Sunday, July 13, 2008

Who is Next?

This weekend news reports indicate IndyMac bank in Pasadena California was taken over by the FDIC. NBC news reported that 90 other banks are on the watch list. With the generous and risky mortgage loans that banks have become comfortable making may be coming to an end. It may be important for you to pay close attention to the financial condition of your bank. You can usually take a look at their financial disclosures, however, it doesn't tell you much unless you know how to interpret them. Even then, it isn't the most current information.

This is yet another reason to be doing business with credit unions. The banking industry has become a troubled industry that may no longer be a viable business. If it takes them issuing credit cards to people who are likely to default to stay in business, then something is seriously wrong. It is time to consider moving your accounts to your local credit union, it is less likely they are going to be in trouble unless they have been heavily marketing easy mortgage loans.

There are more bank failures on the horizon. Make sure you aren't a customer of one of them.

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