Wachoiva : Another Bank Failure and How it Affects You

Wachovia was seized by the government and on September 29, 2008, and was bought by Citigroup. Wachovia has 3,300 retail offices in 21 states with 40 international offices. Citigroup will pay Wachovia $2.1 billion to pay for its subordinated debt (a debt obligation whose holder is placed in precedence below secured and general creditors) which basically means the debts bought by Citigroup will be paid after Wachovia's secured debt and debt owed to their creditors is paid. It will also assume $53 billion of Wachovia senior and subordinated debt. The buy will make Citigroup the largest bank in the US. The buy should be complete by the end of 2008.

Wachovia states that "Customers of both companies should continue banking as usual, and feel confident that their deposits are secure. Also, employees and vendors should continue to operate business as usual."

To down play the severity of the buy of Wachovia by Citigroup they use terms that the average consumer may not understand. When you visit the Wachovia website a blurb states "Wachovia announces bank subsidiary divestitures to Citigroup."

What does this mean? I am a customer of Wachovia and it saddens me that messages like this appear. Press releases and other messages should be explained in a manner so that all customers of Wachovia understand exactly what the buy by Citigroup means to them.
Divestitures are the sales of business holdings of a company. Citigroup purchased the retail bank, corporate and investment bank and wealth management businesses (divestitures) of Wachovia.

Wachovia investors will receive approximately $1 of Citigroup stock for each of their Wachovia shares of stock. For now, it appears that it is business as usual at Wachovia so don't take your money out of the bank.

Some Wachovia bank branches may close within the next year when Citigroup takes over the 3,300 retail offices. This will have a devasting effect on the Charlotte area where Wachovia is headquartered.

I advise all Wachovia customers to keep an eye on their account balances and monitor the behavior of your local branch staff to see if they started acting differently or see if you can pick up on hints about the health of the company.

Get Your Equifax Credit Score for Free

Get a free Equifax credit score for a limited time. Visit equifax.com/freeficoscore for more information.

How the Merrill Lynch Buy Affects You

The recent buy of Merrill Lynch by Bank of America over a week ago supposedly kept Merrill from failing and filing for bankruptcy. Merrill Lynch has billions of dollars in bad debts from the sub-prime market. Merrill Lynch posted loses for the past 4 quarters and has wrote down $40 billion in loses.

The buy of Merrill Lynch was originally valued at $50 billion but reduced to a final purchase price of $40 billion.

It is shocking how the deal occurred in just 2 short days. It makes one wonder how can a deal be that sound if it occurred in that short amount of time. Bank of America’s interest in Merrill was due to Merrill Lynch’s investment banking services. Both companies offer different products and services to their customers which could cause a potential problem in the future.

For investors, Bank of America would exchange 0.8595 shares of Bank of America stock for each Merrill Lynch share of stock. If you currently have investments in Merrill Lynch now is the time to diversify your portfolio to protect yourself from severe market losses. However, don’t make any drastic changes.

The Securities Investor Protection Corporation protects cash and securities, such as stocks and bonds held by customer at a financially troubled brokerage firm but does not protect you the same as the FDIC. Check with your financial advisor to see what options are available to you.

Remember, it’s now what happens day to day, it’s how long you stay in the game. Your money double every 72 months so just ride it out.

How the Fannie Mae and Freddie Mac Bail Out Affects You

The collapse of Freddie Mac and Fannie Mae that occurred on September 7, 2008 occurred because of company greed and consumer responsibility. Company greed led mortgage industry professionals to lure unsuspecting consumers into loans they could not afford and would not be able to maintain. Greed and responsibility led consumers to believe they could afford a home out of their price range and still be able to pay all their other bills. Consumers are partly to blame for the following reasons:

1. Believing everything a mortgage professional tells you without verifying the information
2. Buying a house you know you could not afford
3. Not reading the fine print on the mortgage documents
4. Lack of education about the home buying process
5. Forging documents (income, number of years on a job etc.)

Fannie Mae and Freddie Mac are partly to blame:
1. Allowing illegal mortgage loans to be approved
2. Approving consumers for homes they could not afford
3. Not developing plans to help consumers stay in their homes
4. Not being truthful with consumers during the home buying process
5. Not being truthful with consumers about the company's financial problems
6. Forging documents

Many of you may have considered or already purchased Fannie Mae and Freddie Mac stock. Don't. For each share of stock you buy, you will only get $.20 on the dollar, so if you buy 100 shares, you really only have 20 shares. Preferred investors with hundreds and thousands of shares will get $.50 on the dollar for each share owned.

