Six Illinois banks failed today

I would agree. For the moment.

But if the pace of bank failures increases (and one or two of the giants fail), does the FDIC have trouble covering everyone? And in the instance people lose confidence in the FDIC, what then? Are we looking at massive runs on the banks?

 

I think they upped the max to $250,000.

 

My bank (Founders) was one of those six. I found out today as I walked back from dropping off my car at Firestone and noticed my bank had a paper sign over the "Founders Bank" sign, and thought it strange that I never got noticed of the bank being sold. There were papers up outside the bank with the press release of the announcement.

Fortunately, I'm in good shape because another bank (called, really, "The Private Bank") arrange to buy its the bank's assets. My debit/credit worked when I filled one van with gas, and got new tires for the other. So it appears I have nothing to worry about.

I'm still taking my checking account out of there, though. I had thought of doing that anyway.

 

Credit unions, people.

 

If you choose to put your money in an old mattress, don't throw out the old mattress. [/crossthread]

 

Turns out all six banks, led by the Founders chain, were owned by the same family. They own two more than remain open and under their control. But for how long?