Bank Of America lied about being FDIC insured

[BenRayfield]

I've had an account with Bank Of America for years. Soon after the last bailout, the FDIC withdrew all support for banks. In a Bank Of America branch, I asked them about their sign that said so. They confirmed, they are not FDIC insured, and no other bank is either. Today I went into a Bank Of America branch and asked about their sign saying $250,000 FDIC insurance for each account. I asked them when they started being FDIC insured. They said they have always been FDIC insured. I told them no your other branch told me ... (as I explained above) ... and they said no Bank Of America has always been FDIC insured. How can we trust a financial organization that lies about when money was insured? Did they commit some kind of fraud by telling me that my money was insured at times when it wasn't?

[1714894205]

1714894205

[1714894205]

1714894205

[1714894205]

1714894205

[1714894205]

1714894205

[1714894205]

1714894205

[1714894205]

1714894205

[mikethebodacious]

As far as I know all the "too-big-to-fail" (TBTF) banks have always been FDIC insured.  When banking laws change and the TBTF banks are no longer FDIC insured it's time to pull your money out before you lose it all, that is if we don't have a currency collapse first.

[Maged]

It doesn't really matter, since the FDIC insurance itself is a lie.

[JoelKatz]

Personal savings and checking accounts at major banks have been FDIC insured continuously for decades. I'm not sure who told you otherwise or why. Perhaps they were talking about something other than checking or savings accounts.

[Kermee]

I've had an account with Bank Of America for years. Soon after the last bailout, the FDIC withdrew all support for banks. In a Bank Of America branch, I asked them about their sign that said so. They confirmed, they are not FDIC insured, and no other bank is either. Today I went into a Bank Of America branch and asked about their sign saying $250,000 FDIC insurance for each account. I asked them when they started being FDIC insured. They said they have always been FDIC insured. I told them no your other branch told me ... (as I explained above) ... and they said no Bank Of America has always been FDIC insured. How can we trust a financial organization that lies about when money was insured? Did they commit some kind of fraud by telling me that my money was insured at times when it wasn't?

No offense to bank tellers or bank officers, but I think you're giving them more credit in the 'intelligence department' than they deserve, especially the ones you spoke to.

Most of the BofA branches were consolidated under FDIC Cert # 3510 recently.  Look for your 'Office' (Branch)...

Cheers,
Kermee

[koin]

Soon after the last bailout, the FDIC withdrew all support for banks.

huh?  where on earth did you get that?  deposit accounts at b of a are (and have been for many decades) insured by the fdic.

the fdic even partially paid off the accounts at failed banks that had funds that weren't insured (i.e. accounts that had exceeded the $100K limits that existed at the time).

perhaps you were seeing a sign describing products sold by b of a that are not insured?

What Is Not Insured?
Increasingly, institutions are also offering consumers a broad array of investment products that are not deposits, such as mutual funds, annuities, life insurance policies, stocks and bonds. Unlike the traditional checking or savings account, however, these non-deposit investment products are not insured by the FDIC.

http://www.fdic.gov/consumers/consumer/information/fdiciorn.html

edit: sorry, just noticed that this reply re-iterates what was already posted by joelkatz.

[Desolator]

This is ridiculous, the US gov not only maintained FDIC insurance but increased it temporarily and then extended that increase and I think possibly made it permanent.  FDIC insurance is one of the greatest financial program successes of all time.  The pool of money got so huge since no banks were failing that the premiums dropped ridiculously low and they had enough money to bail out a huge portion of all banks in the US at once.

Is this some BS fake news post to try and drive money into bitcoins to assist an investment of yours or something even stupider?

[zellfaze]

I work for a Credit Union.

As far as I know, all Banks have continued to be FDIC insured and all Credit Unions have continued to be CUNA insured.

Banks and Credit Unions pay an insurance fee every year, just like you do for your car, to get this insurance.  And just like your car insurance, they are required to by the law.

(Note: In MD cars are required to be insured to go on the road; other states may vary.)

[deepceleron]

(Note: In MD cars are required to be insured to go on the road; other states may vary.)

The insurance lobby has bought laws mandating the purchase of their product in every state: http://personalinsure.about.com/cs/vehicleratings/a/blautominimum.htm

[foggyb]

FDIC insurance is an inside joke. When a bunch of banks go bankrupt they call the FDIC, who call the Federal Reserve and orders up the printing of more dollars out of nothing.

There is no FDIC fund. There is no need for one when they can create dollars out of thin air.

If the FDIC was backed by gold (like it should be) that could be considered (IMO) a legitimate insurance policy.

[indio007]

It doesn't really matter, since the FDIC insurance itself is a lie.

THIS ^^^^^^^^

[zellfaze]

FDIC insurance is an inside joke. ... call the Federal Reserve and orders up the printing of more dollars out of nothing.

... they can create dollars out of thin air.

Remove a few parts from his post and it describes the entire US monetary system.

[chungenhung]

FDIC insurance is an inside joke. When a bunch of banks go bankrupt they call the FDIC, who call the Federal Reserve and orders up the printing of more dollars out of nothing.

There is no FDIC fund. There is no need for one when they can create dollars out of thin air.

If the FDIC was backed by gold (like it should be) that could be considered (IMO) a legitimate insurance policy.

exactly.
Even I can insure all the banks in the world if all i can do is print more money when needed.

[BenRayfield]

Even I can insure all the banks in the world if all i can do is print more money when needed.

Ok, lets do insure all the banks, backed by a second Bitcoin network called the FDICK we would boot up when needed to supply the numbers to bail out the banks.... Of course this money would be worthless, but we're still insuring them.

[silverchair]

How come they lied?

[JoelKatz]

How come they lied?

They didn't. Personal checking and savings accounts have been continuously insured by the FDIC without interruption for decades. It's also not clear *who* is being accused of lying exactly.

[Desolator]

they collect an insurance premium from all banks for the insurance and it exceeds their expenses so obviously they're paying out claims from that fund, not printing money for all claims.  And by the way, they usually print money when it was quite literally destroyed like in a flood or fire.  It covers that too and they should be printing money in that case because it was eliminated from the economy.

[Nagle]

Before the Glass–Steagall Act was repealed in 1999, banks had to stay out of the investment business. After repeal (which, in retrospect, was a big mistake), banks got into investment banking and started marketing investments to their customers. Those investments, unlike deposits, are not insured by the FDIC.

Some banks blur the lines between their banking side and their investment side. Around 2000, I had several million in Treasury bills in a BofA custodial account, the banking side of the business. BofA transferred those assets to their investment unit, against my explicit written instructions. I pulled those assets out of BofA for that. 

So you have to be careful to deal only with the banking side of a bank. They're required to state whether something is FDIC insured or not.

[coinonymous]

It doesn't really matter, since the FDIC insurance itself is a lie.

+1