Although the government is providing $200 billion to help Fannie Mae and Freddie Mac recover, it will take both companies several years to pay off the government loan. Share prices will not begin to rise a significant amount until the company begins to make a profit which could take years if at all.

Many of the mortgages Fannie Mae and Freddie Mac own will never be repaid which would have caused them to file bankruptcy if the government had not taken over both companies.

If you currently have a high mortgage interest rate or your ARM will expire within the next 6 months or year now is a good time to try to refinance. If you have bad credit, spend the next few months paying off debt and repairing your credit so you can refinance your home to ensure you remain a homeowner.

Since the government doesn't have the $200 billion on hand to bailout out Fannie Mae and Freddie Mac, someone has to come up with the money, who you ask? Us, the taxpayers by paying higher taxes. Show your frustruation, anger, disappointment and resentment during this year's election by demanding a change in how the government is run and how companies are run. One vote can make a difference.

There is one bright star as a result of the Fannie Mae and Freddie Mac collapse, executives of both companies will not get paid their the combined total $24 million severance pay.

Downpayment Assistance Ends 10/1/08

Please contact your state congressmen to demand that Down Payment Assistance programs do not end on October 1, 2008. Tell them to pass H.R. 6694.

Research by Zelman & Associates reports that 10-25% of potential homebuyers will have no way of securing homeownership without down payment assistance. Since 1997, downpayment assistance has helped more than one million families become homeowners. Between 1997 and 2005, $12.3 billion has been generated in taxes for state and local governments through the purchases of 150,000 homes.

A quote from Scott Syphax, President and CEO of Nehemiah Corporation of America praised some members of congress.

“Maxine Waters, Gary Miller, Al Green and Christopher Shays have demonstrated the willingness to understand all sides of this issue and the courage and leadership to follow their conscience. All those who understand the importance of working class American’s having their shot at homeownership, need to work together to encourage our elected officials to pass this bill.”

“There are dire consequences to America waking up on October 1st without downpayment assistance. In fact, 300,000 working class families will be locked out of homeownership in the next year alone.”

You can contact the following House Committee on Financial Services committee members to show your support for down payment assistance programs which have helped thousands of Americans achieve the dream of owning a home.

Chairman Barney Frank represents Massachusetts' Fourth Congressional District of the House Committee on Financial Services which oversees the country's housing and financial services including real estate, public and assisted housing. The Committee reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, Fannie Mae and Freddie Mac.

Democratic Members of the Committee are:
Rep. Paul E. Kanjorski, PA
Rep. Maxine Waters, CA
Rep. Carolyn B. Maloney, NY
Rep. Luis V. Gutierrez, IL
Rep. Nydia M. Velázquez, NY
Rep. Melvin L. Watt, NC
Rep. Gary L. Ackerman, NY
Rep. Brad Sherman, CA
Rep. Gregory W. Meeks, NY
Rep. Dennis Moore, KS
Rep. Michael E. Capuano, MA
Rep. Rubén Hinojosa, TX
Rep. William Lacy Clay, MO
Rep. Carolyn McCarthy, NY
Rep. Joe Baca, CA
Rep. Stephen F. Lynch, MA
Rep. Brad Miller, NC
Rep. David Scott, GA
Rep. Al Green, TX
Rep. Emanuel Cleaver, MO
Rep. Melissa L. Bean, IL
Rep. Gwen Moore, WI
Rep. Lincoln Davis, TN
Rep. Paul W. Hodes, NH
Rep. Keith Ellison, MN
Rep. Ron Klein, FL
Rep. Tim Mahoney, FL
Rep. Charles Wilson, OH
Rep. Ed Perlmutter, CO
Rep. Christopher S. Murphy, CT
Rep. Joe Donnelly, IN
Rep. Bill Foster, IL
Rep. Andre Carson, IN
Rep. Jackie Speier, CA
Rep. Don Cazayoux, LA
Rep. Travis Childers, MS

