“There is no safer place than a bank for your money” said F. D. Roosevelt during the Great Depression. The recent wave of bank failures – of such entities as IndyMac, Washington Mutual, and Wachovia – added further doubts about the already poor financial climate. Is my money therefore safe? Thanks to the guarantee provided by the Federal Deposit Insurance Corporation (FDIC), the answer is fortunately yes.On Monday, January 26th, we invited Lori Honjiyo, Counsel Senior Litigator in the FDIC San Francisco Regional Office, to talk about the recent bank failures and deposit insurance. We all know the FDIC by name but this was the occasion to get an insider’s point of view on the multi-billion government bail-out plan (TARP Act) and discover the full role of this agency. Lori Honjiyo’s speech was not only comprehensive but also easy to understand for non-financial experts – giving concrete explanations on what really happens when a bank fails and the FDIC’s work to pay depositors back as fast as possible (...)
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