Some of your money in your bank may not be covered by federal deposit insurance. Some banks cannot even determine how much that amount is, all of which is the topic of an excellent article in the Wall Street Journal (see below for link). This concerning fact is mentioned in an article in the Wall Street Journal which points out some specific data about particular banks, which may rightfully make a lot of people nervous. For example the article says that the Provident Bank said in February that its uninsured deposits were $5.0 Billion. That amount went down but up again to $5.3 Billion on December 31.
The Federal Deposit Insurance Corporation exists to protect the public that deposits funds in banks from bank financial problems such as the Silicon Valley Bank failure. In that bank, according to the Journal article, 88% of the deposits were uninsured at year end. technical the FDICC is a U.S. Government Corporation which supplies insurance to commercial and savings banks. According to the FDIC, “since its start in 1933 no depositor has ever lost a penny of FDIC-insured funds”
The FDIC monitors the percentages of the banks funds that aren’t covered by FDIC insurance and hopefully those percentages will be posted more prominently so that depositors, including commercial clients, can know in advance what their risk is. Meanwhile, Kudo’s to the Wall Street Journal. Here is the full article: https://www.wsj.com/articles/some-banks-struggle-to-report-uninsured-deposits-correctly-29971652?mod=Searchresults_pos1&page=1
JEFFREY NEWMAN IS A WHISTLEBLOWER LAWYER WHO HANDLES CASES IN THE SEC WHISTLEBLOWER PROGRAM AND UNDER THE FALSE CLAIMS ACT. HE CAN BE REACHED AT JEFF@JEFFNEWMANLAW.COM