Republican Members of the Committee are:
Rep. Spencer Bachus, AL
Rep. Deborah Pryce, OH
Rep. Michael N. Castle, DE
Rep. Peter King, NY
Rep. Edward R. Royce, CA
Rep. Frank D. Lucas, OK
Rep. Ron Paul, TX
Rep. Steven C. LaTourette, OH
Rep. Donald A. Manzullo, IL
Rep. Walter B. Jones , NC
Rep. Judy Biggert, IL
Rep. Christopher Shays, CT
Rep. Gary G. Miller, CA
Rep. Shelley Moore Capito, WV
Rep. Tom Feeney, FL
Rep. Jeb Hensarling, TX
Rep. Scott Garrett, NJ
Rep. Ginny Brown-Waite, FL
Rep. J. Gresham Barrett, SC
Rep. Jim Gerlach, PA
Rep. Stevan Pearce, NM
Rep. Randy Neugebauer, TX
Rep. Tom Price, GA
Rep. Geoff Davis, KY
Rep. Patrick T. McHenry, NC
Rep. John Campbell, CA
Rep. Adam Putnam, FL
Rep. Michele Bachmann, MN
Rep. Peter J. Roskam, IL
Rep. Kenny Marchant, TX
Rep. Thaddeus McCotter, MI
Rep. Kevin McCarthy, CA
Rep. Dean Heller, NV

You can visit the Get Down Payment Assistance.com website to get more information.

6 Ways to Recession Proof Your Income

The Federal Reserve has dropped interest rates 2.25% points since August 2007. There were approximately 700,000 foreclosure filings in 2008. Congress is trying to combat the recession by giving Americans tax rebates. Oil prices are over $120 a barrel and gas is $4 or more a gallon. Food prices rose more than 4% from last year. With the high cost of gas, food, housing, utilities and travel costs you have to develop a plan to ensure you can sustain yourself through the current recession. Here are 6 ways to ensure you survive the recession.

1. Find stable employment – Many companies are having layoffs or reducing salaries or employee hours. To protect yourself, if you are a contractor or a seasonal employee try to find a stable job or get a part-time job to get additional income. Do research on a company to see their annual finance report, see what the company's plans are for the future and ask others if they have heard about the company to ensure you are working with a stable company. If you hear rumors of layoffs dust off that resume and start looking for a new job.

2. Reevaluate your finances – If you don't have health, life or disability insurance consider getting at least basic health insurance. Health costs are one of the biggest reasons for filing for bankruptcy and bad credit ratings. Get life insurance to at least cover funeral costs and cover bills for a few months.

3. Pay down debt – A balanced budget should consist of no more than 15% of your monthly income to pay monthly debt such as credit cards or student loan (this can vary based on your income and does not include rent or mortgage). Start small and pay off small bills first then work your way up to pay off larger debts. Double the minimum monthly payments when you can to pay down debt faster.

4. Create a budget or spending plan – create a budget and write down all of your monthly expenses and bills and your total monthly income to quickly see what you are spending your money on. Find ways to reduce expenses. Include savings goal in your budget and save enough money to cover at least 3 to 6 months worth of expenses.

5. Reduce Expenses – reduce your expenses one step at a time. Start small by taking your lunch to work, skipping that Starbucks Latte and bringing your coffee from home, use coupons or buy items on sale to save money. All these little things add up and will give you extra money to pay bills or pay down debt.

6. Don't avoid overdue bills. Many companies are desperate for money and may not follow the proper procedures to collect on a debt. They may file for judgment against you without ever notifying you. Call your creditors right away to setup payment plans to get current on old bills and prevent harassing calls or letters and damage to your credit report

Following these 6 tips will ensure you survive the current recession.

Check Out My Interview in the September Issue of Essence Magazine

Check Out My Interview in the September Issue of Essence Magazine page 108.

Harrine Freeman

Speaking to a Customer Service Rep May Cost You

Many people have complained over the years about dealing with a computer generated voice to answer questions or direct you to a customer service agent. Many companies opted to transfer calls to India or to other countries overseas to supposedly "save the company money". Other customers opted to use the http://gethuman.com/ website to find ways around the continual maze to reach a customer service agent for customers living in the US, England and Canada.

Well, now companies are fighting back. Some companies will now start charging a $5 fee if a customer would like to speak to a customer service representative or go to a customer service center to pay a bill or ask a question.

Some utility companies have eliminated the option of paying bills in person and have opted to use third party payment centers that will charge a fee that could be more than $5.

TMobile, Cablevision Systems and Cox Commmunications charges customers a $5 fee to speak to a customer service representative to pay a bill by phone. AT&T Wireless charges customers a $5 fee if they prefer to use a store clerk to make a bill payment instead of using a self-service kiosk. Comcast, Charter, Verizon Wireless and Verizon Telecommunications charge a smaller fee to pay a bill in person.

