Monday, October 6, 2008

Join Failbank, We Have All Time Super Low Rates!

Ever received a pre-approved credit card application from a failed bank? I have! I got one on Friday from Washington Mutual, the latest in a string of failed US banks for 2008.

For the current season rankings, check out the FDIC page on Failed Banks. They list all of the failed banks since October 1, 2000. A failed bank is where the FDIC steps in and does its thing. FDIC insurance is available to nationally and state-only banks, so some of the banks in the list are state only. You can easily tell when you see who shut them down. A national bank is shut down by either the Office of the Comptroller of Currency or the Office of Thrift Supervision. OCC regulates nationally chartered banks. OTS regulates nationally chartered savings and loans. By today's laws, there's not much difference in what you can do at either (that is, you can have a checking account at either type and you wouldn't know it on the surface).

You'll see that Washington Mutual was shut down by the OTS on September 25, 2008. On October 3, 2008, I received a pre-approved Visa application from WaMu. It didn't look like an application. I used to bank at WaMu back in Atlanta, so I thought this was something telling me that WaMu is now JPMorgan Chase and that possibly I still had some account open there. No, it was a stupid credit card application.

Go, failbank!

No comments: