Automated method and article of manufacture for fully insuring large bank deposits wherein bank that processes a large deposit sends out and receives back an equal amount of large deposits via a network of banks
An automated method and article of manufacture are provided for processing large deposits that exceed an established deposit insurance limit so that the large deposits are fully insured. The large deposits are received by a plurality of banks from their depositors, and the plurality of banks include banks that are unaffiliated with each other. An order from a bank is received at a processor to process a large deposit. The processor partitions the large deposit into a plurality of deposit portions such that each deposit portion does not exceed the established deposit insurance limit. The processor automatically assigns at least some of the deposit portions to at least some banks other than the bank that received the large deposit for deposit therein. The processor automatically deposits in the bank that sent the order to the processor an amount of funds equal to the amount of the order.
1. An automated method of processing large deposits that exceed an established deposit insurance limit so that the large deposits are fully insured, the large deposits being received by a plurality of banks from their depositors, the plurality of banks including banks that are unaffiliated with each other, the method comprising for at least some of the large deposits:
(a) receiving at a processor an order from one of the unaffiliated banks to process a large deposit;
(b) partitioning, using the processor, the large deposit into a plurality of deposit portions, each deposit portion not exceeding the established deposit insurance limit;
(c) automatically assigning by the processor at least some of the deposit portions to at least some of the unaffiliated banks other than the unaffiliated bank that received the large deposit for deposit therein; and
(d) automatically depositing by the processor in the unaffiliated bank that sent the order to the processor an amount of funds equal to the amount of the order.
2. The method of claim 1 further comprising:
(e) obtaining via the processor at least some of the funds needed to make the deposit in step (d) from a lending bank.
3. The method of claim 2 further comprising:
(f) conducting via the processor a bidding process to select the lending bank that provides the at least some of the funds needed to make the deposit in step (d).
4. The method of claim 1 further comprising:
(e) checking by the processor whether a deposit portion of a specific depositor has been assigned to an unaffiliated bank that already holds a deposit portion of the specific depositor, and if so, reassigning by the processor the deposit portion to another unaffiliated bank that does not hold a deposit portion of the specific depositor.
5. The method of claim 1 wherein each deposit portion is used to acquire an ownership interest in a deposit instrument at the unaffiliated bank that the specific deposit portion was assigned to.
6. The method of claim 5 wherein the acquired ownership interest in the deposit instrument is the purchase of a deposit instrument.
7. The method of claim 6 wherein the deposit instrument is a certificate of deposit (CD).
8. The method of claim 1 wherein the amount of funds in step (d) is deposited as a plurality of deposit portions, each deposit portion being a portion of a large deposit of a depositor other than the depositor associated with the order, and each large deposit not exceeding the established deposit insurance limit.
9. The method of claim 1 wherein each of the assigned deposit portions are associated with a specific depositor's account in the unaffiliated bank that the deposit portion was assigned to.
10. The method of claim 1 wherein the established deposit insurance limit is in accordance with U.S. law, regulations and rules established by the United States Federal Deposit Insurance Corporation (FDIC).
11. The method of claim 1 wherein steps (b)-(d) are executed together by the processor on a periodic basis.
12. The method of claim 1 wherein step (c) further comprises automatically assigning by the processor at least some of the deposit portions to at least some of the unaffiliated banks for deposit into CDs at the respective banks.
13. A computer program product for processing large deposits that exceed an established deposit insurance limit so that the large deposits are fully insured, the large deposits being received by a plurality of banks from their depositors, the plurality of banks including banks that are unaffiliated with each other, for at least some of the large deposits, the computer program product comprising computer-readable media encoded with instructions for execution by a processor to perform a method comprising:
(a) receiving an order from one of the unaffiliated banks to process a large deposit;
(b) partitioning the large deposit into a plurality of deposit portions, each deposit portion not exceeding the established deposit insurance limit;
(c) automatically assigning at least some of the deposit portions to at least some of the unaffiliated banks other than the unaffiliated bank that received the large deposit for deposit therein; and
(d) automatically depositing in the unaffiliated bank that sent the order an amount of funds equal to the amount of the order.
14. The computer program product of claim 13 wherein the established deposit insurance limit is in accordance with U.S. law, regulations and rules established by the United States Federal Deposit Insurance Corporation (FDIC).
15. The computer program product of claim 13 wherein steps (b)-(d) are executed together on a periodic basis.
16. The computer program product of claim 13 wherein step (c) further comprises automatically assigning at least some of the deposit portions to at least some of the unaffiliated banks for deposit into CDs at the respective banks.
17. The computer program product of claim 13 wherein the computer-readable media is encoded with instructions for execution by the processor to perform a method further comprising:
(e) obtaining via the processor at least some of the funds needed to make the deposit in step (d) from a lending bank.
18. The computer program product of claim 13 wherein the amount of funds in step (d) is deposited as a plurality of deposit portions, each deposit portion being a portion of a large deposit of a depositor other than the depositor associated with the order, and each large deposit not exceeding the established deposit insurance limit.