Here are 2 "What If's?" I pondered yesterday that never would have crossed my mind even 6 months ago:
1. "What if WaMu fails while DH is overseas on one of his month-long business trips, like the one he's getting ready to go on? Will I have to wait until he gets back to recoup all of the money in our joint account? Should I have him sign some sort of PofA?" (Conclusion: Needless worry, silly nilly. According to the FDIC, when a bank fails and is not taken over, the FDIC sends account holders a check. If it's a joint account, the account balance is divided in 2 and checks are sent to both account holders. I have never had a problem depositing a check made out to DH, as long as I'm not asking for cash back or opening a new account. So ... I'll just take his check and deposit it in one of our other bank accounts.)
2. "What if WaMu fails this Friday? If I pay my quarterly estimated taxes to the IRS (due Sept. 15th) with my WaMu checking account, and the check gets sent back, will the IRS assess me interest and penalties? (Conclusion: Yea, this one has the potential to be a problem. But odds are pretty slim. When a bank is closed and not taken over, checks that have not cleared do get sent back marked "Bank Closed." Obviously, I'd need to send new payment to the IRS. But in spite of their bad rep, I have actually found the IRS to be pretty understanding when it comes to "unusual circumstances." If WaMu failed, that would not exactly be a secret; the folks at the IRS would know about it! Since paying the estimated taxes from a different bank account would have required a fair amount of money shuffling, I decided to go ahead and just pay using the WaMu check, and if need be I will throw myself on the mercy of the IRS and ask for an interest & penalty waiver.)
Is there anyone else out there who has not closed their WaMu account? (There probably aren't many of us. I went in to my branch last Friday afternoon to make a deposit. Normally Friday afternoons are busy at any bank with people cashing their paychecks. I was the only person in the branch the entire time.) If so, any odd questions like mine crossing your mind these days?
Sign of the Times: New "What If's?" to Ponder
September 11th, 2008 at 08:33 am
September 11th, 2008 at 09:15 am
For what it's worth, they have a pretty large regular deposit base, and I think that is doing well enough. So the core business is intact. I don't think WaMu will collapse. I'm not sure, but I don't think so.
But yeah, there's always FDIC.
September 11th, 2008 at 09:27 am
Actually, our CU is on pretty steady ground (no shady loans) BUT they did just buy out a struggling CU with lots of bad loans. I hope it pans out. Can't say I am thrilled - though so far it seems they have been rather cautious and doing rather well. (I can't say the same for GMAC but I don't keep money I need in the near future in there).
Anyway, BM's school was looking for volunteers to organize a savings program. Though I would love to be involved, I am not up to organizing at this point. I realized yesterday they had a table set up at the school and the savings accounts were for WAMU. I turned to dh and said if I was in charge I would have contracted with the credit union, thinking more of fees and such. (The CU is very large and very convenient - though admittedly WAMU is within walking distance, down the street - probably why they picked them). But then of course I thought to their current struggles.
Maybe the kids will get a lesson in FDIC insurance - hmmm...
September 11th, 2008 at 09:30 am
We have to pay estmated taxes too so I can understand your concern there. I am keeping tax money in a bank that has a 3 rating. I just feel better doing that because it is a money market and I can write 3 checks and transfer money out. You might want to think about that for the important bills coming due.
September 11th, 2008 at 11:32 am
I'm not going to close my WaMu account; we have our money spread around among a few banks so I know we'll be fine in case of a failure. (Also, I still have confidence in the FDIC.) The value of "what if" thinking is to think it through and decide if you can live with the worst case scenario. So far I can ... except for the IRS business. I will NOT pay my estimated taxes from my WaMu account again. I already have a note on my calendar for a week before I pay my January estimated taxes, reminding me to move funds if necessary.
MonkeyMama - I agree with you. I would not have chosen WaMu for a kiddie saving program!
Oh, but looking on the bright side if it does fail ... I will have plenty to blog about! (I promise to provide all the boring details, as I'm sure many of us are interested in what a customer goes through after a bank closure.)
September 11th, 2008 at 04:13 pm
September 11th, 2008 at 08:32 pm
We bailed on IndyMac Bank (closed our account) about a year before it failed, but we've decided to just hang tough with WaMu.
Well ... I just checked my accounts (checking & MMA) on-line and got my registers balanced (not something I normally do until the end of the month). Interest payments posted on the 10th. I have only 2 checks outstanding.
I hereby swear in front of all my SA friends that IF WaMu fails, I will N-O-T go stand in line outside of a branch. I understand that people do it because they feel a need to do something, but I also know it's a waste of time. I will patiently wait for the FDIC to mail me my checks. All I will do is call the IRS and xxx (the payee on the other outstanding check), to arrange alternate payment, and then I will start rate shopping to figure out where I will deposit my WaMu money.
September 11th, 2008 at 09:52 pm
If WaMu goes, I say if you are going to fail, fail early while FDIC can still cover it. Just like if you are going to panic, panic first while you can still see the exit.
And I promise to take pictures of the bank run.
September 12th, 2008 at 04:40 am
September 12th, 2008 at 10:11 am