Posts Tagged ‘stock holdings’
What happens to stock-as-collateral if your bank is taken over by the FDIC?
July 2nd, 2009
My dad took out a loan from a bank for the purpose of purchasing stock in another bank, and used his existing stock, plus what he just bought, as collateral on the loan. The lending bank is currently in possession of all his stock certificates, and has ,000 left on the loan (which is less than 1/10th of the value of the stock). It was announced last week that the FDIC is taking over the lending bank. Is he in danger of losing all of his stock holdings?
If you're new to FYInance, we're going to make it worth your while to subscribe to our FYInance RSS feed. It will keep you up to date, on your terms!
Posted in Financial Questions | 
Tags: collateral, dad, fdic, possession, stock certificates, stock holdings | 
2 Comments »