Government to invest in banks, expand FDIC coverage
I received this email at work and thought that you all may be interested... it even gives the number of the FDIC if you were interested in more information:
The federal government today outlined new initiatives to strengthen markets
and the economy, including investing at least $250 billion directly into
financial institutions and temporarily expanding FDIC coverage on
non-interest-bearing deposit accounts.
The capital purchase program will use funds from the recently passed
Emergency Economic Stabilization Act, legislation that empowers the
Treasury to use up to $700 billion to provide greater liquidity in the
markets and promote overall financial market stability. The $250 billion
will be invested into some of the nation's banks, with about half of that
total going to nine major institutions, including Bank of America, JPMorgan
Chase and Citigroup. In return, the federal government will receive equity
stakes in these companies in the form of preferred shares.
In addition, FDIC coverage will be temporarily expanded to an unlimited
amount on all non-interest-bearing deposit accounts (which include all
checking accounts, excluding Interest Checking, Tiered Interest Checking,
Business Interest Checking and Analyzed Business Interest Checking) for the
next 30 days. Banks are able to extend this expanded coverage through Dec.
31, 2009 for a fee. This action by the FDIC is expected to benefit small
businesses by providing additional coverage for accounts through which they
manage their day-to-day operations.
Please review the following for key messages, and anticipated questions and
answers.
Bank of America continues to be one of the
most profitable banks in the United States
and has more capital than any bank in the
country.
We recognize the need for broad-based
solutions to the challenges currently facing
the financial system. We support the
Treasury’s capital purchase program and are
participating in it.
This action, combined with others in recent
weeks, can be expected to help increase
liquidity and support greater stability in
the markets.
Consumers should be confident in the safety
and soundness of Bank of America, which is
very well-positioned to continue to provide
the financial safety and stability customers
have come to expect.
Q: Why is Bank of America a primary participant in the Treasury’s plan to
buy preferred shares in nine U.S. banks?
The Treasury is investing in the nation’s largest banks in another,
complementary move designed to strengthen the markets, increase investor
confidence and lessen continued volatility. Nine financial institutions
have been identified thus far; others will follow.
Q: Is Bank of America in any financial danger?
Bank of America is one of the most profitable banks in the United States,
and has more capital than any bank in the country. We continue to be a
strong and powerful company, as evidenced by our recent announcement to
acquire Merrill Lynch.
Q: How are Bank of America customers and their accounts affected by the
announced changes in FDIC coverage?
All non-interest-bearing Bank of America deposit accounts (which include
all checking accounts, with the exclusion of Interest Checking, Tiered
Interest Checking, Business Interest Checking and Analyzed Business
Interest Checking) will be fully insured to unlimited amounts for the next
30 days. Banks are able to extend this expanded coverage through Dec. 31,
2009 for a fee.
Q: Does this impact all deposit accounts?
This only impacts non-interest-bearing accounts. As previously announced,
all other traditional types of Bank of America deposit accounts (interest
checking, savings, trust, money market, CDs) will be insured up to $250,000
temporarily through Dec. 31, 2009.
Q: When do the changes to FDIC limits take place?
Changes are effective as of Oct. 14, 2008.
Q: Do these increases in FDIC limits affect IRA accounts?
No. IRA accounts continue to be covered up to $250,000.
Q: Where can someone go for more information about FDIC coverage?
Customers can contact the FDIC at 1.877.ASK.FDIC (1.877.275.3342) or by
visiting www.fdic.gov
Q: What does this mean for Bank of America and Countrywide?
We continue to operate business-as-usual. We are a strong and powerful
company, and Bank of America and Countrywide accounts will continue to be
insured separately at both banks up to the FDIC limits.
NOTE: In times of financial stress, customers are more vulnerable to false
and malicious rumors circulated from a variety of sources, including the
internet. Increased vigilance is required by all associates to be aware of
possible rumors and false information that may cause customer concern.