This election year is a critical year. This is the time to complain about issues that affect you, besides the main issues such as healthcare, the Iraq war, the housing crisis and the economy you can also complain about smaller issues such as how companies are taking advantages of customers charging outrageous fees to pay a bill by phone, if a bill is paid late, etc.

Write the company and complain, write your city council representative and write your congressman and let your voice be heard. You can also file a complaint against the cell phone and telephone companies with the Federal Trade Commission.

To avoid the fees you can pay your bill online but find out the security measures in place before signing up. Find out if your personal information will be encrypted, where it is stored and what happens if a security breach occurs - how are customers protected, etc.

You also have the option of switching companies and doing business with a company that doesn't show outrageous fees.

Decide on the option that is best for you.

Looking for People in Debt Aged 18-34 For Documentary

Taken from Peter Shankman

Current TV's (www.current.com) news department is producing a
half-hour documentary on young people in debt, how the economy
crisis is affecting us, and what our futures look like. The show
will be a look at various 18-34 year-olds around the U.S. who talk
about their experiences with moneywhether they are in debt or
trying to change their lifestyle so that they dont fall into debt.

We are trying to cover all ages and most major regions of the
country, and we are looking for someone who 1/lives in one of the
southern states, 2/ is between the ages of 27-34, 3/ is female, 4/
is not white, and 5/ in debt.


You can send all responses to:

Tracey Chang
Producer, Current TV
tchang@currentmedia.com

Or feel free to call:

office: (323) 308-4957
cell: (310) 980-5711

Current TV is a new cable network that airs in 50 million homes
around the U.S. and 12 million homes in the U.K. We also just
recently launched in Italy. Our network airs mostly news and
non-fiction programming for a target audience of 18-34 year olds.
You can learn more about our network at www.current.com

Upcoming Events

August 2008
August 23, 2008, Meet & Greet, Borders, 3304 Crain Hwy, #A, Waldorf, MD, 2-4pm

August 30, 2008, Interview with United Black Writers, Borders, Bowie, MD, 10am

September 2008
September 15, 2008, Financial Contributor, Heaven 1580AM, Todd B./The Breakdown, Lanham, MD 7am

September 16, 2008, Budgeting Basics Seminar, CAAB, 1801 K Street NW, Suite M100, Washington, DC

September 17, 2008, Credit Basics Seminars, Jin Lounge, 2014 14 Street NW, Washington, DC 6-9pm

September 20, 2008, Northern Virginia Community College, Fall Festival, Alexandria, VA, 11-3pm

September 26, 2008, CBC Author's Pavilion, Meet, Greet & Booksigning, Washington Convention Center, Exhibit Hall A Washington, DC, 1-3pm

September 27, 2008, Women's Empowerment Conference, Morgan State University, noon-1:15pm

September 27, 2008, Baltimore Book Festival, Booksigning, Baltimore, MD, 5-6pm

5 Ways to Keep Your Job

The number of unemployment claims of Americans laid off rose to 455,000 last week. This is the highest number of claims received since March 2002. Due to the recession, many companies are reducing benefits, work hours and laying off employees to cut back. Economists expect another series of layoffs by the end of this year. Here are 5 ways to keep your job and protect yourself from being laid off.


1. Update Your Resume. Update your resume and be sure to include all accomplishments you have achieved so far. Recruiters look for results so be sure to highlight yours.

2. Take a class. Take training classes related to your specific job to further your education. Keep your certificates in a file and provide a copy to your supervisor and Human Resources Department.

3. Volunteer. Volunteer for extra work assignments or to stay late to assist co-workers or your supervisor with high priority tasks. Ensure you supervisor is made aware of your hard work.

4. Feedback. Ask your co-workers and supervisor on feedback about your personality, strengths, weaknesses, and suggestions for improvement. Develop a personalized improvement plan and set deadlines to achieve each goal. Every 6 months provide a copy to your supervisor. This will be helpful if you receive annual performance reviews.

5. Work Ethic. Don't "borrow" or steal office supplies from work. Don't talk negatively about co-workers or your supervisor; you never know who may overhear you. Always arrive to work on-time and don't take regular extended lunch breaks or frequent days off. Limit internet use at work and use your cell phone for personal calls. Familiarize yourself with your Human Resources Manual or policies and ensure you are following them.

