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The Secret FDIC Proposal That Puts Your Savings At Risk

Phoenix Capital Research's picture




 

 

What happened in Cyprus isn’t a “one off” event.

 

The financial media and elite have been trying to convince the world that Cyprus was a unique situation… a “one time” deal… and that our money is safe in the banks.

 

This is untrue.

 

Spain, Canada, and New Zealand have already proposed similar measures through which individuals’ SAVINGS accounts would be used to prop up the banks during times of Crisis.

 

It’s called a “bail-in,” but really it’s “THEFT” plain and simple. The banks made the terrible mistakes that rendered them insolvent. They (the banks) should simply fail. But instead of failing, the regulators want to keep the banks in business… using YOUR money.

 

Why is this?

 

Two reasons:

 

  1. The regulators don’t have the money to actually insure deposits that they claim.
  2. Politicians realize that people are fed up with the public funding bank bailouts… so they’re targeting individual savers in the banks that are in trouble.

 

It’s a simple question of math regarding #1. Banking deposits are in the trillions of Dollars and most deposit insurance entities only have a few billion Dollars in funds. Obviously, if a large bank were to fail under these circumstances there wouldn’t be the funds to cover deposits…

 

Regarding #2, politicians have begun to realize that the public simply won’t stomach another Federal bailout of the banks. So instead of getting everyone and their children to chip in by using the public’s funds… they’re going after the deposits of a select few people who have their funds IN the troubled bank.

 

Their thinking is that if you can’t steal a little from everyone, you might as well try to steal a lot from a few people.

 

Could this happen in the US?

 

You better believe it. In fact, the FDIC has already put forth a proposal to do EXACTLY this in the event of a Crisis.

 

Just four months ago, the FDIC drafted a formal strategy in which it suggested that during the next Crisis, it can…

 

  1. Decide WHAT banks are systemically important.
  2. Take control of any “systemically important” bank that it deems at risk of default.
  3. Once in control of the bank, YOUR savings deposits can be “written down” in value (meaning you LOSE money you thought was yours) as part of the bank bailout.

 

Less than 99% of Americans realize this is the case, but the legislation allowing this is already IN PLACE and the FDIC has already written out the rules for what will happen.

 

We’ve put together a special investment report outlining this which EVERY person with a savings deposit needs to read now BEFORE the next Crisis hits the US. Doing this can mean the difference between keeping your nest egg secure… and losing EVERYTHING.

To read our investigative report…

 

Click Here Now!

 

Best Regards,

 

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

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Tue, 04/09/2013 - 10:20 | 3426275 Big Vlad P
Big Vlad P's picture

These mechanisms are just a different flavour of currency devaluation, could it be a possiblity in the U.S. of course however the FED is trying to stimulate via incresing the money supply. This post isn't really relavant at this point in the economic cycle...

Tue, 04/09/2013 - 09:04 | 3425877 Savvy
Savvy's picture

How fortunate all the savings fleeing bail-ins have bit coin to go to.

Tue, 04/09/2013 - 08:49 | 3425778 Colonial Intent
Colonial Intent's picture

OT but fucking funny, vatican porn traffic

http://boingboing.net/2013/04/07/what-porn-do-they-watch-in-the.html

The pope's fave transexual is tiffany starr, who knew?

Tue, 04/09/2013 - 08:13 | 3425631 rsnoble
rsnoble's picture

"Politicians realize that people are fed up with the public funding bank bailouts… so they’re targeting individual savers in the banks that are in trouble."

Let them try that in just one US bank and watch what happens.

Tue, 04/09/2013 - 10:26 | 3426301 Umh
Umh's picture

I wish you were right, but I think the US public will just roll over and give up.

Tue, 04/09/2013 - 03:48 | 3425295 GoldIsMoney
GoldIsMoney's picture

"Spain, Canada, and New Zealand have already proposed similar "

 

Could you point out for us, where this can be found?

Thanks


Tue, 04/09/2013 - 03:09 | 3425276 LuchadorChumba
LuchadorChumba's picture

Grahamquacker,

if it was a secret, y you blew my cover I'd leave you in a puddle of blood in the middle of the ring.

Sorry excuse for a luchador you are.

Viva El Luchador

Ask Chumba

 

Tue, 04/09/2013 - 02:00 | 3425231 R_J
R_J's picture

FDIC & BoE - G-SIFI´s

"Resolving Globally Active, Systemically Important, Financial Institutions"
- A joint paper by the Federal Deposit Insurance Corporation and the Bank of England
-released, Dec 10th, 2012
http://www.bankofengland.co.uk/publications/Documents/news/2012/nr156.pdf

-Section 34;
 "deposit guarantee schemes may be required to contribute to the recapitalization of the firm"

-G20 members are ensuring that they can legally override the rights of creditors, including uninsured depositors.

