WORDHOUSE WEALTH COACHING
Phyllis and I thought you would be interested in the letter that was issued by the President and CEO of Trust Company of America. This letter was written in response to the current problems with several lending institutions and possible concerns about the stability of TCA. Please read the letter as it should give your reassurance that TCA has not invested in mortgage pools or sub-prime mortgages. It also notes that TCA holds the highest category of "Well Capitalized" given by the FDIC to institutions such as banks and trust companies.
September 19, 2008
Dear Valued Client,
With all the recent turmoil in the financial markets and this week's continued announcements of failing financial institutions, we are pleased to state that Trust Company of America remains financially strong.
Since our establishment in 1972, our philosophy has always been, and remains, conservative. We continue to believe that our financial strength is the foundation of providing on-going service to our clients in all market conditions.
Financial Soundness
Trust Company of America has no short or long term indebtedness. Furthermore since we are not a lending institution, we have no exposure to defaulting loans that more traditional depository institutions are experiencing. Under both the Federal Deposit Insurance Corporation (FDIC) and the State of Colorado Division of Banking guidelines we are "Well Capitalized," the highest category available for depository institutions such as banks and trust companies. More detailed information regarding FDIC standards is available at www.fdic.gov within the Regulation and Examinations section.
Your assets at Trust Company are protected. Through Trust Company's charter with the Federal Deposit Insurance Corporation (FDIC), investors' cash deposits are insured up to $100,000 per account and up to $250,000 per retirement account. In addition, our clients' securities are held separately from corporate assets. For information on the full insurance coverage of client securities, see www.trustamerica.com/advisor-forms under Other Forms and Information section.
Portfolio Overview
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When underwriting standards were lowered in recent years, we made a conscious decision to not invest in mortgage pools containing sub-prime mortgages. We do not hold, nor have held, any exposure to equities in FNMA (Fannie Mae), FHLMC (Freddie Mac), Lehman Brothers Holdings, Inc., or American International Group, Inc. (AIG).
Trust Company of America's cash deposit investment portfolio is primarily comprised of short term AAA-rated U.S. Agency securities and short term AAA-rated U.S. Agency Collateralized Mortgage Obligations (CMOs), of which the majority is GNMA CMOs that are backed by the full faith and credit of the U.S. government. The remaining portfolio is in municipal bonds which are diversified across many different issues and have credit support from various guarantors for the timely payment of principal and interest.
In summary, we understand your concerns during this unprecedented time of economic uncertainty. We believe our conservative philosophy has positioned us well to service our clients in this financial environment. We would like to stress our commitment to financial strength and the soundness of Trust Company of America.
D. Terry Reitan
President and CEO
Trust Company of America
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The portfolio composition is subject to change over time. Trust Company does not recommend or endorse any securities or investment strategies. Trust Company acts as an asset custodian and does not offer investment advice.
Please call or email us if you have any questions.
Thank you,
Phyllis and Maria
Phone: 616-301-9049 · Fax: 888-797-8703
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