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bank story

Scorpio

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#1
Heard a story about a bank, a credit union, about an hour from me.

It was stated that the bank closed down for 6 days. During that period they were supposedly changing over computer systems.

Meanwhile, no one had access to their accts, could not withdraw money, could not pay bills. Basically could not do normal banking business.

Now anyone here understands that this just isn't a acceptable way of doing business. A prudent company would have 2 live systems while the new is tested live, then eventually flip the switch without ever missing a beat. My bank did that exact thing.

My speculation is two fold, either they are in deep doo doo, and the feds were in there going thru everything before the reopen, or they were hacked so bad that it was a security risk to be open at all.

Thoughts?????

Remembering it is a credit union and not a bank, so the rules are different for the 2.

I told the guy speaking with me, that he and anyone else should be getting the heck out of there, as nothing positive should come of it.

I failed to ask if there were noticeable changes in the website upon reopening.
 

Joe King

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#2
Was adequate notice given of the shutdown? Or was it suddenly announced just beforehand?
....but yea, the whole thing sounds weird. Nobody shuts down for a week just to change out computers. Especially not in a customer service oriented business like banking. It'd be done the way you described.
 

gringott

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#5
Get your money out of there.

Even if it is just stupidity, still a reason to leave.

I had all my money once upon a time in a Savings and Loan. They started acting a bit fishy, offering services they hadn't before, etc. I was very busy with my business and didn't pay attention. Then one day I detoured over to the S&L to withdraw some cash to buy poloriod film for work. The door was paddocked closed, with a sign from the Feds. Took over a week to get my cash out. In the meantime I had to borrow money from some Outfit people I did some [legitimate] business with in order to meet payroll and business expenses.

Sure opened my mind about trust and financial institutions. I have paid attention since then with every form of banking I do business with. This "closing" would have sent off alarm bells for me.
 

searcher

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#6
Sure opened my mind about trust and financial institutions.
Think back to stories about financial institutions you heard about during the Depression.
 

wallew

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#7
Sorry. STORY, AS PRESENTED IS FALSE. OR AT BEST, INCOMPLETE.

No commercial financial institution - BY LAW - can be closed for more than THREE DAYS. There are numerous case history as to WHY this law was passed, but unless a commercial financial institution is UNDER THE CONTROL OF THE GOVERNING BODY (in this case the NUCA) - they will be breaking several laws.

So either the story is wrong or this credit union was under the control of the NUCA. Saying "We're having computer problems" (even if true) does not allow them to NOT OPEN THEIR DOORS. Even when a bank changes names, it is not closed, generally speaking, more than two days to make internal changes, before opening their doors under new management - all within three days.

It's why all commercial financial institutions OPEN THE DAY AFTER THANKSGIVING.

THEY HAVE TO.

At least in this country.

Sorry, dem's just de facts.

Gringott,

And what you are saying is our system works.

YOU weren't paying attention, so when this institution failed, you had not gotten your money out in time to avoid the pain of waiting to get your money. That fact has caused you to be much more vigilant in keeping an eye on your money. So it was a lesson well learned.

BUT YOU DID GET YOUR MONEY EVENTUALLY.

Unlike Greeks (and many others) have not gotten ALL their money out and probably never will.
 

wallew

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#9
Buck,

Don't feel bad, MOST PEOPLE DON'T.

But me? I spent some time working IN that system. Three or four times. Never for more than year or so, as it's all I could take.

I WAS THE SQUARE PEG AND I DID NOT FIT IN THEIR ROUND HOLE.

I did learn way more than I bargained for.

While EVERYONE HATES the current system, kindly tell me WHICH BANKING SYSTEM has worked better for the people. And before you go off the deep end, please, PLEASE tell me who you want running your banking system.

Our politicians? Please. The US CONGRESSIONAL BANK was so poorly run, they literally had to close it. WHY? Because all those politicians discovered that they could write BAD CHECKS against their account and the BANK HAD TO PAY IT. Eventually it was closed.

While GREED is the problem. Comes in many forms and is ALWAYS the downfall of any idea.
 

GOLDBRIX

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#10
During that period they were supposedly changing over computer systems.

That there is the Bullshit Answer.
I do little contracting jobs on occasion with another retiree. He got us a contracts changing out computers for new programs at local CHASE Banks and Wells Fargo Offices.
Every place we went we started as soon as the branch was closed with one Manager or Assistant Manager staying on sight.
The latest we were at anyone site was 1:00am having connection issues.

I think someone thought that that credit union was their personal piggy bank. IMO
 

wallew

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#11
Goldbrix,
Yeah, as I said, 'the story is either false or at best incomplete'...