"Key Attributes of Effective Resolution Regimes for Financial Institutions"
http://www.financialstabilityboard.org/publications/r_111104cc.pdf

"Recovery and Resolution Planning: Making the Key Attributes Requirements Operational"
http://www.financialstabilityboard.org/publications/r_121102.pdf

+ADDITIONAL VOMIT:

"The International Organization of Securities Commissions" (IOSCO)

-CPSS-IOSCO consultative paper on FMI recovery and resolution, published in July 2012:
"IOSCO - Recovery and resolution of financial market infrastructures"
http://www.bis.org/publ/cpss103.pdf

and

-BIS - Committee on Payment and Settlement Systems (CPSS)

"BIS - Publication of a Consultative Report on The Recovery and Resolution of Financial Market Infrastructures"
http://www.iosco.org/library/pubdocs/pdf/IOSCOPD388.pdf

 

-R_J

Mon, 04/08/2013 - 21:14 | 3424573 bilejones
bilejones's picture

"Less than 99% of Americans realize this is the case, but the legislation allowing this is already IN PLACE and the FDIC has already written out the rules for what will happen."

 

So, do 98% of Americans know?

 

Thank God that 99% don't know.

Mon, 04/08/2013 - 20:30 | 3424418 are we there yet
are we there yet's picture

Go long spiderman bath towels. Wallstreet, the banks, and TPTB plan to giving you a personal bath whitout a happy ending.

Mon, 04/08/2013 - 20:23 | 3424390 exartizo
exartizo's picture

ummmm. yawn. (literally).

...does anyone still keep money in savings accounts Graham?

go back to your Chief Market Strategist corner and don't come out until you've got something less obvious my friend.

Tue, 04/09/2013 - 00:09 | 3425101 bunnyswanson
bunnyswanson's picture

Fuck you dull person.  Fuck yo all for sizing up and trashing articles on a site that, 10 years ago, was telling us that we were being set up for failure.

You wanna-be rich bastards have been counting your money all day long while the country has been invaded.  You went right fucking along. 

There are some of us who need all the information we can find.  It's not easy finding a job and some are faced with zero alternatives.  Thanks to this site, some have been able to prepare.

So loser asshole who has the time to type nothing comments on a message board at a time like this...fuck off.

Mon, 04/08/2013 - 21:10 | 3424555 New_Meat
New_Meat's picture

reddie on ya, child.  Because, since it is so obvious to you, it might not be so obvious to the great unwashed masses out there.

Next, you'll be lecturing all of us about the "Efficient Market Hypothesis" and how "All Information Is Priced Into the MARKET at all times."

Actually, please do those lectures, we'll actually gain a bit of entertainment of a day.

Don't cha' know.

- Ned

Mon, 04/08/2013 - 17:33 | 3423834 manich
manich's picture

I just make sure my "money in the bank" doesn't exceed my 3.5% home mortgage. If they close the banks down and still want my mortgage payment, well..... I will tell them where to "go"........... to find it. Can you imagine how long it would take for the banksters to foreclose on 100s of millions of homes?

Mon, 04/08/2013 - 22:26 | 3424768 bilejones
bilejones's picture

You don't understand how it works.

 

All of your "money": i.e.  the  deposits, CD's and checking accounts, go into the "Bad Bank" your liabilities; the money you owe them, go to the "good bank".

 

The bad bank dies, along with your assets.

The good bank survives along with your liabilities.

Mon, 04/08/2013 - 21:02 | 3424535 egoist
egoist's picture
Mon, 04/08/2013 - 15:02 | 3423073 kchrisc
kchrisc's picture

Keep in mind that the banks have/will steal YOUR money twice: once when you deposit it (via Ponzi fraud) and a second time, with the assistance of their government stooges, when their Ponzi schemes collapse.

What one has to also keep in mind is that for every $1 in deposits one has in the banking "system," $9 (now usually more) is created in debt. So if you have $1,000 in the banking "system" and $9,000 in debt, you are borrowing and paying on your OWN money. And when the SHTF they will "confiscate" your deposit accounts but still demand that you pay them on the debt. "Sir, may I have another!"

Just what guillotines were made for.                    hujel

Mon, 04/08/2013 - 15:25 | 3422960 Mototard at Large
Mototard at Large's picture

Sorry Graham, not a secret and it is old news. The FDIC and the Bank of England have written a joint paper explaining how savings deposits which are said to be guaranteed for the depositor will instead be used to bail out failing banks.  I wrote on this back on 22 March 2013.

