Are More Bank Disasters Coming?

Lots of ominous warnings in the air. Everyone seems to be predicting bank disasters.

Over at Mish's Global Economic Analysis there is this prediction -

I have said this summer of 2007 but it's worth repeating again: Citigroup will not survive in one piece. If Citigroup survives at all it will be a mere shadow of its former self.

And over at Housing Panic, Keith warns -

In my personal first-amendment protected opinion, WaMu will fail in the next few days. I have no financial interest in WaMu. I just want to make sure my readers, and their friends and family, know what's coming.

Meanwhile the Guardian is reporting -

U.S. banks may fail in far greater numbers following the collapse of the big mortgage lender IndyMac Bancorp Inc, straining a financial system seeking stability after years of lending excesses.

More than 300 banks could fail in the next three years, said RBC Capital Markets analyst Gerard Cassidy.

And how does the FDIC recommend customers insulate themselves from vulnerable institutions -

What Does the FDIC Insure?

The FDIC insures all deposits at insured banks, including checking, NOW and savings accounts, money market deposit accounts, and certificates of deposit (CDs), up to the insurance limit.

The FDIC does not insure the money you invest in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if you purchased these products from an insured bank.

Basic Insurance Amount Is $100,000

The basic insurance amount is $100,000 per depositor per insured bank. Certain retirement accounts, such as Individual Retirement Accounts, are insured up to $250,000 per depositor per insured bank.

Instead of just relying on the bank to make sure your money is insured properly, the FDIC has an insurance calculator.

Credit Unions are not FDIC insured, but don't fret they are insured by the National Credit Union Administration with the same insurance levels.