Q: If a depositor had $100,000 in FDIC insured funds at Washington Mutual and $100,000 in FDIC insured funds at JPMorgan Chase prior to JPMorgan Chase’s acquisition of Washington Mutual, how much of the depositor’s funds are now insured by the FDIC after the acquisition?
A. For a period of six months, the total amount of $200,000 will continue to be insured by the FDIC. 12 C.F.R § 330.4 provides that the insurance on both accounts continues for a period of six months if the amount is held in a non-deposit account such as a checking or savings account. This gives depositors the opportunity to move their money into separate accounts so that the funds continue to be insured by the FDIC following the expiration of the six-month period.
Written by Benson Varghese. ♦ Contact Benson.♦ Have Res Ipsa Blog delivered to you.
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