It was the wrong thread

[Hank Chinaski]

the though has been floated around my firm that we should increase the frequency of bonii due to the fact that "banks are failing" so we should keep our deposits low. paranoia or good sense?

[Atticus Grinch]

Originally posted by Hank Chinaski
the though has been floated around my firm that we should increase the frequency of bonii due to the fact that "banks are failing" so we should keep our deposits low. paranoia or good sense?

I say paranoia. I've read your posts, and I suspect your firm's cash account is fully FDIC insured.

[Hank Chinaski]

Originally posted by Atticus Grinch
I say paranoia. I've read your posts, and I suspect your firm's cash account is fully FDIC insured.

conf to AG: there's the problem. our bank opted out of FDIC, they say they pass the savings on to us.?

conf to everyone else: my first question was semi-serious.

[Greedy,Greedy,Greedy]

Originally posted by Hank Chinaski
the though has been floated around my firm that we should increase the frequency of bonii due to the fact that "banks are failing" so we should keep our deposits low. paranoia or good sense?

You know your bank - there are some I'd worry about.

There are some places where there are state bank insurance plans that fully cover deposits. Moving to a smaller state bank might give you full insurance. It also may be possible to use an investment account that will put the funds in securities that you own, rather than just in an account. Most large pots of money don't sit in depository accounts. But then, the idiots who don't manage their money have done a lot better than the stock market lately, no?

[Hank Chinaski]

Originally posted by Greedy,Greedy,Greedy
You know your bank - there are some I'd worry about.

There are some places where there are state bank insurance plans that fully cover deposits. Moving to a smaller state bank might give you full insurance. It also may be possible to use an investment account that will put the funds in securities that you own, rather than just in an account. Most large pots of money don't sit in depository accounts. But then, the idiots who don't manage their money have done a lot better than the stock market lately, no?

a full in box does not imply popularity. instead, i take it as a sign of inattentiveness to detail.

[Greedy,Greedy,Greedy]

Originally posted by Hank Chinaski
a full in box does not imply popularity. instead, i take it as a sign of inattentiveness to detail.

I was just told a lot of people are moving uninsured funds around to community banks. I know a community banker who is very happy.

[dtb]

Originally posted by Greedy,Greedy,Greedy
I was just told a lot of people are moving uninsured funds around to community banks. I know a community banker who is very happy.

I know of at least one company that collects depositors' funds, and spreads it around by placing $100K many times at various savings banks throughout the country. They offer FDIC insurance for up to (I think) $50MM (it may be $100MM) for any individual.

[Not Bob]

Originally posted by dtb
I know of at least one company that collects depositors' funds, and spreads it around by placing $100K many times at various savings banks throughout the country. They offer FDIC insurance for up to (I think) $50MM (it may be $100MM) for any individual.

Any broker would be perfectly happy to sell you CDs issued by as many banks as necessary to cover the $100 G FDIC thing. Big Ed's sister in law at the Merrill Lynch in East Podunkville does that for me, and they have insurance on top of the FDIC limit.

Plus, I figure that if Uncle Sam lets Merrill go down, we have bigger problems. (Which is why I have Krugerrands, uncut diamonds, and AK-47s in a shelter in the back yard.)

[sebastian_dangerfield]

Originally posted by Not Bob
Any broker would be perfectly happy to sell you CDs issued by as many banks as necessary to cover the $100 G FDIC thing. Big Ed's sister in law at the Merrill Lynch in East Podunkville does that for me, and they have insurance on top of the FDIC limit.

Plus, I figure that if Uncle Sam lets Merrill go down, we have bigger problems. (Which is why I have Krugerrands, uncut diamonds, and AK-47s in a shelter in the back yard.)

Has anybody here dealt with the Fair Debt Collection Act? I have a client being sued under it. PM if you do.

[Hank Chinaski]

Originally posted by Not Bob
Any broker would be perfectly happy to sell you CDs issued by as many banks as necessary to cover the $100 G FDIC thing. Big Ed's sister in law at the Merrill Lynch in East Podunkville does that for me, and they have insurance on top of the FDIC limit.

Plus, I figure that if Uncle Sam lets Merrill go down, we have bigger problems. (Which is why I have Krugerrands, uncut diamonds, and AK-47s in a shelter in the back yard.)

a broke bank doesn't mena it's CDs are toast too? by the way, this is my question, and it has to do with liquid cash for a company.

dtb. perhaps you are focusing too much on grammar and not enough on the actual question asked?

[Mmmm, Burger (C.J.)]

Originally posted by Hank Chinaski
a broke bank doesn't mena it's CDs are toast too? by the way, this is my question, and it has to do with liquid cash for a company.

It's no different: CDs/cash. Instead of instructing bob to buy CDs tell him to get a depository account.

But why should a firm find itself in this position? If it pays bonuses on a given date it should buy treasury bills or other high-quality short-term bonds that mature on or about those dates. To the extent the bonuses are funded by current revenues, it could purchase those bonds on a cash/ongoing basis as needed (i.e., each time the account balance reaches $100k, purchase a tbill maturing in mid-December.).

[Not Bob]

Originally posted by Hank Chinaski
a broke bank doesn't mena it's CDs are toast too? by the way, this is my question, and it has to do with liquid cash for a company.

dtb. perhaps you are focusing too much on grammar and not enough on the actual question asked?

CDs have the same limit, as burger notes. The advantage of going to a broker at Merrill, UBS, or a smaller shop is that you can buy from different banks to make sure that each CD is protected. And then you have the additional protection of whatever insurance the b/d firm might have.

But that doesn't really answer your question, especially since CDs aren't liquid (yes, you can sell them, so they're not illiquid). I think that what I would do is to make sure that my operating account was never above $100,000 at any point. As Burger notes, you could buy short term treasuries with the excess, or have the funds swept to a money market mutual fund held at the fund.

If you're really worried, you could also just switch to a national bank. I doubt that BoA or Wachovia or Chase are at risk.

[LessinSF]

Some mighty funny lawyering in the North Face v. South Butt lawsuit.

[Tyrone Slothrop]

In the Supreme Court the other day:

MR. FRIEDMAN: I think that issue is entirely orthogonal to the issue here because the Commonwealth is acknowledging -
CHIEF JUSTICE ROBERTS: I’m sorry. Entirely what?
MR. FRIEDMAN: Orthogonal. Right angle. Unrelated. Irrelevant.
CHIEF JUSTICE ROBERTS: Oh.
JUSTICE SCALIA: What was that adjective? I liked that.
MR. FRIEDMAN: Orthogonal.
CHIEF JUSTICE ROBERTS: Orthogonal.
MR. FRIEDMAN: Right, right.
JUSTICE SCALIA: Orthogonal, ooh.
(Laughter.)
JUSTICE KENNEDY: I knew this case presented us a problem.
(Laughter.)
MR. FRIEDMAN: I should have — I probably should have said -
JUSTICE SCALIA: I think we should use that in the opinion.
(Laughter.)
MR. FRIEDMAN: I thought — I thought I had seen it before.
JUSTICE SCALIA: Or the dissent.
(Laughter.)
MR. FRIEDMAN: That is a bit of professorship creeping in, I suppose.

[sebastian_dangerfield]

Originally Posted by Tyrone Slothrop

In the Supreme Court the other day:

Anybody got a tight conflict of interest waiver allowing one to represent two defendants in a civil action?