By
admin on July 11th, 2009
U.S. stocks dropped, sending the Standard & Poor’s 500 Index to a fourth straight weekly loss, as a deeper-than-estimated slide in consumer confidence added to concern the economic recovery will be delayed.
CIT Group Inc., the century-old lender that trades in the bond market as if it may fail, slid 18 percent on concern the Federal Deposit Insurance Corp. won’t guarantee its bond sales. Chevron Corp. helped lead the Dow Jones Industrial Average lower as oil completed its worst weekly drop since January and the company said the weaker dollar was slashing profit. Technology shares rose, limiting the market’s slide, following analyst upgrades of Yahoo! Inc. and MEMC Electronic Materials Inc.
Source: bloomberg.com
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By
admin on April 30th, 2009
Stocks rallied around the world amid growing speculation the worst of the global recession is over and a stream of earnings that beat analysts’ estimates. Equities climbed as companies from BASF SE to MAN AG posted earnings that beat analysts’ estimates and Honda Motor Co. forecast an annual profit. Industrial output in Japan rose for the first time in six months. U.K. consumer confidence climbed to the highest level in a year.
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By
admin on February 7th, 2009
The subprime mortgage hit banks around the nation. Their stocks has plummeted last year, and nobody knows when it will stop. Business are currently very bad for them. It’s not a surprise to see loss from them. Analysts are predicting that up to 300 banks could fail. Many people now wondering if their money is safe in the bank.
During the crisis Federal Deposit Insurance Corporation (FDIC) made some changes about the deposit insurance coverage. FDIC is a federal government run entity that provides deposit insurance protection for participating member banks. The FDIC system was set up to bring consumer confidence in US banking system during financial turmoil.
Deposits at FDIC-insured institutions are insured up to at least $250,000 per depositor until December 31, 2009. On January 1, 2010, FDIC deposit insurance for all deposit accounts—except for certain retirement accounts—will return to at least $100,000 per depositor. Insurance coverage for certain retirement accounts, which include all IRA deposit accounts, was increased permanently to $250,000 per depositor in 2006.
The FDIC protection covers a variety of bank deposits: checking accounts, savings accounts, money market accounts, certificate of deposits (CD’s). However, does not cover non bank deposit type accounts and assets like - stocks, bonds, and mutual fund investments.
So if you have more than $250,000 what will you do?
First, you should look into quality banks to make sure it’s not likely to fail. You should be reading the bank’s financial report. If they have huge loss and high ratio of non-performing loan, this is a sign of danger. Many banks which provides mortgage are in bad condition. So do your homework. You can get a lot of information at FIDC website.
A safe place to invest your uninsured excess cash is in Treasury bills. The Treasury bill is backed by the U.S. government, so it will unlikely to fail.
Another way is to spread your $250,000 across several banks. But this will create a lot of work in your life.
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