JUPITER, FL, October 3, 2008: PRNewswire-USNewswire via COMTEX:  A new study released today by Weiss Research, Inc. demonstrates that many banks and thrifts in the United States may be overly reliant on "hot money" deposits often associated with bank runs.

New legislation to raise the limit on FDIC coverage could help stabilize a portion of these deposits, but many institutions will continue to be vulnerable to panicky withdrawals by depositors, such as those with accounts exceeding $250,000.

Martin D. Weiss, president of Weiss Research, comments: "We are pleased that Congress recognizes the importance of fortifying safety nets like the FDIC, as discussed in our white paper, "Proposed $700 Billion Bailout Is Too Little, Too Late to End the Debt Crisis; Too Much, Too Soon for the U.S. Bond Market" (http://www.weissgroupinc.com/bailout/Bailout-White-Paper-Sept-24-2008.pdf).  However, we recommend other, less risky, measures to help reduce the possibility of bank runs."

The new Weiss Research study, based on second quarter data recently released by the FDIC and OTS, shows that banks are dependent on hot money for nearly 22% of their deposits, while S&Ls and other thrifts are dependent on hot money for almost 50% of deposits.

Among other measures, Weiss believes that Congress should guide consumers to reputable sources of bank ratings and greatly expand FDIC staff to ensure prompt reimbursement of insured depositors.

The Weiss study is available at www.weissgroupinc.com/FDICReport/. In addition, consumers seeking advice on bank safety are invited to view Weiss' one-hour educational video, "The X List" available at www.MoneyandMarkets.com in the upper left corner of its home page.

Weiss Research, Inc. is an independent investment research firm in Jupiter, Florida. Founded in 1971, the firm is one of the nation's leading research and analysis firms for investors, providing information and tools to help them make sound financial decisions. Its flagship publication, Money and Markets, is a daily investment e-letter offering the latest news and financial insights for investors.

SOURCE: Weiss Research, Inc.