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FDIC Consumer News - Fall 2001
Special Report on FDIC Insurance
5. Sorry, that is incorrect.
The correct answer is "True."
BANK CDs PURCHASED THROUGH A BROKER. Some people who buy bank certificates of
deposit
(CDs) from brokers focus on what may be an attractive interest rate but don't
pay attention to which
institution issued the CD or whether the money was fully insured... until the
bank fails. Among the ways
people have gotten into trouble: Different brokers sold them CDs at the same
bank (most likely because
that bank was offering very high interest rates) and the total was more than
$100,000. Or, a broker sold a
customer a CD from the same institution where that person made deposits
directly, and the combination
of accounts went over the $100,000 limit.
See
full story...
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