5 Inexpensive Foods To Slash Your Grocery Bill

During this recessions, Americans have been battling money issues and struggling to find money to pay for basic necessities. Gas for your car, housing and food are the major factors that have caused Americans to struggle.

If you are on a tight grocery budget, you know that you have to find creative ways to make you dollar stretch. Since last year, the price of dairy, bread and other products have increased. You can use coupons, buy items on sale, buy in bulk or shop at wholesale or discount stores like Costco, Food Lion or Sam’s Club to help save on grocery costs. If you eat out every day or multiple times a week, reduce that by 30-50% to save money. Try bringing your lunch to work or bringing your coffee from home and skipping the Starbucks. You can also purchase some inexpensive foods to cut grocery costs. Here are 5 foods that will help you save money.

1. Breakfast. Instead of buying sugar-coated cereal, replace with oat cereal or oatmeal along with a piece or fruit or toast.

2. Potatoes. Buy whole potatoes instead of instant potatoes. You can use the potatoes to make potato salad, mashed potatoes, baked potatoes, french fries, chips, sweet potatoes, pies, and more.

3. Nuts. Nuts can be used as a great snack instead of candy or junk food. Nuts are also healthy for you and are cheaper when bought still in their shell.

4. Fruit. Inexpensive fruits depending on the store can include watermelon, bananas and apples. They are also healthy for you and can help you lose weight.

5. Vegetables. Instead of buying packaged vegetables or pre-cooked vegetables buy raw vegetables and steam them or stir-fry them for a healthy alternative. Inexpensive vegetables include broccoli, greens, spinach and carrots.

4 Unusual Ways to Get Extra Cash

There are many ways to generate extra cash to: save for an emergency fund, pay down debt, pay for gas for your car or to just pay for basic necessities. Well, here are 4 unusual ways to get extra cash.

1. Hair. If you are a woman with long hair that has never been processed and you plan to get a shorter hairdo, you can donate your hair to Hairtrader.

2. Advertising. You can place an ad on a part of your body such as your face, neck, head or arms to help promote a business with companies such as eBay or Globat.

3. Donate Your Eggs. You can donate your healthy eggs for up to $2,500. Contact the Society for Assisted Reproductive Technology (SART) for more information. If you are up to it, you can become a surrogate mother for up to $25,000. Contact the Center for Surrogate Parenting for more information.

4. Participate in Studies. You can participate in studies for extra cash or donate your blood for science research. Contact Biotrax International for more information.

Bad Decisions to Eliminate Debt

Risky Solutions to Debt Elimination
Taking short cuts can lead to compounding woes

Taken from blackenterprise.com

By Zakiyyah El-Amin
August 1, 2008 -- If you are like most people, managing your finances isn't easy in today’s volatile market. As talk of recession threatens the U.S. economy, consumers are burdened with incomes that fail to keep up with inflation and expenses that continue to mount. Desperate for alternative ways to pay down debt, many rely on quick-fix solutions that often cause more harm than good.

Harrine Freeman, founder of H.E. Freeman Enterprises, believes that most people are simply trading one form of debt for another. “If you are already irresponsible with spending money, resorting to fast ways to get money is only a band-aid over the sore.”

The Bethesda, Maryland-based firm helps clients achieve their financial goals and educates them on how to prevent from falling trap to pricey habits. Freeman highlights a few common mistakes that can lead to further debt.

Use of Home Equity Loans
Many rationalize that this is effective because most home equity loans carry lower interest rates than credit cards and have interest that’s generally tax deductable. Understand that unsecured debt, such as credit cards, becomes tied to your home once this type of loan is used to pay it off. If you experience difficulties in making payments, you could default on the loan and risk losing your home. Since the amount that you can borrow is based upon your home’s value, as the value of your home decreases, so does your equity.

“Most people get a false sense of security once the debt is paid and end up accumulating more unsecured debt and putting themselves further in the whole,” Freeman adds.

Withdrawal from Retirement Plans
Tapping into your 401(k) jeopardizes your financial future. When you take money out of your retirement plan, you no longer benefit from tax-deferred compounding on the money withdrawn. Consequently, you have less money in your account working for you, which can lead to a smaller nest egg upon retirement. In addition, if you leave your job, you’re obligated to pay back the entire borrowed amount generally within 30-60 days. If you don’t, the unpaid balance will be treated like a distribution and you’ll owe taxes on the money and be charged a penalty.

