Thursday, September 25, 2008

What Happens to Your Money When the Bank Goes Under?

A friend of mine and his wife were worried this afternoon. They had money in Washington Mutual and my friend -- before the latest news on WaMu -- was worried that the thrift would be seized and his money would be frozen for a while. Meanwhile, hours after we discussed his banking situation, regulators seized Washington Mutual, making it the biggest thrift to fail. JP Morgan will be purchasing the bank. But what about my friend's money? Here's an answer from the FDIC:

"For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," FDIC Chairman Sheila C. Bair said. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning."

--as quoted in the LA Times

Liz Pulliam Weston at MSN Money provides an overview of what happens when your bank fails. Here's the piece:

Bank crisis: 10 things to know now

Here are a few stories:

JPMorgan Chase buys Washington Mutual

10 ways to protect your money now

What if your bank is seized?

Here's how to buy my new book:

@ Barnes & Noble
@ Borders

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