FairEconomist_IHB
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Nobody should have a 5M CD with any bank. If you have that kind of money, it should be mostly in brokerage or custodial accounts, invested. Vanguard would be a far better choice than IndyMac.
Siyonara Indymac
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Hard to believe a story that someone who could accumulate $5M would just slap it into a CD at a single institution. Even if I wanted to keep it liquid, it would with a professional wealth manager, who would be laddering CD investments like crazy across many many institutions...
That’s not far-fetched at all.
In fact, it’s common.
We hire professional money managers to handle our portfolios, while we direct the “cash” or liquid portion ourselves.
That’s what I do and know many others who do so as well.
If you direct that cash into a single institution, I'd have to say you were foolish, and I disagree that it is common... Once upon a time, I worked in the cash management group of a Fortune 500, and we managed a great deal of liquid capital on a daily basis. Mucho amounts of commerical paper mostly. We had those dollars at many institutions, for you Marshall boys I believe this would be referred to as risk management or risk mitigation, both domestic and overseas. Why put all your eggs into one basket either professionally or personally in terms of assets?
Too many variables to consider when anwering such a question... Depends on your investment expertise, risk tolerance, how highly you value your time, etc. etc. Personally, I'd have to have a cool mil before I'd start thinking about some professional wealth management. For many, I'd say they should use one if they had a couple of hundred.
This is what i've done. Unfortunatley its across 3 different banks with multiple accounts in each bank. Mostly big names. Although I'm VERY closely watching WAMU right now...(my wife convinced me ...)
good luck
-bix
It’s more common than you think.
The IndyMac fiasco was a huge wake up call to many including myself.
Has nothing to do with risk management.
Time = $$$.
It’s easy to get complacent and keep more money in one institution.
It’s a pain opening accounts up all over town.
I’m doing that right now with my accounts at Citibank.
Always thought of Citibank as a global institution and never pictured them failing.
Hit the search key and you’ll see I had a MM at IndyMac (great yield).
I closed it in June and moved to Everbank.
It felt like hassle at the time, and I almost didn't want to bother.
Glad I did.
Why wouldn't you do a joint account for $200K with your hubby if it's insured?
I'm a nervous nelly though. :coolsmirk:
ipoplaya_IHB
New member
FairEconomist said:
Hard to believe a story that someone who could accumulate $5M would just slap it into a CD at a single institution. Even if I wanted to keep it liquid, it would with a professional wealth manager, who would be laddering CD investments like crazy across many many institutions...
EvaLSeraphim_IHB
New member
Maybe he / she earned it flipping houses. Easy come, easy go. I don't recall the original poster saying it was in CDs, just that $5M was at Indy.
tenmagnet_IHB
New member
ipoplaya said:
That’s not far-fetched at all.
In fact, it’s common.
We hire professional money managers to handle our portfolios, while we direct the “cash” or liquid portion ourselves.
That’s what I do and know many others who do so as well.
ipoplaya_IHB
New member
tenmagnet said:
If you direct that cash into a single institution, I'd have to say you were foolish, and I disagree that it is common... Once upon a time, I worked in the cash management group of a Fortune 500, and we managed a great deal of liquid capital on a daily basis. Mucho amounts of commerical paper mostly. We had those dollars at many institutions, for you Marshall boys I believe this would be referred to as risk management or risk mitigation, both domestic and overseas. Why put all your eggs into one basket either professionally or personally in terms of assets?
ipoplaya_IHB
New member
Astute Observer said:
Too many variables to consider when anwering such a question... Depends on your investment expertise, risk tolerance, how highly you value your time, etc. etc. Personally, I'd have to have a cool mil before I'd start thinking about some professional wealth management. For many, I'd say they should use one if they had a couple of hundred.
biscuitninja_IHB
New member
ipoplaya said:
This is what i've done. Unfortunatley its across 3 different banks with multiple accounts in each bank. Mostly big names. Although I'm VERY closely watching WAMU right now...(my wife convinced me ...)
good luck
-bix
tenmagnet_IHB
New member
ipoplaya said:
It’s more common than you think.
The IndyMac fiasco was a huge wake up call to many including myself.
Has nothing to do with risk management.
Time = $$$.
It’s easy to get complacent and keep more money in one institution.
It’s a pain opening accounts up all over town.
I’m doing that right now with my accounts at Citibank.
Always thought of Citibank as a global institution and never pictured them failing.
Hit the search key and you’ll see I had a MM at IndyMac (great yield).
I closed it in June and moved to Everbank.
It felt like hassle at the time, and I almost didn't want to bother.
Glad I did.
EvaLSeraphim_IHB
New member
Reference: the SIPC thread.
fumbling_IHB
New member
Why not put all your money into a brokerage like Schwab? You can buy hundreds of thousands or many millions of riskfree Treasuries or virtually riskfree municipal bonds or AAA bonds of diversified companies like GE or Berkshire Hathaway, or if you really like CDs, you can buy them in $100K increments from different banks very easily and have each $100K increment completely FDIC insured.
fumbling_IHB
New member
Well, after reading the SIPC link above, I guess in a worse case scenario like what happened to ETRADE and their ill-advised subprime investments, customers of brokers could have legitimate worries like customers of Indymac. Hard to see that happening with Schwab, although anything's possible. It's like Wells Fargo cruising along past the carcasses of Indymac and Countrywide.
Trooper_IHB
New member
Source: FBI investigating Indymac for fraud
Say it ain't so....
In a written statement, the FBI didn't specifically comment on Indymac but noted that it is investigating 21 corporations in the subprime lending market for possible mortgage fraud.
Say it ain't so....
In a written statement, the FBI didn't specifically comment on Indymac but noted that it is investigating 21 corporations in the subprime lending market for possible mortgage fraud.
Anonymous_IHB
New member
WaMu wary of IndyMac cashier's checks
http://latimesblogs.latimes.com/laland/2008/07/wamu-refusing-i.html
http://latimesblogs.latimes.com/laland/2008/07/wamu-refusing-i.html
CalGal_IHB
New member
Personally, I wouldn't put more than $100k in one bank - no matter how you set up the accounts.stepping_up said:
stepping_up_IHB
New member
CalGal said:
Why wouldn't you do a joint account for $200K with your hubby if it's insured?
CalGal_IHB
New member
I realize a joint account for $200k is FDIC insured, but it still makes me nervous.stepping_up said:
I'm a nervous nelly though. :coolsmirk: