where do banks invest?

[Big Muddy rancher]

Sandhusker would your bank make out of state or out of country investment in order to make a return for your investors. Or is all you money tied up in one county?

 

[Sandhusker]

Banks are limited in where they can invest their funds. The FDIC is insuring the depositor's funds so they keep a pretty short rope on us. I can assure you this bank's funds are 100% in the good 'ol USA.

 

[Big Muddy rancher]

Would their be investments in companies that trade off shore?

 

[Sandhusker]

Would their be investments in companies that trade off shore?

I really don't know what banks can do overseas. Obviously the Chase Manhattans and Citicorps have interests all over the globe, but I don't know what restrictions they are under. There are probably additional requirements concerning credit qualty, ratings, etc.... They may even have to hedge the currencies. That is a whole other world that is over my head.

 

[agman]

Banks are limited in where they can invest their funds. The FDIC is insuring the depositor's funds so they keep a pretty short rope on us. I can assure you this bank's funds are 100% in the good 'ol USA.

Are you certain that you are not invested in a repackaged unit of foreign bonds? Just curious how you might know.

 

[Sandhusker]

Banks are limited in where they can invest their funds. The FDIC is insuring the depositor's funds so they keep a pretty short rope on us. I can assure you this bank's funds are 100% in the good 'ol USA.

Are you certain that you are not invested in a repackaged unit of foreign bonds? Just curious how you might know.

I don't think so. I've heard of this and that and seen this and that, but nothing that looked foreign to me. Granted, I've never looked deep as I haven't needed to, but I don't think we are into anything foreign.