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#329105 - 03/03/05 07:57 PM FDIC Coverage Over $100K?

Can someone obtain more than $100,000 FDIC Coverage, say up to $10 million. I heard a radio promotion by a local bank touting the ability to provide up to $10 million in FDIC coverage and stated that they were the first in our state, Louisiana, to offer this. Is this something new or what?

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General Discussion
#329106 - 03/03/05 10:02 PM Re: FDIC Coverage Over $100K?
berico Offline
Gold Star
Joined: Jun 2004
Posts: 290
This is most likely the program whereby a clearing house distributes balances (in $100,000 increments) to different institutions around the country. As far as the depositor is concerned, he deals only with your bank.

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#329107 - 03/03/05 10:06 PM Re: FDIC Coverage Over $100K?
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
We just ran an article this week in our Vendor Guru Bulletin, discussing precisely what you're asking about. CLICK HERE to read it!
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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#329108 - 03/04/05 08:49 AM Re: FDIC Coverage Over $100K?
Citrus Offline
Diamond Poster
Joined: Jul 2003
Posts: 1,139
My bank uses CDARS - it is a great program to have in place. I wrote our part of the policy and the Promontory rep and I gave the training to the everyone. It's a good tool to use in retaining your customer when there is no other alternative. We instructed our branches to use as many ownerships as possible (w/customer's okay) to keep the dollars first, then use CDARS. We have many Wealth Management customers who take advantage of it. And for example, in a custodial case where there could be only one vesting - and the customer had 250K to invest - we placed 95K with the bank and 155K with CDARS. You should look into it - particularly if your local competitors have not yet!

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#329109 - 03/25/05 05:22 AM Re: FDIC Coverage Over $100K?

We're talking about this as well. My question has to do with disclosures. Does the customer's bank provide an initial TIS disclosure and when the funds are distributed to the other banks are other disclosures provided? Also how does this affect the other deposit accounts for FDIC insurance purposes? We haven't talked with anyone yet and I just wanted to get a general understanding. Thank you.

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