FDIC Coverage
FDIC Extends $250,000 Insured Deposit Limit Through 2013
On May 20, 2009, the Federal Deposit Insurance Corporation (FDIC) extended the current bank deposit insurance limit of up to $250,000 per account through December 31, 2013. On October 3, 2008, the basic deposit insurance limit was increased to $250,000 per account at any single bank and to $250,000 for certain retirement accounts. The increased deposit insurance limit of $250,000 was set to expire on December 31, 2009 before this most recent change. The deposit insurance limit will return to the standard $100,000 amount on January 1, 2014. To learn more, see this CB&H bulletin.
Business Owners Face Greater Challenges as Debt Collectors Buy Troubled Loans
The New York Times reports today on the difficulties that many small businesses are beginning to face as debt collectors buy troubled commercial loans at bargain prices from the F.D.I.C., which has seized 58 failed banks nationwide over the last 15 months. [T]he F.D.I.C. has made it a national policy to try to avoid foreclosures on the single-family mortgages it inherits from failed banks, even if payments are past due. But there are no such rules to protect struggling small businesses, whose loans are more typically sold at the F.D.I.C. auctions. Click here to read the article.
Turbulent Times Allow Small Businesses to Refocus on the Basics
Small and midsize businesses will feel the effects of the current economic downturn differently than large businesses, and often face greater risk as the small business owner is more fully vested in the business. At Cherry, Bekaert & Holland, we get daily questions from midsize and small business owners concerned with finances and the health of their business. Here is a list of tips and questions, provided by the AICPA , to help you and your businesses through these turbulent times: Don’t panic. It’s difficult to make sound decisions if you do. To get a better sense of where you stand,. Read More.
Banking Sector Concerns Prompt Review of FDIC Insurance
Given the current publicity about troubles in the financial industry, some of our clients have called with questions about Federal Deposit Insurance Corporation (FDIC) insurance as it relates to individual and commercial accounts. Industry experts estimate that there could be several hundred bank failures over the next two years, and depositors should be aware of FDIC coverage limits. Background An independent agency of the United States government, the FDIC protects depositors against the loss of deposits made in an insured bank should that bank fail. FDIC insurance is backed by the full faith and credit of the U.S. government. Effective. Read More.