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#1058075 - 10/03/08 06:48 PM FDIC Ins temp tp $250,000
Anonymous
Unregistered

Assuming the $250 is temporary (12-31-09)

Do you think that we will have to post temporary notices and change our FDIC signage to reflect the insurance increase?

When the sign verbiage changes last year it took us 8 months to get our new signs from the FDIC. If that is the case this time, the temp increase will be nearly over.

Any comments?

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#1058208 - 10/03/08 08:01 PM Re: FDIC Ins temp tp $250,000
waldensouth Offline
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I doubt it. The new signs say that funds are insured for AT LEAST $100,000 instead of UP TO. I think they did that so that they could raise the amount in future with the cost of living adjustment they were given the ability to do without having to change the signs every time.
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#1058221 - 10/03/08 08:07 PM Re: FDIC Ins temp tp $250,000 waldensouth
Marnie Offline
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Any idea what the effective date of the change to $250,000 is?

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#1058232 - 10/03/08 08:11 PM Re: FDIC Ins temp tp $250,000 Marnie
CalifDreamin Offline
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I just spoke to FDIC and all he could say is that it wasn't official yet, and no word on when it would be. Believe it or not, we've already had some customer inquiries!
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#1058237 - 10/03/08 08:15 PM Re: FDIC Ins temp tp $250,000 CalifDreamin
Marnie Offline
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I know--marketing wants to run an ad right away to promote. Just got an email from FDIC press release from Sheila Bair on this, but no effective date.

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#1058308 - 10/03/08 09:01 PM Re: FDIC Ins temp tp $250,000 Marnie
Reads Regs Offline
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If you look at the section of H.R. 1424 that addresses the temporary increase, it says "Effective only during the period beginning on the date of enactment of this Act and ending on December 31, 2009 ..."

http://thomas.loc.gov/cgi-bin/query/F?c110:1:./temp/~c1107hKu4h:e116130:

The FDIC has not posted any guidance yet on this.
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#1058368 - 10/03/08 09:47 PM Re: FDIC Ins temp tp $250,000 Reads Regs
CalifDreamin Offline
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BOL just sent out a "Breaking News" bulletin that says it's effective immediately - that FDIC changed it as of today.

Didn't get an announcement bulletin from FDIC, but on their Are My Deposits Insured? page, it says, "On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009."

Last edited by FlamingoGal; 10/03/08 09:51 PM.
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#1058392 - 10/03/08 10:26 PM Re: FDIC Ins temp tp $250,000 CalifDreamin
nbk2yj2 Offline
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How do you all feel about the increase being temporary? If my customer is now suddenly protected or they even bring more money over because of the insurance and the increase is decreased after the allotted time period, now i tell them by the way your not covered? This could give many customers a false sense of security because once it changes back their right back where they started. I see how it helps now but i also see it as potential for more problems after the end of December 2009. I would like to see it as permanent. Maybe it's just me :)(I know, stop thinking about it)

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#1058418 - 10/03/08 11:29 PM Re: FDIC Ins temp tp $250,000 nbk2yj2
Marnie Offline
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So we get lots of new deposits coming now, but have to plan on what to do when they may go out next December?I agree, this bandaid is not the best if they don't make it permanent.

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#1058426 - 10/04/08 12:02 AM Re: FDIC Ins temp tp $250,000 CalifDreamin
Reads Regs Offline
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FDIC has a FIL on their web site about the changes. http://www.fdic.gov/news/news/financial/2008/fil08102.html

It says we can order stickers to put up next to the official signs and they have a one page document that it says you can display in your offices to explain the changes to consumers.
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#1058437 - 10/04/08 02:24 AM Re: FDIC Ins temp tp $250,000 Reads Regs
Jokerman Offline
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I wonder how the brokered deposit market will handle the temporary increase - will deposits of 14 months or less be available in $250M increments, or will they stick with $100M?

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#1058797 - 10/06/08 04:12 PM Re: FDIC Ins temp tp $250,000 Jokerman
#Just Jay Offline
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Originally Posted By: FDIC
In the meantime, insured institutions may post the above statement, or affix a sticker with the above statement, next to the official FDIC sign.


So, is it may as in you may post something additonal if you wish and here are some options, or may as in you must choose from one of these two options?

Also, for PODs... are we assuming 250k per owner per beneficiary?

Edited to add...
According to EDIE, yes!
Last edited by Just Jay; 10/06/08 04:29 PM.
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#1059664 - 10/07/08 03:03 PM Re: FDIC Ins temp tp $250,000 #Just Jay
Pickles Offline
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Living Trust account owners with more than $500,000 and more than five (5) beneficiaries named in the trust(s) are insured for the greater of either: $500,000 or the total aggregate amount of all beneficiaries' ownership interests in the trust(s) limited to $250,000 per beneficiary. Has anyone heard if the $500,000 limitation will increase on Living Trusts?
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#1059741 - 10/07/08 03:40 PM Re: FDIC Ins temp tp $250,000 Pickles
Jasmine Offline
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For revocable trusts with six or more beneficiaries, it will be insured to the greater of either $1,250,000 or the aggregate amount of all the beneficiaries' actual proportional interests up to a maximum of $250,000 per beneficiary.

