Bank failures really are nothing new

According to the Federal Deposit Insurance Corp., there were 563 bank failures from 2001-2023.

Despite the record headlines, banks have been failing for years. It’s nothing new. The largest one happened in September 2008 when the FDIC seized control of Washington Mutual Bank. That year 25 banks failed. Shortly after the recent two highprofile bank collapses, people’s confidence in U.S. banks declined.

So should we start stashing our money under the mattress? Put it all into investments?

As we read in the news, banks have been collapsing for years. I think we must do our research carefully about where to stash our cash. Also, we might consider finding a knowledgeable investment broker to recommend places to invest extra cash — a place where it’ll earn more interest or dividends than what banks currently pay.

Shortly after the recent bank bailout, I received a phone call from my bank inviting me to make an appointment with its investment counselor.

My first thought was that perhaps its executives think their bank will collapse and they want to protect their clients. However, since I keep all my money in my checking or savings accounts, I thought that perhaps it’s not as safe a place as I thought it was. Then again, how do I know that investing my hard-earned money in various companies will be safe?

I’ve always felt comfortable stashing my money in bank accounts, but now my thoughts have changed. Yes, I’ll see what the investment counselor has to say. Hopefully he’ll find a safe place to invest my money.

However, have I lost confidence in all banks? No. It seems like all sorts of businesses crash for one reason or another — from banks to grocery stores and everything else. Let’s be rational and not think the world is coming to an end because of these recent bank bailouts.