from your own quote.

Originally posted by mrmonsoon
However, these accounts will be insured up to $250,000 per depositor under the FDIC's general deposit rules. "

from the chase link

The standard insurance amount of $250,000 per depositor is in effect through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and certain other retirement accounts, which will remain at $250,000 per depositor. See a banker for more information.

$250k until 12/31/13 and then down to $100k

from your first post, regarding citibank:

Thus, after 12/31/09, funds held in noninterest-bearing transaction accounts will be insured up to $250,000 under the FDIC's general deposit insurance rules.

i guess I'll worry about this when I make more than $250,000.00

There is another angle to this that no one has touched on.

Currently, everyone believes this is a sign of the Banking Industry showing a Vote of No Confidence in the FDIC.

However, it could also very well be an attempt on the part of various Banks to evade Federal scrutiny of business practices.

The Banks thus far mentioned are Fee-based Banks. These are Banks whose primary profits are from nickel-and-diming people into oblivion with charge after charge after charge. Fee-based Banks are the ones to have caught the attention of Congress for their predatory practices.

If a Bank doesn't participate in voluntary Federal programs, they can claim Privacy and Trade Secrets to shelter their potentially unethical business practices to protect themselves from the scrutiny of Regulators.

To me, this isn't a bad sign about the FDIC as much as it is a sign that the Banks are determined to make a profit off of consumers at any cost.

the Transaction Account Guarantee Program through FDIC is an insurance for the full amount of the account whether it be $1 or $1,000,000,000 vs the standard fdic insurance which is currently $250,000 per account and later (re)downgraded to $100,000 per account.

I could see a bank carrying the extra insurance for an extra star on their rating to cover a lost one, but they may be at a point where they don't need it and are saving costs.

So, given that all the accounts there STILL have the $250,000 per account protection.. I have to ask.. what is the news here?

Originally posted by fraterormus

However, it could also very well be an attempt on the part of various Banks to evade Federal scrutiny of business practices.

The Banks thus far mentioned are Fee-based Banks. These are Banks whose primary profits are from nickel-and-diming people into oblivion with charge after charge after charge. Fee-based Banks are the ones to have caught the attention of Congress for their predatory practices.

If a Bank doesn't participate in voluntary Federal programs, they can claim Privacy and Trade Secrets to shelter their potentially unethical business practices to protect themselves from the scrutiny of Regulators.

To me, this isn't a bad sign about the FDIC as much as it is a sign that the Banks are determined to make a profit off of consumers at any cost.

That's exactly what I was thinking....they want to be free of the FDIC rules and regulations.

Does FDIC have a list of rules and regulations for their banks?

From what I undetstand, we're already starting to see the beginning of some very unscrupulous banking and credit card fees on the part of banks. Citibank is a big issuer of credit cards, so my guess is that they will be able to get by with even more than they are doing now if they aren't FDIC insured. JPMorgan Chase is also a big issuer of credit cards, and they also do a lot of car loans, etc...

My guess is that if they opt out of the FDIC, they'll be able to charge fees out the whazoo for any little thing, and get by with doing a lot of semi-unethical "gray area" banking area practices that they couldn't do before.

I don't know much about banking, but that's just the first thing that came to my mind.

[edit on 11-11-2009 by nikiano]