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#1060031 - 10/07/08 06:00 PM Re: FDIC Ins temp tp $250,000 Jasmine
Pickles Offline
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Originally Posted By: Jasmine
For revocable trusts with six or more beneficiaries, it will be insured to the greater of either $1,250,000 or the aggregate amount of all the beneficiaries' actual proportional interests up to a maximum of $250,000 per beneficiary.


Where did you find that posted?
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#1060115 - 10/07/08 06:47 PM Re: FDIC Ins temp tp $250,000 Pickles
Reads Regs Offline
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There is information on this within EDIE. Click on the following link http://www.fdic.gov/edie/fdic_info.html#10 and then scroll down the page and look at the explanation under the bullet point for revocable trust accounts with six or more beneficiaries.

Also try this link http://www.fdic.gov/edie/fdic_info.html#11d and scroll down the page.

I also found similar wording on this page of the FDIC web site. http://www.fdic.gov/deposit/deposits/insured/ownership4.html#revocable It is the online version of the "Your Insured Deposits" brochure. Click on the link for revocable trust accounts and then scroll down the page and look at the section for living trust accounts. There is a section that has a series of bullet point items. The wording is from one of the bullet points.
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#1060121 - 10/07/08 06:53 PM Re: FDIC Ins temp tp $250,000 Reads Regs
Jokerman Offline
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Do you think it will be POLITICALLY feasible for the FDIC to reduce the coverage to $100,000 at the end of next year, or is this the new baseline?
single choice


Votes accepted starting: 10/07/08 04:00 PM
You must vote before you can view the results of this poll.

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#1060395 - 10/07/08 09:32 PM Re: FDIC Ins temp tp $250,000 Jokerman
StevenD Offline
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You mean the end of NEXT year. The temporary increase lasts until 12/31/2009.
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#1060399 - 10/07/08 09:35 PM Re: FDIC Ins temp tp $250,000 Reads Regs
The OG Zaibatsu Offline
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Originally Posted By: Reads Regs
There is information on this within EDIE. Click on the following link http://www.fdic.gov/edie/fdic_info.html#10 and then scroll down the page and look at the explanation under the bullet point for revocable trust accounts with six or more beneficiaries.

Also try this link http://www.fdic.gov/edie/fdic_info.html#11d and scroll down the page.

I also found similar wording on this page of the FDIC web site. http://www.fdic.gov/deposit/deposits/insured/ownership4.html#revocable It is the online version of the "Your Insured Deposits" brochure. Click on the link for revocable trust accounts and then scroll down the page and look at the section for living trust accounts. There is a section that has a series of bullet point items. The wording is from one of the bullet points.



Good find. I don't think they could have done any better job at hiding this information if they tried!
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#1060443 - 10/07/08 10:33 PM Re: FDIC Ins temp tp $250,000 Pickles
nbk2yj2 Offline
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The 500k is a floor limit for trust with assets over 500k with unequal beneficial interest. 500k or actual aggr. amount the greater of the two.

If the beneficiaries have equal interest it is 250k max per owner to bene. i.e one owner 7 bene 250k x 7 = 1.75mm

Anything 500k or less will be considered equal bene interest even if not.

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#1060533 - 10/08/08 04:28 AM Re: FDIC Ins temp tp $250,000 StevenD
Jokerman Offline
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Originally Posted By: StevenD
You mean the end of NEXT year. The temporary increase lasts until 12/31/2009.

Isn't that what I said? Oh well, if there's a mistake in there somewhere, you can't edit a poll anyway!

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#1060664 - 10/08/08 01:17 PM Re: FDIC Ins temp tp $250,000 #Just Jay
TrngMgr Offline
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Originally Posted By: Just Jay
[quote=FDIC]In the meantime, insured institutions may post the above statement, or affix a sticker with the above statement, next to the official FDIC sign.


So, is it may as in you may post something additonal if you wish and here are some options, or may as in you must choose from one of these two options?

JustJay, do we know yet if we MAY or MUST post these stickers? What's everyone else doing - waiting for stickers?
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#1060687 - 10/08/08 01:33 PM Re: FDIC Ins temp tp $250,000 TrngMgr
#Just Jay Offline
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I went ahead and had marketing create discreet professional table tents to display along with the curent signs.
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#1060716 - 10/08/08 01:47 PM Re: FDIC Ins temp tp $250,000 #Just Jay
TrngMgr Offline
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Yes I did the same. But I still wonder if it's something we are required to do? I can't see that it is, based on the wording of the changes to the coverage. But as you said earlier, is this may as in "do it", or is it optional? Another time to CYA, I guess.
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#1060720 - 10/08/08 01:49 PM Re: FDIC Ins temp tp $250,000 TrngMgr
#Just Jay Offline
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Basically was my thought as well.
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