Power Breakfast: Troubled banks quietly protect customers, Georgia jobless, water ruling, Supreme Court, health care

Here’s another interesting story out of the banking crisis — some institutions in danger of failing quietly helped customers protect their cash.

As Atlanta’s RockBridge Commercial Bank tumbled near collapse last fall, bank officials had more to worry about than saving their company, AJC reporter Paul Donsky writes.

The bank didn’t survive, but virtually all of its customers’ money did.

It’s a pattern that has held throughout Georgia’s banking crisis, Donsky reports. The state leads the nation in bank failures since 2008 with 30, but depositors have emerged relatively unscathed.

The biggest reason, of course, is that the Federal Deposit Insurance Corp. insures deposits up to $250,000 per account.

But even accounts exceeding that limit have largely escaped harm, Donsky writes. In many cases, all it took to insure all of a customer’s cash was for a second account to be opened, perhaps in a spouse’s name.

Also in the AJC:

In other media:

4 comments Add your comment

Joe

January 22nd, 2010
6:13 am

Dan

January 22nd, 2010
8:01 am

We have all had to deal with government operations to get our license, to deal with real estate taxes, get stop signs in the neighborhood and on and on. These are things that government is designed to do and things that they do well (when compared to other governmental agencies) Has ANYONE ever thought to themselves after dealing with one of the services mentioned above “Gee that was such a good experience maybe I should let them control my money” ????? I think more likely we left the experience with supreme confidence that a kindergarten class could do a more efficient job

TnGelding

January 22nd, 2010
9:11 am

Surely you jest. How magnanimous of them to double stick the FDIC.

Shake it off Unger

January 22nd, 2010
9:17 am

Are you kidding? What about their stockholders who lost it all.