Customers Can Access up to $50 Million in FDIC Insurance Coverage at Virginia Commerce Bank
2008年8月5日 - 11:35PM
ビジネスワイヤ(英語)
Months of financial market turbulence, uncertain economic
forecasts, and the third largest bank failure in U.S. history have
unsettled many people, but consumers and institutions searching for
a safe haven for their money need to look no further than Virginia
Commerce Bank. Virginia Commerce Bank can offer each of its
customers access up to $50 million in Federal Deposit Insurance
Corporation (FDIC) insurance coverage � 500 times the standard
$100,000 that most banks offer � through a service named CDARS�
(pronounced �cedars,� like the trees). The FDIC has estimated that
the $32 billion IndyMac Bank, which failed on July 11th, left
approximately 10,000 uninsured depositors exposed. Together, these
depositors held almost $1 billion in uninsured deposits. �Although
Virginia Commerce Bank provides the ultimate safety and soundness
in banking services, FDIC insurance provides an additional safety
net,� emphasized Peter A. Converse, President and CEO of Virginia
Commerce Bank, �Since the FDIC�s establishment 75 years ago, no one
has lost money in an FDIC-insured account.� �With CDARS,
individuals can better protect their savings, and corporations,
small businesses, nonprofits and municipalities can invest their
money with the lowest risk,� Mr. Converse added. Also known as the
Certificate of Deposit Account Registry Service�, CDARS is a
deposit placement service created by Virginia Commerce Bank�s
Arlington neighbor, Promontory Interfinancial Network, LLC. VCB,
one of the top participating banks with Promontory, implements
CDARS through the following process: The customer makes deposits
through Virginia Commerce Bank and benefits from its consistently
high CD rates. The customer�s funds are divided into increments of
less than $100,000 to ensure that both principal and interest are
eligible for full FDIC protection. VCB arranges for the placement
of funds into CDs issued by other network banks in the CDARS
program. Those other network banks place deposits in the same
amounts into Virginia Commerce Bank, so that deposits stay local
for lending in the communities VCB serves. From the bank customer�s
point of view, CDARS is one-stop shopping. The customer works with
only one bank, signs only one agreement, and receives one interest
rate. Also, CDARS reduces paperwork to one monthly statement and
one 1099 at tax time. The American Bankers Association endorsed
CDARS in 2003, explaining that CDARS benefits not only depositors
but also banks and the economy. Deposits placed through CDARS meet
the pass-through insurance coverage guidelines established by the
FDIC. Established in 1988, Virginia Commerce Bank (Nasdaq:VCBI) is
a full-service, community bank headquartered in Arlington,
Virginia, with over $2.6 billion in assets. The Bank serves the
Northern Virginia and Fredericksburg markets with twenty-six
branches, a mortgage lending office and an investment services
department. For further information about VCB�s many services and a
map of convenient locations, please visit our Web site at
VCBonline.com.
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