Is Your Bank at Risk of Failure?
November 23rd, 2007Via: Forbes/ABC News:
If your bank is failing, you probably won’t know about it. Regulators deliberately keep a pending closure secret to avoid a mad rush to remove deposits–a run on the bank, if you will. For one thing, a sale of the institution is often possible at the last minute, eliminating the need for federal intervention. But a buyer isn’t going to take on the deal if all the deposits rush out the door. For many customers, the first time they know their bank has been shut down is when their credit card gets declined or they walk to their branch and notice it’s closed.
Research Credit: PD
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