Banking: Cash Flow Problem

Not so, according to one Money reader. "It was explained that this could not be done, being the banks policy," says Jane. "I answered it was outrageous that I could put cash in but could not take cash out and was charged $10 for the privilege of having a piece of bank paper." The bank, says Jane, insisted she had to take her money in the form of a bank cheque, costing her the $10. Jane invested $15,000 in a term deposit with the Bank of Queensland. When it matured she wanted to withdraw her money in cash because the Commonwealth Bank, just down the street, offered a better rate. Many term deposit holders might find themselves in such a situation right now. As institutions continue to find it difficult to raise cheap funding for the home loans they rely on as their deposit base.

TrustCo Bank Corp: Outstanding Free Cash Flow Covers High and Rising Dividend

The dividend was reduced on March 5, 2008 and again on June 3, 2009. This was due to the economic tidal wave that hit the entire banking industry. Just two years since the chaos, TrustCo announced it will be raising its dividend and is open to lending. (Please see graph below.) Negatives Real Estate Holding This is where most people are most concerned about the health of the bank industry. TrustCo cited in its most recent SEC filling dated June 30, 2010 the widespread disruptions in the mortgage market as a result of the financial crisis have not had a significant impact on TrustCo.