 

For an explanation of the Bank of England/FDIC paper see:  http://tiny.cc/z4jcuw  


Spain has the same idea, but with a different approach http://tinyurl.com/cedrumy  24 March

Canada doing the same thing and just put it in the budget: http://tinyurl.com/cvcf9v9   27 March

 

Mon, 04/08/2013 - 14:06 | 3422719 wtlf555
wtlf555's picture

Every morning when I wake I thank God I don't have any savings :)

Mon, 04/08/2013 - 22:42 | 3424840 bilejones
bilejones's picture

Well, if you have a god, life's not likely to get beter.

Mon, 04/08/2013 - 13:59 | 3422660 kieran1968
kieran1968's picture

So the premise is that your savings are covered up to a certain amount if the bank fails.

 

However, if savers deposits are used to fund the recapitalization of the bank, which means that it doesn't fail, then technically, the insurance isn't applicable; the bank hasn't gone bust.

 

What a wonderful world we have to look forward to!

Mon, 04/08/2013 - 13:56 | 3422637 ebworthen
ebworthen's picture

Bernanke very clearly condoned the ECB and IMF deposit confiscation actions in Cyprus, and did not deny that it could be done in the U.S., only that FDIC was bolstered in the past, and that deposit confiscation was "unlikely".

Yeah, "unlikely" - just like the collapse of 2008, the rape of GM bondholders, MF Global "vaporization" of customer assets with the help of the J.P. Morgue, MERS, LIBOR rigging, and the FED propping of investment banks at the expense of citizens.

Bernanke = LIAR

Mon, 04/08/2013 - 13:39 | 3422556 Dr. No
Dr. No's picture

BS.  The biggest banks are protected by the FED.  In the event of a bank-run at JPM/WFC/C, the FED will ship currency to these shareholder bank braches.

Smaller, non-FED back-stopped banks are typically bankrupted on a weekend.  Over the weekend, the FDIC coordinates a bailout by a FED backed bank for pennies on the dollar.  If there are any savings in jepordy, the FDIC covers the difference (which is actually not that much).  The bond holders take a bath.

On monday, this newly aquired bank is then opened and people are allowed access to their money.   People then get their FED-backed money and promptly spend it or leave it on deposit.  Money spent ends up in a FED-backed bank in a matter of days.

It would be quite elegant if it were not stealing by the FED.

Mon, 04/08/2013 - 14:00 | 3422677 the grateful un...
the grateful unemployed's picture

makes you wonder with all this competitive currency devaluations why some soveign doesn't simply haircut all notional deposits, overnight reduce all bank accounts by x percent. the case for coordinated devaluation has never been greater (in their minds anyway) but there simply isn't the global coordination to achieve such a thing. the real problem is that the money the Fed prints isn't getting into the real economy, so reducing the currency float doesn't do much to help that, although reducing notional versus hard currency might appeal to them. a way of printing money inversely, by mopping up liquidity.

Mon, 04/08/2013 - 13:37 | 3422546 BullyBearish
BullyBearish's picture

It's ironic...most people, afraid of having their money stolen at home by local thieves put it in a bank where it is free to be stolen by governmental thieves

Tue, 04/09/2013 - 09:49 | 3426116 The Navigator
The Navigator's picture

put it in a bank where it is free to be stolen by governmental thieves

I would adjust the wording from "free" to "sure to be stolen"

Mon, 04/08/2013 - 20:03 | 3424331 Croesus
Croesus's picture

@ Bully Bearish:

Imitation is the sincerest form of flattery.....+1 for you!

http://www.zerohedge.com/news/2013-04-03/other-parabolic-chart-has-centr...

 

Mon, 04/08/2013 - 15:43 | 3423298 Graph
Graph's picture

That leaves unmarked grave as safe place. Like in "The Good, the Bad and Ugly"

Tue, 04/09/2013 - 07:36 | 3425535 S5936
S5936's picture

Arch Stanton eh ?

Mon, 04/08/2013 - 14:07 | 3422509 kindape
kindape's picture

Graham, my savings became at risk when I first started reading your posts....

Mon, 04/08/2013 - 13:09 | 3422437 CustomersMan
CustomersMan's picture

 

"The public is fed up with bailouts" , Yes that is true, BUT we want our $TRILLIONS BACK" from the bailouts that have already occurred, where hidden, and we were never suppose to find out about. Ron Paul and others forced the issue.

 

They (The FED and Politicians) just want to start over, a new phase and NOW fuck the public savers, pensioners, etc, "We must look ahead not back" is their mantra. Just like lets forget about 9/11, illegal wars. Not so fast with that shit.

The stolen $trillions" that went to European Banks, U.S. Banks, Corporations, and stolen, will NOT go away down the memory hole, and a massive adjustment needs to occur, where they and the principals in these entities, including those who have resigned and retired get fucked royally in their ass and all assets stripped away forever more.

Mon, 04/08/2013 - 13:01 | 3422413 Bloodstock
Bloodstock's picture

So only the BIG banks will do this? Local small banks won't? Credit unions won't? Any guarantees? Lol, what is a guarantee these days anyway? Seriously folks I would like some feedback as I, and many others try to sort this shit out. Thanks.

