Could you recommend a good community bank with less risk of failing these days!. Preferably in Herndon VA.?I had a checking account in Wamu which I am afraid to use now for large transactions. I have been advised that community banks are safer in these troubled days in the banking world. I guess these are local banks. Could you suggest a community bank in Herndon VA area? Thanks. | |
They have already made it clear that all deposits are FDIC insured. It is only Wamus stock holders and creditors lost everything. Account holders money was just flipped over to JP Morgan.
JP Morgan is rated as super healthy which is evidenced by the fact that were able to buy Wamu in a heartbeat. They also divested a lot of their mortgage business pre meltdown. So you money is safe where it is.
Citibank is a good one because they are the largest bank on the planet. For them to go down would require a planetary economic meltdown. Let me put it this way..... when the US government needs money or has to make transactions Citi handles most of it.
ING is the bank that it highest rated and is sitting pretty out of all of them. Well before this was all on the horizon they got out of mortgages and high risk loans so have been unscathed. I hope you ever made that decision got a huge bonus.
Not so sure about the whole community bank thing. It might make more sense to stick with a bigger bank. A small bank has less margin for error.So if their loans fail they would be more likely to be in trouble. You would still be FDIC insured of course but it might take some time to recover the assets. The government is not going to be in a big hurry to bail out a small bank as the bigger problems come first.
A company like JP morgan is not going to swoop in and buy it. It would not be like where JP simply changed the Wamu site to JP in one day with no impact upon the customer. A small bank would not have the assets, locations or infrastructure to interest a large bank.
Either way if you make large transactions and have considerable assets you should spread your money among several different banks.
Since WaMu has been taken over by JP Morgan Chase, your money will be safe where it is.
