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Why Banks Don't Like Fridays
July 25, 2008 4:05 PM
ABC News' Charles Herman reports: TGIF? Not for a bank in trouble.
Friday is probably your most feared day for a bank struggling to stay in business.
The
Federal Deposit Insurance Corporation, or FDIC, has a history of taking control
of struggling banks on Friday evenings. Perhaps it allows the government agency
time to review the bank’s books and make sure the doors can open for business
on Monday, albeit under new ownership. It might also be the hope that people
will be paying a little less attention to the news over the weekend.
Whatever the case, five times this year, the FDIC has assumed control of a bank. Five times, it has done so on a Friday:
Friday 1/25: Douglass National Bank, Kansas City, Mo.
Friday 3/7: Hume Bank, Hume, Mo.
Friday 5/9: ANB Financial, Bentonville, Ark.
Friday 5/30: First Integrity. Staples, Minn.
Friday 7/11: IndyMac, Pasadena, Calif.
So, if you were a bank officer struggling with huge losses and a surging number of defaulting loans, you might be a little bit worried today.
July 25, 2008 | Permalink | User Comments (10)
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That's a fine piece of writing my friend. Something worthy of ABC News.
Posted by: Dave | Jul 26, 2008 8:19:24 AM
MOST banks like Fridays, because that's when their deposit balances are the highest (due to many paychecks being deposited on Thursdays and Fridays).
Posted by: ellsbells930 | Jul 26, 2008 9:40:55 AM
You are so right! Remember in the 90's they closed the banks on Fridays.
Posted by: Judy | Jul 26, 2008 3:36:12 PM
Judy - what are you talking about? No banks that I know of EVER closed on a Friday UNLESS it was a banking holiday.
Posted by: ellsbells930 | Jul 27, 2008 7:45:43 AM
ellsbells930 I just read your comment. What I should have said was that the FDIC took over failed banks on Fridays after the banks closed for the day. In the 90's I worked for a bank that bought a failed bank. When the failed bank opened on Monday it had a new name.
Posted by: Judy | Jul 27, 2008 4:41:34 PM
I bank locally, staying away from the bigger banks. They are not user friendly and are more likely to go belly up, having to aborb the problems of their other branches. I feel sorry for all those people that are losing out.
Posted by: Julie Becker | Jul 27, 2008 9:52:14 PM
Welcome to The Bank of Friday. Low interest loans. On-line checking and savings. How my I help you?
Posted by: bingobum | Jul 28, 2008 12:10:44 AM
MOST banks like Fridays, because that's when their deposit balances are the highest (due to many paychecks being deposited on Thursdays and Fridays).
Nice try. A bank in hot water from bad loans won't have enough paychecks to make the balance sheets look good. Remember, people have to pay bills with said paychecks. Have a nice day.
Posted by: Larry | Jul 29, 2008 2:05:27 PM
WHY DON'T YOU TELL PEOPLE THE FDIC IS A PRIVATE INSURANCE COMPANY AND IS NOT
THE UNITED STATES FEDERAL GOVERNENT?
Posted by: anna | Sep 17, 2008 5:19:20 PM
Harbor Freight sells a nice "fire safe" with a combination lock; standing heat up to 1700 degrees for 1 hour at a cost investment of $139.00 (check online). If I was everyone, I would invest in a safe that you can secure to a floor (pry resistent) and relax knowing you can get your money at any time (day or night) if you wanted to. Then know the banks can do what ever they want, YOU got your money at your finger tips NOT them!!! Better to spend a little for a safe then to lose alot to someone else, plus a safe is re-sellable, it's NOT quick sand investment! BE YOUR own BANK and take care of YOUR own money and ride out the economic storm with your $$$$ (cash) in a safer place (with YOU)!
Posted by: Natalie | Mar 7, 2009 9:38:21 PM
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