I have a fairly large (for me) CD that was through IndyMac. I have been told it is covered under FDIC, and that it will all be taken care of (by my financial adviser).
I completely trust my financial adviser, and know it'll all turn out OK. That being said, I am curious about the whole process of FDIC, and how it works with a CD. The CD was about 50% of the way to being mature. I am assuming I lose any interest I would have made, and simply get the principal back? I am also assuming that I wont have to pay any sort of penalty as it was not me who terminated the CD. Anyone who is in "the know" out there?
There is and endless chain of banks to acquire weaker ones, and ultimately, the Fed itself would step in, as the "Powers That Be" can't risk looking bad, or their illusion of strong currency might crumble.