deposit/deposits/index.html
Yes if it's a joint account it's $200k, I verified this with both FDIC and NCUA ( for credit unions ).
If someone is concerned though, check yourself, it's your money.
Quote from dumbgai:
What are the chances that countrywide will pull an Indymac here?
I really want to pull my CDs (for sum greater than FDIC insured) after the recent failures of Indymac.
My CDs expire on 09/10.
Pull them out now, or later?
If you pull them early, the bank can keep 6 months of interest. I wouldn't panic as the others have said.
3 months isn't bad at all. Fifth Third Bank (FITB) is a piece of sh*t, and pulls the 6 month crap on CD holders when they pull the money early.
there is a brand new fifth third branch that opened right by my house. So their policies suck, that's too bad. You know musclemoney, what banks do you like and do business with? Just curious. I've been seeing you around the forums and find your posts interesting.