"Brent D. Gardner, ChFC" <bgardner20[at]cox.net> wrote in message news:<GEcrb.2335$643.541[at]okepread03> ...
- quote -

Your other alternative is to invest with a bank that is 'too big to
fail': really this can only be said to apply to the top 10 or so banks
in the US (Citigroup, Bank of America etc.) that would genuinely
threaten the economy if they failed. Although nothing is forever:
apparently solid banks like Continental Illinois went bust. Also for
foreign banks like HSBC/ ING, which are huge globally, you could
imagine situations in which they allowed their US subsidiaries to go
bust.

Remembering that Roosevelt closed the banks, and the UK government
unilaterally altered the interest rate on its debt (apparently for
consols they had a legal righ tto do this), we would say that nothing
is certain, but the survival of Citigroup in a form which ensures
depositors is fairly certain.

Remember if you buy government securities, that you may be taking on
interest rate risk ie if their term maturity is greater than one year,
say, the prices may be volatile down as well as up. Also most fixed
income securities currentlly trade (AFAIK) at a premium to face value:
therefore when they mature you get less capital back than you put in
(in the UK this is *not* normally allowable as a capital loss).


You can get more return without the bank
- quote -

and if I recall correctly, played a significant role in the Savings
and Loan debacle.

and a brokerage can 'package' a
- quote -

"Robert11" <rgsxrose[at]comcast.net> wrote in message
news:GaednW1WbsG21TCiRVn-hg[at]comcast.com...
- quote -

FDIC is for small savers. If you're worried about safety of principal, and
have more than you can put in local banks, you're probably better off with a
portfolio of government securities. You can get more return without the bank
shaving off some for their own pockets. Remember, FDIC pays you back with
your own money, because Uncle Sam has the power to tax to come up with funds
to pay claims. In that sense, it isn't insurance from the pure sense.

That said, brokered CDs aren't new, and a brokerage can 'package' a
portfolio of CDs from several banks granting you the protection you want,
but there are other risks involved, so it pays to read the fine print.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

Hello:

Saw the web pages on CEDARS, whereby one institution apparently can place
FDIC insured CD's
for sums over 100K, thus insuring the total for larger amounts than the FDIC
normally does ?
However, it's supposedly still FDIC insured ?

Have several questions, and concerns:

How does this actually work ?

If it's so practical an arrangement to FDIC insure for over 100K, why
doesn't
everyone with funds of these amounts, and wanting FDIC insured CD's, do it
?

There must be several caveats, or hookers, in this. Are there ?

Seems like not all that great a percentage of banks offer the processing of
them. Why ?

Safety of dealing with what is apparently a private organization (
Promontory Interfinancial Network, LLC. )
Who are they ?
Anyone provide any additional information on them, please ?

Thanks,
Bob