banks
 

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

banks
 

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.

banks
 

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.

banks
 

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.)

Actual Question
 

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

banks
 

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?

banks
 

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.).

banks
 

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.

Re: The Gary Busey Helmet Protector Protector, which is too large for your screen.
 

Can you get insurance for your insurance for your insurance?

That new insurance will be a boon to people like Less.

Schadenfreude update.
 

Question
 

Someone on my blog is wondering if now is a good time to go to law school. Anecdotally, my boss's kid, a third year at South Texas, got a letter from the firm he clerked with telling him that they're not hiring anyone next year.

Other than that, I don't really have my finger on the pulse of how young associates and law students are holding up.

My general position on law school is "avoid like the plauge" but this person seems a) determined and b) doesn't really have an interest in big firms/salaries.

Re: Question
 

I say go ahead, but do it without incurring a ton of debt: night school while working.

Re: Question
 

I know very few lawyers who actually like what they do for a living. So my advice would be to think long and hard about what it is this person really wants to DO. And then try to figure out if lawyers actually do those things.

Re: Question
 

Unless they are independently wealthy and/or get a free ride (including living expenses) somewhere, the current lack of interest in big firms/salaries is really meaningless in the long run.

Re: Question
 

Agreed, and is the advice I give anyone I know who is considering it. However, in an economy like this, there are worse things to do than to hide out in school for 3 years.