Jeff Dick
President and CEO
MainStreet Bank

If you've turned on the news or opened a newspaper in the last few days, you've no doubt come across a report on the safety of your investments as well as the safety of your bank deposits.  I noticed that The Washington Post recently focused on how you would go about getting your money out of your bank in the event it were to fail.

Reporters are questioning whether your money is safer in a big bank or a small bank.  They speculate that the Government would not allow large banks to fail, but will allow small banks to fall by the wayside.  

The fact of the matter is, there are nearly 8,500 FDIC insured financial institutions in the United States.  And yes, a few poorly managed financial institutions will fail.  But, short of a media-driven frenzy, banks and banking in the United States will persevere.

MainStreet Bank is well capitalized, and we have not and will not participate in the subprime loan and securities market. 

We offer normal FDIC coverage which protects your  account up to $100,000 and certain IRA accounts up to $250,000.  We can also assist you in properly structuring your accounts to provide additional FDIC insurance.  More importantly, we have the capacity to insure your deposits up to $50 million per account using the CDARS program.  Click here to learn more about the CDARS program.  

If you have concerns about your deposit account, please stop by or call us at (703) 481-4567 or (703) 218-5160.  We'll be happy to help you to ensure that your deposits are properly FDIC insured. 

ICBA Debunks Deposit Insurance Myths

Washington, D.C. (July 17, 2008)—The Independent Community Bankers of America (ICBA) is challenging unfounded concerns raised about the safety of bank deposits. Federal deposit insurance guarantees your deposits are safe in every financial institution insured by the Federal Deposit Insurance Corporation, including community banks. Don't believe the hype. Get the facts.

Myth: Your money is safer in big banks.
Fact: No one has ever lost a penny of FDIC-insured deposits held in community banks. The FDIC insures deposits up to $100,000 per depositor and $250,000 for certain retirement accounts. If you have more than $100,000 at a community bank, you can still be fully insured if your accounts meet certain requirements. For example, accounts owned by a single person are separately insured from joint accounts or retirement accounts owned by that person. The FDIC's Electronic Deposit Insurance Estimator can determine your coverage.

Community banks focus on the needs of local families, businesses and farmers, and their top executives are generally available on site to answer your questions directly and make timely decisions. Many of the nation's largest banks are structured to serve large corporations and have CEOs headquartered in office suites, not local banks.

Myth: Your money is stored in a vault at the bank.
Fact: Community bank deposits are reinvested in your local economy. Your money on deposit will be used to make loans in the community that help your neighbors start a nearby business, purchase a home, or send a son or daughter to college. Continuing to hold deposits in community banks ensures the neighborhoods where you live and work will continue to grow and thrive.

Myth: Community banks are undercapitalized.
Fact: The vast majority of our nation's banks, especially community banks, are strong, safe and stable. Community bankers are common sense lenders that don't engage in high-risk activities. Instead, they stick to the longstanding fundamentals of responsible banking, and always seek to serve the long-term interests of their customers and communities.

Myth: The FDIC takeover of IndyMac Bancorp means my bank is at risk.
Fact: IndyMac Bancorp was taken over because, in part, depositors became fearful and attempted to close their accounts at once, destabilizing the bank. The overwhelming majority of the nation's banks are safe and well capitalized. As stated by FDIC Chairman Sheila Bair, IndyMac is only one of nearly 8,500 depository institutions operating in the United States and represents just 0.2 percent of banking-industry assets. There is little chance your bank will be taken over by the FDIC. And if that does happen, you will continue to have virtually uninterrupted access to your insured deposits.

Myth: Community banks are involved in problems with subprime mortgage lending.
Fact: Community banks are common-sense lenders that have avoided subprime lending.
There is no mortgage-lending crisis for community banks because they are well-run, highly capitalized, tightly regulated and more risk-averse than big banks. Community banks have money to lend homeowners for new purchases and to refinance existing mortgages. In spite of talk of a credit crunch, community banks are open for business.

For more information on the safety of community bank deposits, visit ICBA's Web site.