Originally Posted by
midnightsun
So are we able to initiate a transfer to another bank account with no charge at this time, to get our money out?
Will we be able to just shut down the account if we don't want an ING account? I was planning on closing this account anyway.
The way it works is that once OTS deems the bank insolvent FDIC (which is an insurance) will determine which accounts are subject to the regulatory maximum which can vary. Once they figure out the amount that THEY owe you, your monies will be transfered to another instituion with arrear interest.
For excess monies NOT covered by FDIC the timing is a pain as OTS enters the bank, fires management and keeps creditors at bay. IF deemed not solvable they will disolve the assets and you would be a creditor (third in line, behind preferred stock and trust preferred issuances). This takes time especially if it is not fraud related bankruptcy.
The good news is that histroically 97% of bank insolvecies result in consolidation, but again it takes time to evaluate value and take over/purchase process. Rule of thumb is that if you exausted FDIC limits your in trouble, as the conolodiation may not be obligatory of redemption of excess FDIC non insured deposits, this is called purchaser goodwill to make you whole.
Good Luck