Just out of curiosity... what happens when a bank goes bankrupt (assuming it is not bailed out)? Do the people who have cash in that bank lose it, or is it reimbursed up to the $250K federal insurance amount? And, what about debts you have with that bank?
I'm asking because there might be a domino effect. If one big bank goes down, it could affect a lot of other banks where many people moved their money to when they left WF or BoA. So, the above questions are in general for any bank.
Read your paperwork they update ever year. When you deposit money into the bank, you are “lending’ them your money. Basically you become a creditor (and low down on the totem pole!) when they go bankrupt.
Just out of curiosity... what happens when a bank goes bankrupt (assuming it is not bailed out)? Do the people who have cash in that bank lose it, or is it reimbursed up to the $250K federal insurance amount? And, what about debts you have with that bank?
I'm asking because there might be a domino effect. If one big bank goes down, it could affect a lot of other banks where many people moved their money to when they left WF or BoA. So, the above questions are in general for any bank.
Read your paperwork they update ever year. When you deposit money into the bank, you are “lending’ them your money. Basically you become a creditor (and low down on the totem pole!) when they go bankrupt.