THE PHYSICIAN INVESTOR NEWSLETTER

HELPING PHYSICIANS ATTAIN FINANCIAL SECURITY
By Robert M. Doroghazi, M.D., F.A.C.C.

Safety of Your Money

Issue #Interim Bulletin #175B, September 21, 2011

The Safety of Your Money
    Moody’s today downgraded Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC). Goldman Sachs (GS) continues to melt, down 4.75 to close at 97.86.


    The world-wide financial system is weak. I suggest:
    1) Many money market funds have significant (40% or more) exposure to the commercial paper of European banks. I again recommend you confirm that your money market fund is in only US Treasury paper.
    2). Make sure that you are not above the FDIC limit at any bank. You are really courting disaster.
    3) If the bank where you have deposits is publically traded, monitor their stock price. If it is less than 5, consider moving your deposits. The current interest rates on CDs are so low, you may be better off busting a CD and taking the interest penalty to move your money to a safer bank. 

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