Question by  bravesfan (61)

Why are so many banks in danger?

Is there a list of which banks are safe?


Answer by  triciag (128)

Banks are in danger because of their lending practices. Banks lent money to people who, in many cases, could not reasonably be expected to be able to make the required payments. As people default on their loans, the banks are forced to eat this loss. The FDIC website has a list of banks that are considered in danger of failing.


Answer by  tamarawilhite (17883)

Many banks are in danger because they made loans to people who could not repay them or because they bought mortgage backed securities for which they have no actual assets.


Answer by  Att4372 (1704)

Many banks lent to borrowers who can't repay their loans. Banks got higher interest, but now can't collect on the principal. Generally, local banks with careful lending policies are safe. With thousands of banks, you can probably only get a list of risky ones and hope non-listed ones are safe. Pick a local US bank and stay under $100K.


Answer by  John (9008)

There is no exact list of which banks are safe, although your deposits up to $250,000 are insured at any FDIC bank(most banks are members). Many banks are currently in trouble due to making bad loans that have now defaulted; this mostly happened in real estate.

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