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Posts Tagged ‘FDIC’

Is the Money in Your Checking Account Yours or the Bank’s?

Posted by M. C. on September 30, 2023

“With such an agreement, “fractional reserve free banking” proponents say, depositors would know that they are effectively creditors to the bank and that the bank is therefore a debtor to them. This means that the deposits are technically and legally owned by the bank and that what the depositor has is technically and legally a callable loan to the bank. Clear agreements would mean that depositors understand that there is a chance that they won’t be able to get their money (actually, the bank’s money, in this view) immediately in the event of a bank failure. Of course, central banking and government-backed deposit insurance diminish customers’ expectation of bank responsibility…”

https://mises.org/wire/money-your-checking-account-yours-or-banks

Jonathan Newman

When Silicon Valley Bank and other banks failed earlier this year, the debate over the sustainability of fractional reserve banking resurfaced. Under fractional reserve banking, banks keep only a fraction of customers’ deposits in reserve. The difference is bank credit, such as government debt, mortgages, business loans, and many other kinds of loans. This practice leaves the bank open to a run, in which panicky depositors attempt to withdraw their funds from the bank en masse but the bank doesn’t have the cash on hand. The following FRED graph gives an idea of the extent of the mismatch between deposits and reserves.

https://fred.stlouisfed.org/graph/graph-landing.php?g=19j9C&width=670&height=475

But we shouldn’t worry about bank runs because the government is here to help. In the US, the Federal Deposit Insurance Corporation (FDIC) insures checking accounts up to $250,000, and the banking system is regulated by a host of agencies, including the Federal Reserve, which also acts as a lender of last resort. These measures are intended to prevent and mitigate bank runs for the benefit of both the banks and their depositors. Though it should be obvious that they only conceal the fundamental problem and disperse the costs.

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Some Bank Depositors Get the Smoke, Others the Mirrors | Mises Institute

Posted by M. C. on July 17, 2023

The FDIC can decide what deposits live and which ones die. For now, the deposit insurer has told SVB’s Cayman depositors they can file unsecured claims in the bankruptcy by July 10. 

https://mises.org/power-market/some-bank-depositors-get-smoke-others-mirrors

Doug French

Over dinner the other night a business man mentioned that he had large amounts on deposit in the nation’s banks and said words to the effect that there is no way the government will let those deposits which are various company operating accounts go “pfft.”

On that subject, while Silicon Valley Bank’s US deposits have been covered, SVB’s deposits in the Cayman Islands have gone “pfft ” or to be more clear those depositors have become unsecured creditors in the SVB bankruptcy. The bank’s foreign deposits totaled $13.9 billion at the end of last year. “The branch in the offshore tax haven was set up to primarily support the bank’s activities in Asia, according to SVB. Its depositors, which include multiple Chinese investment firms, haven’t been able to access their funds—and have been in limbo since SVB’s collapse,” reports the Wall Street Journal’s Frances Yoon.

Depositors are more than surprised, after all the Federal Reserve Board made a statement after the SVB failure, “After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that ”fully protects all depositors.” (emphasis added)

A spokesperson for Phoenix Property Investors, a Hong Kong-based private-equity firm that had funds in SVB’s Cayman Islands branch told the WSJ “We feel misled and are now doing what we can to recover our deposits.”

Now it’s worse than being misled. Those same deposit customers who have loans outstanding are being told to pay up by loan purchaser First Citizen Bank. Ms. Yoon and Serena Ng write in the WSJ, “Some of those same venture-capital and private-equity funds had previously drawn on credit lines that were linked to their SVB deposit accounts. Their outstanding loans were among the assets that were sold to First Citizens, customers of the bank told the Journal.” 

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FDIC Cash Balance Covers 1.27% of ALL Insured Deposits

Posted by M. C. on May 3, 2023

Now we know that all western DATA is forged.   We also know that Yellen, sobbing over a looming debt default, has the mind of a slug of jello and she will do whatever she is told without – a thought.   Literally.

Watch The Mergers.   This will determine their next Play Act on the Stage of the “Global Bust” as written by

~ The Protocols.

FDIC Cash Balance Covers 1.27% of ALL Insured Deposits

Before helping to Bailout SVB Bank and Republic Bank – the FDIC had $128 billion cash on hand representing 1.27% of all insured deposits.   Still think your money is insured?   Not if the FDIC has no more funds.   They are funded by banks – when banks are no more, their funding takes a dive.   The Rothschild Economist declared a few weeks ago that the largest banks needed to absorb ALL other banks to recreate a banking Cartel of just 3-5 mega banks.   This is the only means to CONTROL via social credit scores.

Today, The Economist is suggesting that mining companies begin the same absorption process.   Lauding the agenda as the creation of a super commodities group or “Cartel”, the industry includes green metals as well as coal and other minerals such as lithium. Monopolies are the end goal.

Within this western trend, newly crowned King Charles has altered his coronation to add a ‘pledge’ that all Brits are called to recite in unison proclaiming their obedience to the King.   Not to the Land. Not to the Constitution.   But to Charles the man who intends to expand his Kingship duties so as to fully indoctrinate the British Empire that was and isn’t.  Hail Britain’s Totalitarian Rule!

The problem with going forward with the World Economic Forum Agenda is too many countries have sabotaged the global outcome.   Without a global response, with waning allies, and with awakened populace across the globe, the Cartel will need more than simple monopolies doling out rations.

