Originally Posted by
bhmdiversion
Rumor has it that First Tennessee didnt want to release the funds because some of the banks (which I thought were FDIC insured) could not guarantee the funds being transfered in...??? I heard that this afternoon...
FDIC insurance has nothing to do with whether there are sufficient funds to meet withdrawal demands (payments / checks) of individual accounts - only that accounts will be made whole (up to a limit) in case banks can not honor demands due to lack of solvency or assets.