Credit Card Cash Advances
Owning plastic comes with many bells and whistles. Credit card companies entice consumers with added features such as fraud protection, rewards, even cash. However, the likelihood of falling deeper into debt when using cash advances far outweighs the convenience of fast cash. If you pay off your balance in full at the end of the cycle, there’s no problem. Few understand that payments made to the credit card will first go toward regular purchases. Since cash advances carry higher interest rates than credit cards, problems arise when balances are carried over and both interest and fees compound.

Use of Debt Consolidation Loans

Debt consolidation is usually regarded as a credit cure-all that replaces multiple loans with a single loan resulting in lower monthly payments. However, the majority of consolidation loans only extend the pay-off period and do not carry lower rates. Since interest on consolidation loans is often higher than personal loans, mortgages and home equity loans, you actually owe more in the long run.

If you consolidate your loans, Freeman advises to use caution. “Many [debt consolidation agencies] are flooded with scams, and lenders who charge exorbitant fees and offer no real solutions to your debt,” she says. Some consolidators add fees directly to your monthly debt payments, without notifying borrowers of the charges. To help deal with debt, Freeman recommends that consumers establish a budget, develop a debt management plan, and consider credit counseling. Most importantly, use common sense by not spending money you do not have.

Show Your Support for DownPayment Assistance

The Department of Housing and Urban Development (HUD) has re-issued a proposed rule that would eliminate all private downpayment assistance programs.

Nehemiah has a long history of successfully advancing homeownership opportunities for homebuyers. For over 10 years, they have helped more than 290,000 families achieve their homeownership goals.

The proposed rule comment period ends on August 15, 2008. Submit a comment through our thge Nehemiah website to voice your support and let the Federal housing officials and your congressional representatives know how you feel about preserving private downpayment assistance as an option achieving your dream of becoming a homeowner.

How the Federal Minimum Wage Increase Affects You

The Federal Minimum Wage increased on July 24, 2008 to $6.55. This raised the minimum wage by $.70. Approximately 2 million Americans make minimum wage. This results in approximately an additional $5.60 a day, $28 a week and $112 a month for a 5 day work week. An additional increase will occur next year and raise the minimum wage to $7.25 an hour. Twenty-three states including the District of Columbia have a minimum wage higher than the new federal requirement which affects approximately 60% of American worker and are: Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Iowa, Maine, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, Washington and West Virginia.

The poor and middle class are greatly affected by the current recession. The minimum wage could not have come at a better time, however it is not enough. Many Americans are struggling just to make end meet and to buy basic necessities and have to use credit cards just to buy food and gas.

The average family is spending approximately $4,655 more on basic necessities such as food, housing and gas. Child care costs have also increased for those with children under age 5 to $1,508 a month and for after-care with older children to $622 a month.

Americans will have to find ways to reduce expenses and make their money stretch further. If you like to eat steak for dinner substitute it for chicken or fish, eat hotdogs and beans for dinner or breakfast food for dinner. Fix tuna casserole or other types of casseroles for dinner to save money on food costs. You can also shop at wholesale stores, buy items or sale, use coupons, carpool to work, shop at thrift stores or discounts stores such as Ross, Marshalls or JC Penny.

The key is to cut expenses in every area you can. You will have to make sacrifices to make ends meet but it is possible. Think of creative ways to save money by reusing items, holding a yard sale or bartering services with others who have businesses. It will take a lot of hard work and discipline to make it through these tough times but if you make it through you will know that you are a survivor. Good luck to you.

IndyMAC - How Does This Affect Your Part 2

The FDIC created a website to help IndyMAC customers to determine if their account is fully insured which will help answer customer questions about their IndyMAC accounts at http://www4.fdic.gov/dip/Account_Search.asp.

The FDIC was started in 1933 in response to bank failures. Types of accounts covered by the FDIC are: savings, checking, trusts, CDs, IRAs and other deposit accounts and are insured up to $100,000 per depositor in each bank or thrift the FDIC insures.

The FDIC insures deposits only. It does not insure securities, mutual funds or other types of investments.

Securities including mutual funds, that are held by a broker, or a bank's brokerage subsidiary are not insured. The Securities Investors Protection Corporation (SIPC), replaces missing stocks and other securities in customer accounts up to $500,000, including up to $100,000 in cash, if a member brokerage or bank brokerage subsidiary fails. For more information contact:

Securities Investor Protection Corporation
805 15th Street, NW Room 800
Washington, DC 20005-2215
202-371-8300

Check Your Bank's Rating

There is a FDIC bank "problem list" that is not published to prevent consumers from closing their accounts. There were reportedly 90 banks on the list as of the end of the first quarter. Those that receive a rating of 4 or 5 are put on the list (Reference from CNN Money)

However, with 5 large bank closings this year you may want to find out the rating of your bank. A rating of 1 is the highest, a rating of 5 is the lowest.

