With collapse of economy, FDIC might not be able to cover or pay insured money as bank go bankrupcy?

Some people says if economy go to depression and many banks go bankruptcy then even FDIC won't be able to pay insured money. Is that true? I’ve CD in wamu and CD is insured. Should I cancel with paying penalty and take out and transfer to other bank such as wells fargo?

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Answer:
“Some people” are wrong. Only about 1/3rd of the money in banks is actually insured by FDIC and they’re absolutely covered, by law, up to an aggregate of $100,000 per person per bank. No stocks or bonds are covered except for government bonds. Are you SURE your CD is insured by FDIC? The FDIC does NOT cover brokerage accounts or money market accounts, only easy checking and saving accounts and some other real bank accounts which use cash. Leave your money where it is.

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Answer:
Securities are covered to $500,000 including $100k in cash in brokerage account even if held by a bank. Bank held accounts covered $100k per account type. Not always just per person. … Report Abuse

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Answer:
Joint account, single account, trust account are 3 different account plating. Each of these can have $100k and are FDIC insured. Report Abuse

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Answer:
The FDIC cannot go BK. They’re backed by the full faith and credit of the US Gov. Any short fall of FDIC reserves would then be bailed out by the Treasury (aka the tax payer). If you think your money is in a bank, guess again. Banks only have to keep about 6 cents for each deposit on a daily basis Report Abuse

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