No. of Recommendations: 1
Does Countrywide's latest troubles not keep you up at night?>

There is good reason to be concerned about Countrywide's solvency. If not for the FDIC insurance, I would never deposit at Countrywide, certainly not at this time.

It doesn't keep me up at night, because the FDIC seems to be quite efficient at transferring accounts to solvent banks, should the depository bank fail. Just a couple of weeks ago, NetBank, the first internet-only bank, failed, and its accounts were transferred to ING, without a hitch.

The reason Countrywide (and IndyMac) are offering above-market rates to attract depositors, when they are at risk of failure. That risk is very real. But, the FDIC protects me, so I'm comfortable. That being said, I keep a few months' operating funds outside of these shaky banks.

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