This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Is Your Cash Safe at the Bank?

As furious IndyMac (IMB) customers waited on long lines to withdraw their funds on Tuesday -- four days after the government took over the insolvent bank -- clients of other banks have begun to worry about the fate of their cash as well.

Regulators seized IndyMac on Friday, after a run on the bank evaporated more than $1.3 billion in deposits and pushed the bank over the edge of insolvency. IndyMac had already been struggling under the pressure of liquidity issues and the tanking housing market.

Some customers became irate when informed that only up to $100,000 in personal funds would be federally insured, and those waiting outside a branch in California's San Fernando Valley were threatened with arrest, the Associated Press reported.

The Pasadena, Calif.-based bank is the second-largest to fail in the history of the Federal Deposit Insurance Corp., and while every retail bank is not on the brink of disaster, it's unclear what might happen in the months ahead.

The FDIC has a list of 90 banks in trouble, while according to data compiled by Ladenburg Thalmann analyst Richard Bove, just a few small banks hold enough bad loans to be in danger of failing. Those include Downey Financial (DSL), Corus Bankshares (CORS), Doral Financial (DRL), FirstFed (FED), BFC (BFF) and BankUnited (BKUNA).

Washington Mutual (WM - Get Report) was the only major national bank that Bove called "on the edge" of the "danger zone."

Still, there are sure to be more bank failures ahead as the industry struggles to contain problems from housing and mortgage assets as well as escalating credit costs. Considering that IndyMac was not even on the FDIC's list of banks in danger, there's no sure bet on which will make it out alive.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DSL $16.89 0.30%
DRL $0.11 0.00%
WM $54.03 0.09%
AAPL $118.03 -0.71%
FB $105.41 -0.31%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs