Think the FDIC Means Banks Failures Are a Thing of the Past? Think Again!!

Think the FDIC Means Banks Failures Are a Thing of the Past? Think Again!!

I don’t know about you, but it seems that most people regard bank failures as a thing of the very distant past. Many somehow believe that the existence of the Federal Deposit InsuranceCorporation (FDIC)   means that banks simply cannot fail. The thing is, in reality, that’s not the case at all; in fact, the complete opposite is true. The FDIC’s very existence is due to the fact that banks continue to fail to this very day.

 
I believe this misperception about the security of American banks is due to the fact that most of us tend to automatically equate the “Member FDIC” sign that most banks proudly display to mean they’re immune from failing.  Besides, when was the last time you heard or read about the failure of a bank? Rare news, right?  Well, here’s some news you may have missed.


Did you know between January and December of 2011, as many as 92 banks failed? That’s an average of eight FDIC takeovers per month last year. However, that’s better than 2010, when the number of bank failures was 157. And in case you’re wondering, 140 banks went under in 2009. So we’re talking 389 bank failures in America – yes, these United States – in just the last three years.


Is this surprising information to you? What do we really expect in an age when who wore what to the Golden Globe Awards or who’s divorcing whom is considered more important news than personal finance facts?


Hey, for the record, I’m all in favor of whatever stories any news outlet wants to feature. That’s up to the reporters and their bosses (and it’s unlikely they’d give a damn what I think anyway). 


However, based on the way things are going, I strongly believe that if you’re not really careful, you could be totally blindsided by what is really important to your financial well being. Take control of your financial destiny – start by staying smart and informed!
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Contact a financial professional at Laser Financial Group today to schedule your complimentary, no-obligation consultation to assess your savings and retirement goals. Get savvy information from advisors with a proven track record! 877.656.9111 or LaserFG.com.