Co-op and Condo Boards Are Wondering: Is Our Money Safe?
Co-op and condo boards across the country are worried about the safety of their money in the wake of one of the largest bank collapses in U.S. history. The Federal Deposit Insurance Corporation protects all deposits made up to $250,000, meaning the federal government promises that the taxpayer will bear no losses associated with the resolution of the banks. Banking, legal and property management experts believe that the boards’ banks of choice are most likely safe but strongly recommend having the property manager confirm a bank’s financial health before depositing the money there. Other financial specialists also advise Boards not to select a bank nobody has heard of or to look solely at the interest rates a bank offers when deciding. The key is to find a conservative bank that provides quarterly financial reports, at a minimum, to show its profitability and stability. Let us know your thoughts by leaving a comment.