I installed the phone system at the Denver FRB almost forty years ago, it was their first automated phone system (back in 79-80). Interesting place for sure.
 

goldfanbrad

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#12
Individual branches of a financial institution can shut down for an extended time. As long as the home office processes electronic ACH's and drafts each day as required by law then the individual branches don't have to open the doors. Ever go to a college town around the Christmas holidays? Some branches on campus or next to campus close the entire week between Christmas and New Year's and sometimes longer. Of course it is posted in advance and happens every year.
 

wallew

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#13
Then it's NOT an actual 'branch'. It's a location that may have atm's for processing transactions, but if it IS an actual branch, THEIR ARE LAWS THEY HAVE TO FOLLOW.

SORRY, but I don't make the laws, I just know they do exist. So if they close for more than THREE DAYS, they are NOT a branch. SO SORRY.
 

searcher

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#14
Then it's NOT an actual 'branch'. It's a location that may have atm's for processing transactions, but if it IS an actual branch, THEIR ARE LAWS THEY HAVE TO FOLLOW.

SORRY, but I don't make the laws, I just know they do exist. So if they close for more than THREE DAYS, they are NOT a branch. SO SORRY.

Not trying to be funny (don't take this the wrong way) but I spent a little while trying to find this. Looked at the FDIC site under Laws & Regulations ( https://www.fdic.gov/regulations/laws/ ) and found squaduch.

Am I looking in the wrong place? If I am maybe you could point me in the right direction.

Thanks.
 

goldfanbrad

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#15
Then it's NOT an actual 'branch'. It's a location that may have atm's for processing transactions, but if it IS an actual branch, THEIR ARE LAWS THEY HAVE TO FOLLOW.

SORRY, but I don't make the laws, I just know they do exist. So if they close for more than THREE DAYS, they are NOT a branch. SO SORRY.

Sorry, this is just an old urban legend that some people believe. Unless you have a really weird definition of what a branch is. I consider a location that has a branch manager, multiple tellers, and multiple loan officers with a total staff of probably 15 to 20 employees a branch.
 

gringott

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#16
Sorry. STORY, AS PRESENTED IS FALSE. OR AT BEST, INCOMPLETE.

No commercial financial institution - BY LAW - can be closed for more than THREE DAYS. There are numerous case history as to WHY this law was passed, but unless a commercial financial institution is UNDER THE CONTROL OF THE GOVERNING BODY (in this case the NUCA) - they will be breaking several laws.

So either the story is wrong or this credit union was under the control of the NUCA. Saying "We're having computer problems" (even if true) does not allow them to NOT OPEN THEIR DOORS. Even when a bank changes names, it is not closed, generally speaking, more than two days to make internal changes, before opening their doors under new management - all within three days.

It's why all commercial financial institutions OPEN THE DAY AFTER THANKSGIVING.

THEY HAVE TO.

At least in this country.

Sorry, dem's just de facts.

Gringott,

And what you are saying is our system works.

YOU weren't paying attention, so when this institution failed, you had not gotten your money out in time to avoid the pain of waiting to get your money. That fact has caused you to be much more vigilant in keeping an eye on your money. So it was a lesson well learned.

BUT YOU DID GET YOUR MONEY EVENTUALLY.

Unlike Greeks (and many others) have not gotten ALL their money out and probably never will.

Yes, I got it, we sat on folding chairs in the parking lot and moved up a chair at a time. When I got to the window and presented my accounts, the well dressed man [some FedGov employee] asked me how I wanted it. I said cash. He said are you sure?. I said yes. He counted it out. It was a considerable amount. No problem. Yes I got my money back, but they will never get my trust back.
 

gringott

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#17
Think back to stories about financial institutions you heard about during the Depression.
Of course I had heard all the stories and read about them, my parents survived the Great Depression. But I suffered from that mental problem "it's different this time". I don't have that problem any more.
 

Howdy

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#18
There is probably very little media coverage of these incidents, as the media doesn't want people to lose faith and trust in their banks.
 

Mujahideen

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#19
FDIC will supposedly protect you up to 100k per bank account should the bank go belly up?
 

Buck

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#20
I think the newest amount is $250k, unless they dropped it again
 

wallew

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#21
F,

Try the NCUA... National Credit Union Administration

https://www.ncua.gov/Pages/default.aspx

just because it's a credit union doesn't mean there are NO laws pertaining to it. Just different laws, examined by NCUA examiners, etc...
 

wallew

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#22
Gringott,

THEY DON'T WANT YOUR TRUST.


JUST YOUR MONEY....

and I'll bet money they still do... NOT the S&L's as they all died. BUT some form of financial institution.

Unless you keep it buried in your back yard? Which I kinda doubt if you are still working. I'm retired, so it's different. I have NO MONEY. It all belongs to my wife.