Mon, 04/08/2013 - 15:10 | 3423124 Diogenes
Diogenes's picture

How long have you been dealing with banks? I wouldn't put anything past those pricks.

Mon, 04/08/2013 - 15:18 | 3423158 goldflame
goldflame's picture

But my big bank gives out free suckers, DUM DUMS actually.  I think they may be trying to tell us something.  

Mon, 04/08/2013 - 20:31 | 3424433 screw face
screw face's picture

Hey, my big bank does that to, W.F.

To bad they have so many muddy deeds for collateral on all those home loans.

How do you say class action, in French?

One hump or two?

Jah Love

Mon, 04/08/2013 - 13:43 | 3422582 kaiserhoff
kaiserhoff's picture

Credit unions are not leveraged the way banks are, and tend to have broad based, local control.

That may or may not matter with this cluster fuck, but it's my choice for small, quick, liquid funds.

Postal money orders can be purchased for up to $500 each, unless it has changed recently.

I never thought we would have to deal with this shit.  The end is near.

 

Tue, 04/09/2013 - 00:56 | 3425185 Ludwig Van
Ludwig Van's picture

Postal money orders up to a thousand now.

.

Mon, 04/08/2013 - 12:56 | 3422400 Sudden Debt
Sudden Debt's picture

Obviously, if a large bank were to fail....

if = when

when = sure thing

A banks know about 12 to 14 months in advance that they're in trouble. The flares have been shot and the new rules are written to handle the issue.

Mon, 04/08/2013 - 12:20 | 3422293 johnQpublic
johnQpublic's picture

20 bucks a month interest on 100,000 dollars

or get zero interest and keep it at home

house burns down i'm screwed

or leave it in the bank

problem is that the bank already appears to be on fire

edit:

on a long enuf timeline every bank account goes to zero (?)

Mon, 04/08/2013 - 16:02 | 3423386 tango
tango's picture

Talking to a bank guy I know (small, local bank) I remarked that in an emergency at least I could get to my bank box.  Sorry, Charley, under the "Patriot Acgt" in an "emergency" bank boxes are not accessible.  I did what he did - bought a large safe for my house, built a room around it and removed all the gold, silver and cash from the bank.  Taking no chances.   I have one account that I reduced to under $100,000 that gets 4/10 of 1% interest - DOUBLE the regular amount.  Why save?

Mon, 04/08/2013 - 13:50 | 3422619 ncdirtdigger
ncdirtdigger's picture

Typical house fire 1200 degrees

Melting point of gold 1947.52°.


Mon, 04/08/2013 - 12:08 | 3422251 the grateful un...
the grateful unemployed's picture

FDIC has no authority over Credit Unions

Mon, 04/08/2013 - 14:37 | 3422909 DosZap
DosZap's picture

FDIC has no authority over Credit Unions

 

http://www.ncua.gov/DataApps/Pages/SI-NCUA.aspx

Your right, but still wrong..................same dead ass broke SOB's making the guarantees.

Your NO safer there, than a Bank.

Tue, 04/09/2013 - 01:22 | 3425199 TalkToLind
TalkToLind's picture

That's right, DosZap. And here's a little secret for those who don't know:  Some Credit Unions behave just like banks.  Hawking ARM loans, low down payment mortgages, ect...

Mon, 04/08/2013 - 17:02 | 3423688 Boris Alatovkrap
Boris Alatovkrap's picture

Welcome TBTF (ak "Collective Salvation"), like black hole, is suck everything in. Safer is family, community, gun, gold, food.

Mon, 04/08/2013 - 13:29 | 3422508 A Nanny Moose
A Nanny Moose's picture

LOL. You think CUs would be safe. He what makes the gold, makes the rules. He what makes the rules, gets all the gold.

http://fdic.gov/about/srac/2012/gsifi.pdf

Mon, 04/08/2013 - 13:54 | 3422636 the grateful un...
the grateful unemployed's picture

domestic CU's, not foreign FDIC backed banks. since CU's don't make SB loans you have an additional layer of protection in the event of a run hot money will flow out of money center banks and into CU's. (hot money is another problem but as far as the bank assets against a run you should be okay) the problem wont' be physical money, bernanke has that part figured out. its what happens after they print to cover losses (i am sure the FED is parking money in MM accounts, M2 for this very reason, recall in the last crash MM account holders took losses when NAV dropped below $1)

Mon, 04/08/2013 - 13:39 | 3422551 ronaldawg
ronaldawg's picture

Sort of BS - My University Credit Union writes its checks on a Bank of America account - when I found that out I took all my money out and paid off car loan.

No moar TBTF banks for me....

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