In the event the Mafia Cartel manages to obliterate the western economies who will they govern?   Exodus from major cities will cue chaos should the chaos puppets choose to invade suburban and rural communities.     Which is why the importance of gun confiscation becomes a pre-eminent need to solve before the wave moves outward.  Their timing is off…

In nearly all mergers, employees are the first casualty.   Employees who reap benefits, lucrative salaries and whose job is largely a stage effect go first.   But in every restructure the slashing is crisp and finale.   There is no begging.   There is no mercy.   Thus the mergers being ordered by the Cartel will have an unemployment fallout.   Given all statistics are now algorithms, we have little ability to scrape together facts from the dung pile.

Unemployment is already a side show of fraud – operating on the same ideology established by Communist China.   We used to laugh at how China manipulated its GDP, its employment, its death rate, its wealth, its stock market, all DATA.   It is relatively easy once the government is onboard.   Now we know that all western DATA is forged.   We also know that Yellen, sobbing over a looming debt default, has the mind of a slug of jello and she will do whatever she is told without – a thought.   Literally.

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CAUGHT ON VIDEO: FDIC Plans a Bail-In with YOUR Money

Posted by M. C. on March 7, 2023

I’m not the world’s mathiest person but it didn’t take any extravagant calculations to discover that is 0.0126 cents for every dollar that is allegedly “insured.” Only 1.26% of the money that is “insured” actually has existing liquid money available to pay you back.

Bail your cash out and buy a good safe.

https://www.theorganicprepper.com/fdic-bail-in/

Things are rough in the US economy, and the FDIC seems to be making plans to handle further collapse. How? By helping themselves to YOUR money that you have on deposit, safely (you thought) tucked away in your bank account.

If I’m right, a lot of people are going to be financially devastated in the not-so-distant future.

Think I’m a crazy conspiracy theorist? Well, as we’ve seen, that often means you’re just ahead of the game. There are several reasons that I believe it may come to this, not the least of which is that there’s a publicly accessible video of their meeting in which they discuss how to do it, when to do it, and how to keep the public from freaking out about it. The time to come up with a strategy to protect your money is now, and it couldn’t be more urgent.

Let’s take a closer look.

What’s the FDIC?

FDIC stands for Federal Deposit Insurance Corporation. From their website, we find what that means:

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. To accomplish this mission, the FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.

They go on to say:

Since its creation in 1933, the FDIC has been an essential part of the American financial system. In the 1920s and early 1930s, a rise in bank failures created a national crisis, wiping out many Americans’ savings. Since FDIC insurance began in 1934, no depositor has lost a single penny of insured funds due to bank failure.

Sounds great, right? It is when it works properly.

Depositors do not need to apply for FDIC insurance. Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank or financial institution. If you are interested in FDIC deposit insurance coverage, simply make sure you are placing your funds in a deposit product at the bank.

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for coverage over $250,000 if they have funds in different ownership categories and all FDIC requirements are met.

All deposits that an accountholder has in the same ownership category at the same bank are added together and insured up to the standard insurance amount.

If the bank fails, FDIC covers the balance of a depositor’s account up to the insurance limit.

So we know how it’s supposed to work, and how it’s worked up until now.

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The Bank-Run Phenomenon – The Future of Freedom Foundation

Posted by M. C. on December 3, 2022

Of course, U.S. officials say that an industry-wide banking crisis could never happen in the United States because the U.S. is such a powerful empire. Let’s hope they are right. And let’s just continue acting as though decades of a destructive banking policy, skyrocketing federal spending, spiraling federal debt (now in excess of $31 trillion), and monetary debauchery will come with no adverse consequences. 

https://www.fff.org/2022/11/28/the-bank-run-phenomenon/

One of the most fascinating phenomena in financial crises is that of bank runs. That’s when panicked depositors rush to their bank to withdraw their money because they’re convinced that the bank is going broke. Everyone tries to withdraw his money before that happens. If the bank does finally go under, the people who failed to withdraw their money are left with a bank that has no money to return to them.

That’s what the FDIC is all about. It insures everyone’s deposits up to a limit of $250,000. The limit used to be $100,000 but U.S. officials, for whatever reason, wanted to make depositors feel even more secure about keeping their money in the bank.

The idea is that people don’t have to worry about losing their money if their bank goes under because the federal government will use taxpayer money to reimburse them. Thus, knowing that their money is “insured” by the government, people have less incentive to rush to the bank to withdraw their money in the event of a potential bank failure.

Of course, one problem with the FDIC insurance is that it enables weaker banks to continue operating, which could make the problem much worse in the future. Without the FDIC, weak banks would go under sooner because people, sensing a problem, would rush to withdraw their money. 

Sure, without an FDIC, that would mean that depositors would lose their money. But why should picking the wrong bank be any different from picking the wrong stock or any other investment? We don’t have a Federal Stock Insurance Corporation. If people invest in a stock and the company goes bankrupt, then people lose their money. That encourages people to take care about where they invest their money.

That same degree of care doesn’t exist when it comes to banking. Very few people study the financial condition of the bank in which they deposit their money. That’s because of the FDIC. They know that if the bank goes under, they’re going to get reimbursed by the taxpayers.

But what happens if there is a nationwide banking collapse? The amount of money in the FDIC’s insurance fund is enough to cover losses in several individual banks. But it doesn’t even come close to being able to do that in the event of an industrywide banking collapse. 

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