Comments on: Software in the Public Interest October 2008 http://www.news.software.coop/software-in-the-public-interest-october-2008/233/ Updates seen at the co-operative for Software Sat, 04 Sep 2010 21:25:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: MJ Ray http://www.news.software.coop/software-in-the-public-interest-october-2008/233/comment-page-1/#comment-1935 MJ Ray Thu, 16 Oct 2008 16:24:52 +0000 http://www.news.software.coop/?p=233#comment-1935 I read over on http://www.co-opnet.coop/viewtopic.php?t=793#p2654 that Washington Mutual ("not very mutual") was "seized" by FDIC last month. News stories like http://www.tmcnet.com/usubmit/-uneasy-customers-pull-cash-from-washington-mutual-/2008/09/29/3675732.htm?p=news suggest that account holders were only slightly inconvenienced for a short while. BTW, as if that wasn't bad enough for WaMu, Microsoft want their licensing fees... http://seattle.bizjournals.com/seattle/stories/2008/10/06/daily20.html I read over on http://www.co-opnet.coop/viewtopic.php?t=793#p2654 that Washington Mutual (“not very mutual”) was “seized” by FDIC last month. News stories like http://www.tmcnet.com/usubmit/-uneasy-customers-pull-cash-from-washington-mutual-/2008/09/29/3675732.htm?p=news suggest that account holders were only slightly inconvenienced for a short while.

BTW, as if that wasn’t bad enough for WaMu, Microsoft want their licensing fees… http://seattle.bizjournals.com/seattle/stories/2008/10/06/daily20.html

]]> By: Jimmy Kaplowitz, SPI Secretary http://www.news.software.coop/software-in-the-public-interest-october-2008/233/comment-page-1/#comment-1876 Jimmy Kaplowitz, SPI Secretary Wed, 15 Oct 2008 15:12:41 +0000 http://www.news.software.coop/?p=233#comment-1876 It's not really a problem with the US system, at least for the amount of money within the insured limits. They just pass the accounts over to another bank and there's a delay of a few days at most, when we access our usual bank accounts under new ownership. If they can't find another bank to take it, the FDIC runs the bank itself until they can sell the deposits. They don't tie people's money up unavailably. It’s not really a problem with the US system, at least for the amount of money within the insured limits. They just pass the accounts over to another bank and there’s a delay of a few days at most, when we access our usual bank accounts under new ownership. If they can’t find another bank to take it, the FDIC runs the bank itself until they can sell the deposits. They don’t tie people’s money up unavailably.

]]> By: MJ Ray http://www.news.software.coop/software-in-the-public-interest-october-2008/233/comment-page-1/#comment-1874 MJ Ray Wed, 15 Oct 2008 14:54:30 +0000 http://www.news.software.coop/?p=233#comment-1874 Excellent point! One of the scandals locally has been that the UK FDIC-like plan (the Financial Services Compensation Scheme) hasn't covered charities (or small businesses), but I hadn't checked the US details. Unusually, the US banking system seems to be better than the UK one here. http://www.fdic.gov/news/news/financial/2008/fil08102a.html says that SPI's balance would be covered up to $250,000. So we're $100,000 away from this being a terrible risk. It still seems a good idea to split the accounts between banks, because compensation schemes can take quite a while to pay-out, which could hinder project support. Thanks for helping me check this out! Excellent point! One of the scandals locally has been that the UK FDIC-like plan (the Financial Services Compensation Scheme) hasn’t covered charities (or small businesses), but I hadn’t checked the US details.

Unusually, the US banking system seems to be better than the UK one here. http://www.fdic.gov/news/news/financial/2008/fil08102a.html says that SPI’s balance would be covered up to $250,000. So we’re $100,000 away from this being a terrible risk.

It still seems a good idea to split the accounts between banks, because compensation schemes can take quite a while to pay-out, which could hinder project support.

Thanks for helping me check this out!

]]> By: bd_ http://www.news.software.coop/software-in-the-public-interest-october-2008/233/comment-page-1/#comment-1872 bd_ Wed, 15 Oct 2008 14:11:26 +0000 http://www.news.software.coop/?p=233#comment-1872 Are non-profit organizations not subject to FDIC insurance? I know that'd only cover $100,000 of it, but if it applied you'd just need to move $50,000 to another bank and you'd be fine, right? Are non-profit organizations not subject to FDIC insurance? I know that’d only cover $100,000 of it, but if it applied you’d just need to move $50,000 to another bank and you’d be fine, right?

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