1. Go to bankrate.com and search for Safe Sound or Safe Scan
2. Then select bank or credit union
3. Search by institution name (select the first letter of the name of the bank) or search by other criteria

List of "Problem Banks" Taken from Bankimplode.com

Citigroup - $83.3B/$36B/$22.7B (7)
Posted on July 18, 2008 9:03 AM
Merrill Lynch - $47.25B/$34.4B/* (1)
Posted on July 17, 2008 8:36 PM
JP Morgan Chase - $11.0B/*/$6B (3)
Posted on July 17, 2008 7:15 AM
Wells Fargo - $2.9B/0/$23B (2)
Posted on July 16, 2008 12:40 PM
US Bancorp - $1.6B/*/* (0)
Posted on July 15, 2008 12:13 PM
National City - $200M (0)
Posted on July 14, 2008 5:45 PM
Lehman Brothers - $7.2B/$6B/$42 (2)
Posted on July 11, 2008 10:05 AM
Wachovia - $6.8B/$10.5B/$30.4B (4)
Posted on July 10, 2008 11:23 AM
Bank of America - $4.4B/*/$31.4B (4)
Posted on July 8, 2008 12:16 PM
Barclay’s PLC - $6.4B/$7.8B (0)
Posted on June 30, 2008 6:02 PM
HBOS PLC - $2.5B/$4B (0)
Posted on June 25, 2008 1:45 PM
Canadian Imperial Bank of Commerce(CIBC) - $6.7B (0)
Posted on June 23, 2008 11:44 AM
Morgan Stanley - $23.2B (0)
Posted on June 19, 2008 1:38 PM
Fifth Third Bancorp - $155M/$2B (0)
Posted on June 18, 2008 5:16 PM
Goldman Sachs - $6.2B (3)
Posted on June 17, 2008 5:15 PM
Washington Mutual - $1.6B (2)
Posted on June 14, 2008 5:35 PM
Royal Bank of Scotland - $3.6B/$24B (2)
Posted on June 4, 2008 5:34 PM
Societe Generale SA- $13.7 /$8.5B (0)
Posted on June 4, 2008 3:08 PM
BNP Paribas SA-$2.5B/ $0 cash (0)
Posted on June 4, 2008 2:39 PM
UBS - $45.0B/$41.5B (2)
Posted on June 1, 2008 11:22 AM
Royal Bank of Canada - $1.4B (0)
Posted on May 29, 2008 6:07 PM
Bank of Montreal (BMO) - $611M (0)
Posted on May 29, 2008 1:02 PM
Mizuho MFG - $5.4B (0)
Posted on May 22, 2008 2:09 PM
Bayern LB - $9.8B (0)
Posted on May 19, 2008 7:42 AM
WestLB AG - $4.8B (0)
Posted on May 19, 2008 7:35 AM
Natixis - $3.4B (1)
Posted on May 19, 2008 7:31 AM
HSBC Bank PLC - $6.6B (0)
Posted on May 19, 2008 5:32 AM
Credit Agricole SA-$13.8B (0)
Posted on May 12, 2008 5:18 PM
Credit Suisse - $5.95B (0)
Posted on May 2, 2008 5:20 PM
Deutsche Bank - $18.6B (1)
Posted on May 2, 2008 5:19 PM
Mitsubishi Financial Group - $760M (0)
Posted on April 23, 2008 12:54 AM
SunTrust - $718.7M-$1.5 B (1)
Posted on April 13, 2008 6:33 PM
Bank of NY Mellon - $118M (0)
Posted on April 9, 2008 11:19 AM
Sovereign Bancorp - $1.580B (0)
Posted on April 8, 2008 1:29 PM
IKB - $12.91B (0)
Posted on March 20, 2008 8:13 PM
DZ BANK AG - $2.1B (0)
Posted on March 7, 2008 9:52 PM
HSBC - $26.5B (0)
Posted on March 5, 2008 5:25 PM
Commerzbank - $855M (1)
Posted on February 15, 2008 9:48 AM

Sources: Bankrate.com, CNN Money, Bank Implode

Check to See If Your Bank is On Bove's List

As of March 31, the FDIC put 90 banking institutions with $26.3 billion of assets on its "problem list." This list did not include IndyMac, which had about $32 billion of assets, and close to $19 billion of deposits.

