Finding out where a bank puts its assets

[crgarcia]

Quote from tomahawk:

My father, who is quite conservative, likes to spread some of his money among CD's at different banks. Lately he's getting nervous about the possibility of alot of banks going under, given the current environment in the mortgage and credit markets.

So he has asked me to help him try to find a source of information on where a given bank places its assets, in order to make sure if he invests there that his money will be safe. I found some general information at the federal reserve website, but no specific info on individual banks (just the foreign/domestic ratio). This is not my area of expertise at all, so if anyone has any leads, I'd appreciate it.

Thanks.

Banks put most of their assets in direct credits. Treasury bills second, munis-corporate-mortgage bonds third. Stocks fourth, only accounting for up to 10% of their deposits.

If he's very conservative he should open an account in Treasury Direct and roll 4 week T-Bills. Zero risk, zero commissions.

 

[tomahawk]

Quote from brownsfan019:

Contact each bank and ask for some sort of balance sheet. I'm not sure about the large corporations out there, but small banks/credit unions usually have a list of all assets and liabilities available, upon request. When I was a broker, I would get these lists and prospect the small banks/credit unions who had low CD rates to sell them CD's, bonds, etc. The list was readily available at the bank.

Thanks brownsfan. Had a feeling it might come down to that, but wasn't sure.

 

[tomahawk]

Quote from crgarcia:

Banks put most of their assets in direct credits. Treasury bills second, munis-corporate-mortgage bonds third. Stocks fourth, only accounting for up to 10% of their deposits.

If he's very conservative he should open an account in Treasury Direct and roll 4 week T-Bills. Zero risk, zero commissions.

Thanks crgarcia. He does some T-bills, not sure to what extent. Good idea though.

Thanks to the rest of you guys for your responses as well.

 

[a529612]

Quote from crgarcia:


If he's very conservative he should open an account in Treasury Direct and roll 4 week T-Bills. Zero risk, zero commissions.

What if US Treasury goes bankrupt with its mounting deficit?

 

[rcanfiel]

Quote from Vinny1:



Also, if you have debts outstanding here in the US, can creditors seize assets held in a Swiss account?

With a great deal more difficulty than seizing American assets.

The point is not to evade American authority or taxes. The point was to safeguard his assets

 

[Trendytrader]

Actually US Treasury could be seen as "sub-prime"....maybe time for international lenders to pull the plug on lending to US or force 500 basis point increase in cost of lending.

 

[Eliot Hosewater]

Quote from rcanfiel:

This is a strange fear. Banks are backed by the US government. If the US Govt failed, it won't matter where he puts it. Open a swiss account, but don't hide it from the govt. That is about as safe as it gets

Ask this guy if it is a strange fear. Banks are not backed by the US government. Accounts are insured up to $100,000 by the FDIC.

http://www.post-gazette.com/pg/07217/807090-28.stm

A lifetime of saving evaporates with bank's collapse
Lawrenceville bank closes, one customer is short $321,573

Sunday, August 05, 2007
By Dan Fitzpatrick, Pittsburgh Post-Gazette

Raymond Przybilinski socked away $521,000 from a lifetime of driving trucks, working overtime when he could and playing the piano or accordion late into the evenings at weddings, hotel bars and social clubs.

"I never drank, I never smoked, always saving," said Mr. Przybilinski, speaking from his kitchen in Stanton Heights.

The money was destined for his five children. But that was before more than half of the family nest egg disappeared on Feb. 2 as state banking regulators seized Metropolitan Savings Bank in Lawrenceville, citing "unsafe and unsound" operations. When Mr. Przybilinski tried to take his money out, the man in charge of Metropolitan Savings' assets informed him that there was only $200,000 left to withdraw -- the amount protected by the federal government. A letter from the Federal Deposit Insurance Corp. later confirmed Mr. Przybilinski's status as a creditor for the remaining $321,573.47. He may or may not recover some of that money.

...

 

[monee]

Quote from Eliot Hosewater:

Ask this guy if it is a strange fear. Banks are not backed by the US government. Accounts are insured up to $100,000 by the FDIC.

http://www.post-gazette.com/pg/07217/807090-28.stm

A lifetime of saving evaporates with bank's collapse
Lawrenceville bank closes, one customer is short $321,573

Sunday, August 05, 2007
By Dan Fitzpatrick, Pittsburgh Post-Gazette

Raymond Przybilinski socked away $521,000 from a lifetime of driving trucks, working overtime when he could and playing the piano or accordion late into the evenings at weddings, hotel bars and social clubs.

"I never drank, I never smoked, always saving," said Mr. Przybilinski, speaking from his kitchen in Stanton Heights.

The money was destined for his five children. But that was before more than half of the family nest egg disappeared on Feb. 2 as state banking regulators seized Metropolitan Savings Bank in Lawrenceville, citing "unsafe and unsound" operations. When Mr. Przybilinski tried to take his money out, the man in charge of Metropolitan Savings' assets informed him that there was only $200,000 left to withdraw -- the amount protected by the federal government. A letter from the Federal Deposit Insurance Corp. later confirmed Mr. Przybilinski's status as a creditor for the remaining $321,573.47. He may or may not recover some of that money....

Guess he didn't read the fact that each depositor is insured up to only $100,000 dollars in one bank.
I have spoken to people who thought it was $100,000 per account and were shocked when they found out it was $100,000 per depositor.
It is sad for the guy though.

 

[o10maximus]

Quote from a529612:

What if US Treasury goes bankrupt with its mounting deficit?

One might argue they already are. We've been spending money we don't have (unless they print more I guess, doh)

 

[Daal]

Quote from Eliot Hosewater:


http://www.post-gazette.com/pg/07217/807090-28.stm

A lifetime of saving evaporates with bank's collapse
Lawrenceville bank closes, one customer is short $321,573

"Later in life, he chose not to invest his savings in stocks, which "go up and down," he said. Instead, he stashed all of it in banks. Two years ago, he transferred all his savings from Fidelity Bank to Metropolitan because of an account program offering interest of 5 percent. T"

as the saying goes
"More money has been lost in search for yield than any other way".
He should blame himself, he should have diversified among different banks and sticked with the big banks because they are backed the goverment. tried to reach for a little more yield on a weird bank got what he deserved