When a bank or a savings and loan institution fails the Federal Deposit Insurance Corporation (FDIC) steps in and is appointed receiver. The institutions assets are sold off and and return the unclaimed deposits to people that held accounts with them.
When a bank or a savings and loan institution fails the Federal Deposit Insurance Corporation (FDIC) steps in and is appointed receiver. The institutions assets are sold off and and return the unclaimed deposits to people that held accounts with them.
The creditors are the insured deposit holders and if the FDIC distributes any excess cash generated from the sale,to the deposit holders in the form of dividends, after expenses and reserves are. According to Edward Palonek, founder of Foundmoney.com, a company that provides information to Americans on where they may find lost or forgotten assets and cash, “some of these dividends become unclaimed because the FDIC does not have the correct address for the unclaimed account holder.” Foundmoney was the first company on the Internet to help people located these lost or forgotten money.
“This is quite common for accounts and dividend checks to remain unclaimed, since many of the account holders of the failed banks and savings and loans companies have been held by them for quite some time and the account holders move around and forget to inform the bank of their move. The dividend checks then end up getting returned since that person is no longer at the address the bank once had”, says Palonek.
The FDIC acts in two capacities. The FDIC or state regulatory agencies usually steps in and closes the doors to these failed banks, because the minimal requires are not being met. Generally speaking, a bank is closed when it is unable to meet its obligations to depositors and others.
The first capacity of FDIC is that of the insurer of the bank’s deposits. FDIC pays insurance to the depositors up to the insurance limit, which is $250,000. Anything over this amount is not insured by them. In its second capacity, the FDIC acts as a “Receiver” of the failed institution, just like in offer forms of bankruptcy. It then becomes the FDIC's responsibilities is to sell the assets to pay the depositors and its creditors.
The FDIC reports that, as of the end of May, 2012, there were 23 bank failures. There are an additional 7 ending June 15 of this year. Past year reports state that there were 92 bank failures in 2011, while 157 failures were reported in 2010. This far, 2012 is looking like a better year with fewer failurs, which most likely is attributed to a better economy in the USA.
According to Palonek, the trend of Bank Closures may be decreasing but there are still a great deal of unclaimed dividends and insured deposit monies from the previous years that have not been claimed. Some of these unclaimed accounts could amount to quite a few dollars which would go a long way in helping individual deposit holders pay down their loans, mortgages or overdraft limits.
Contact
Foundmoney at www.foundmoney.com
Edward Palonek at www.edwardpalonek.org