On July 12, 2008, Dick Bove, a veteran banking analyst for Ladenburg Thalmann & Co., released a report entitled "Who Is Next? The report states that the banking system as a whole "is not anywhere near the danger that existed in the late 1980s and early 1990s despite all of the whining by public officials."

The report includes a list of banks and thrifts that are in the "danger zone." Bove ranked the list of 107 banks and thrifts with more than $5 billion in assets by two measures of risk which represent about 79% of the banking industry assets.

Some of the institutions listed were: Flagstar Bancorp, Downey Financial, Bank United Financial, Corus Bankshares, Doral Financial, IndyMac Bancorp, FirstFed Financial, Oriental Financial Group, Washington Mutual, BFC Financial, FirstBanCorp. and Santander BanCorp.

Washington Mutual released a statement, On Monday, to dispute Bove's list saying it had recently raised $7.2 billion in capital. "The company significantly exceeds all regulatory 'well-capitalized' minimums for depository institutions. In addition, WaMu has current excess liquidity of more than $40 billion and a national franchise with approximately $150 billion in retail deposits," it said.

More than 300 banks could fail in the next three years, said RBC Capital Markets analyst Gerard Cassidy, who had in February estimated no more than 150 banks.

Five banks that have failed thus far in 2008 are: IndyMac Bank, Pasadena, Calif., Douglass National Bank, Kansas City, Mo., First Integrity Bank, NA, Staples, Minn., ANB Financial, NA, Bentonville, Ark, Hume Bank, Hume, Mo.

Check to see if you bank is on Bove's list by searching on google and clicking on the link .pdf file from dealbreaker.com.

Also check to see if you bank is FDIC insured by calling 1-877-275-3342 or visit the FDIC website and click on the Bank Find link under the Consumer Resources section to search for your bank.

How to Save Money With Coupons

With the economy on a down-slide today, it is most important that we consumers save money as best as possible. One way of doing this is through an old reliable method known as "Coupon Clipping". There are many ways of obtaining coupons today and sacrificing the time to do so is well worth the savings. One way is investing $1.50 by buying the Sunday paper.

There are loads of coupons and what is great is that most coupons do not expire for months. Furthermore, you may use them at other places besides the supermarket. Places of acceptance CVS, Target, Kmart, etc. Now for the places such as Sam's Club, they do not accept manufacturer's coupons. But all is not lost, they have a mailing list of their members and mail out their own coupons.

Other places to obtain coupons are directly from the stores via the Internet and CVS has set up little kiosks within their stores. All you have to do is swipe your CVS card and coupons print right out and the other great part is that you do not have to use them that same day. Get on the coupon emailing and postal mailing lists, Valupak, does this via the Internet and postal mail for establishments within your area.

I get coupons for the salon, car wash, home repairs, etc. Going to the dealership to have maintenance done on you car can be expensive, not if you are on their mailing list. You can receive coupons for low cost or free oil changes, free 10-20 point inspections, 10-20% percent off of repairs and so forth.

These savings can add up all it takes is a little time and you can spend $150 per week and save almost $100. Beware of groups and clubs that want you to pay for your savings, what you pay them per month to receive their services you can get for free. Other savings come in the form of registering your email address with companies/stores you shop at on a regular basis. They will email you the latest sales and coupon codes for extra savings. Stores that do this are: Macy's, J C Penney, CVS, and so forth. Some will even send you links to receive free samples.

Example of how I make coupons work for me. On a Sunday night while relaxing and watching television I sit down with my coupons, weed out the expired ones, take out the coupons I will need, and clip fresh coupons from the Sunday paper. I have a small plastic portfolio that I keep in my car all times just in case I stop at the store. I went shopping at the CVS last month, I did what I call coupon shopping. That is only buying what I had coupons for, items that I need. My total came to $95.00, with my CVS card and CVS coupons and manufacturers coupons my new total was $40.00. That is a savings of $55.00. Furthermore, I was able to obtain more CVS bucks.

I am a single woman and I need to save has much as possible. Furthermore, don't forget to refinance, this is advice from Harrine Freeman. Refinancing has also saved me money. Well until next time, clip coupons and save, save, save.

Teri Ghaffaar
ebonytulipcollection@gmail.com