Why I Closed my Money Market Account: 6 New Bank Failures in 4 States

On October 7th, we published this article that links to a list of 463 troubled banks. One of the institutions where I personally held a money market account was on the list. Taking my own advice I promptly closed the account. Today, as the number of bank collapses reaches an even 130, I feel a little bit vindicated in the decision.

According to the Wall Street Pit:

“Regulators closed banks in Georgia, New York, Chicago and Ohio on Friday, pushing U.S. bank failures to 130 this year. Assets of more than $1.4 billion and deposits of nearly $9.4 billion from the six banks were turned over to new lenders at a total cost of $2.384 billion to the FDIC’s deposit insurance fund, according to agency statements.

“The largest bank to fail was AmTrust Bank in Cleveland.”

AmTrust Bank, with “total assets of $12.0 billion and total deposits of approximately $8.0 billion,” formerly held some of my savings. Of course, the FDIC should successfully protect bank customers in the event of a bank failure. Regardless of how well it’s able to continue performing that service, I’m glad to not have to worry, or even think, about an AmTrust account today.

Read more details on the closed banks in the Wall Street Pitt’s coverage of US bank failures in Georgia, Illinois, New York, and Ohio.

The Daily Reckoning