what does it mean when a bank gets shut down

[laundrybag]

yesterday i saw on the TV that a bank in flordia just got closed by federal regulators, it also said this is the 17th bank to close/fail

what does that mean for the people that had money in that/those banks?

my dad has 150,000 in a bank. what indicators do i need to look at to see this happening to his bank to enable me to warn him to get his money out

thanks

[yeti]

Your father needs to make sure that every penny of his cash is guaranteed by the FDIC. Most only guarantee up to $100,000. Some forms of deposit have no guarantees.

[laundrybag]

i just talked to my dad. he said he was just to the bank and talked to them on friday
and that they said it was insured up to 250,000

i didn't believe him so i called the bank to ask some general questions
they said that fdic just within the last month upped their insurance to 250,000
they also said that if the bank does go under that he would still be able to use his debit card and personal checks just as normal

anyone have any input on this?

[B4Time]

First off I would not leave it all in the same bank,all your eggs in one basket so to speak.If it was me I would have a house safe with at least 20 g's in it.Next i would look into credit unions or small local banks.These people had to do business the old fashion way and quite a few are in good shape just check and make sure they are sound

[Irishbutterfly]

Quote:First off I would not leave it all in the same bank,all your eggs in one basket so to speak.If it was me I would have a house safe with at least 20 g's in it.Next i would look into credit unions or small local banks.These people had to do business the old fashion way and quite a few are in good shape just check and make sure they are sound

I would very much agree here. Some people are even saying open accounts in foreign countries and convert to that countries currency. That seems a bit far fetched to me, but that is what is being said. I myself would separate into separate accounts for the time being. Put it in bonds or something also may be an idea.