US Bankers To US Depositors: "Don't Panic, Nothing To See Here"

Tyler Durden's picture




 

While we explained exactly why there is a possibility of a Europe-style wealth tax in the US, it appears the American Banking Association has decided to put out fires early...

While the crisis in Cyprus is a real concern for depositors in Cypriot’s banks, it has no implication for depositors in U.S. institutions. Depositors in U.S. banks are insured up to $250,000 and no insured depositor has ever lost money in a bank failure. The U.S. banking industry has rapidly returned to health with strong earnings, lower losses and significant increases in capital.

 

The FDIC insurance fund has over $25 billion in reserves and the banking industry – which bears all the financial costs of supporting the FDIC – pays over $12.3 billion each year to assure adequate funding.

 

Simply put, U.S. insured depositors are safe and their deposits are protected by a strong FDIC fund, a financially secure banking system and the full faith and credit of the U.S.

So, it seems, the basis for not worrying about US deposits is the rule of law and the deposit insurance? Remind us again what Cypriots thought they had?

Brings to mind...

 

Via: ABA

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Tue, 03/19/2013 - 09:46 | 3346592 SafelyGraze
SafelyGraze's picture

no need to panic when your chief export is fiat

if yours is gold, on the other hand ..

Gold is Mali's main revenue earner as the country produces around 50 tons of gold each year. Gold currently accounts for around 20 percent of gross domestic product and about 70 percent of exports in desert nation.

http://www.bullionstreet.com/news/mali-gold-production-hit-hard-by-toura...

Tue, 03/19/2013 - 09:48 | 3346611 Short Memories
Short Memories's picture

"... and no insured depositor has ever lost money in a bank failure."

- Tell that to MFGlobal customers

Tue, 03/19/2013 - 09:51 | 3346637 IamtheREALmario
IamtheREALmario's picture

That was clearly theft by elitist parasites ... who are protected by a law that is superior to the property rights of the cattle they feast upon.

Tue, 03/19/2013 - 09:58 | 3346682 The Juggernaut
The Juggernaut's picture

hahaha ITS ALL PERCEPTION!  With that said, put your money under the mattress for the next couple of years!!

Tue, 03/19/2013 - 10:03 | 3346713 TerminalDebt
TerminalDebt's picture

"...a financially secure banking system and the full faith and credit of the U.S."

 

 

Oh Shit, I better get my money out fast

Tue, 03/19/2013 - 10:05 | 3346728 Nothing To See Here
Nothing To See Here's picture

Hey who cought me on tape?

Tue, 03/19/2013 - 10:55 | 3347009 Leopold B. Scotch
Leopold B. Scotch's picture

Cattle?  You're being too kind when referring to the muppets.

Tue, 03/19/2013 - 13:20 | 3348061 EscapingProgress
EscapingProgress's picture

"Depositors in U.S. banks are insured up to $250,000 and no insured depositor has ever lost money in a bank failure."

I have myself a good chuckle whenever I read this. Gov't deposit insurance will work really well up until everybody needs it.

"...no insured depositor has ever lost money in a bank failure."

On a long enough timeline the viability of every gov't program drops to zero. The question is, of course, how close are we to the end of our current paradigm?

Tue, 03/19/2013 - 14:11 | 3348450 TerminalDebt
TerminalDebt's picture

Those sheep shaggers in NZ think this is great

 

http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-st...

 

Tue, 03/19/2013 - 10:09 | 3346747 SeverinSlade
SeverinSlade's picture

So the ABA wants us to believe that the FDIC could absorb trillions in losses in the event of a systemic banking collapse? Check.

Tue, 03/19/2013 - 10:14 | 3346790 johnQpublic
johnQpublic's picture

The FDIC insurance fund has over $25 billion in reserves and the banking industry – which bears all the financial costs of supporting the FDIC – pays over $12.3 billion each year to assure adequate funding

 

 

 

25 billion in reserves

collects 12.3 billion per year

so wheres all the fucking money?

theres just two years worth of collections there

to cover what, like 14 trillion in US deposits?

Tue, 03/19/2013 - 10:55 | 3347011 kill switch
kill switch's picture

Your not suggesting that more than one bank would fail at a time??  How preposterous.

 

I smell a /sarc/

 

The Kill Switch

Oh P.S. Get you fucking money out.

 

http://www.youtube.com/watch?v=bv-TfBXEOAc

 

Tue, 03/19/2013 - 12:26 | 3347632 DosZap
DosZap's picture

While the crisis in Cyprus is a real concern for depositors in Cypriot’s banks, it has no implication for depositors in U.S. institutions. Depositors in U.S. banks are insured up to $250,000 and no insured depositor has ever lost money in a bank failure...

Yep, but HOW long did it take to get their deposits back?.

Fine Print: In can take up to a year.(can you afford your deposits to be locked out of your control for that long?.

Tue, 03/19/2013 - 10:56 | 3347021 strannick
strannick's picture

Its like Greenspan said ''The Federal Reserve can absolutely insure citizens liability dollar amounts, we're just not sure what those dollars will be worth''

Tue, 03/19/2013 - 10:14 | 3346792 s2man
s2man's picture

Sure, they could just print it.

Tue, 03/19/2013 - 11:22 | 3347189 smlbizman
smlbizman's picture

did they stop friday bank closings? or did they stop reporting these closings to us?

 

and i know after watching this guy from rbc capital robert wetenhall on cnbs...i have to go out and buy a home, before they double in price and are all gone....gotta git in early...dont want to be one of the suckers that wait.....

Tue, 03/19/2013 - 10:09 | 3346748 kralizec
kralizec's picture

Got that right!  If they have to say this. . .

Tue, 03/19/2013 - 09:59 | 3346690 MillionDollarBonus_
MillionDollarBonus_'s picture

There's a lot we can do in America now to avoid pain later. For a start we can levy every account at 3% a year and put the funds in a Federal Emergency Fund. This fund will be used to rescue banks if they are showing signs of weakness, or to inject liquidity into the economy when needed.

Tue, 03/19/2013 - 10:04 | 3346720 TerminalDebt
TerminalDebt's picture

Were you born like this or did you come into contact with a catholic priest?

Tue, 03/19/2013 - 10:07 | 3346741 Pladizow
Pladizow's picture

Careful, Tylers will delete any comment against the Catholic Church!

You can only insult Jews, Blacks and Hispanics!

Tue, 03/19/2013 - 11:06 | 3347087 onewayticket2
onewayticket2's picture

i'm new here....what about the Irish? 

too soon?

Tue, 03/19/2013 - 11:18 | 3347167 TBT or not TBT
TBT or not TBT's picture

American Indians are fair game, IMAO

Tue, 03/19/2013 - 13:56 | 3348350 TerminalDebt
TerminalDebt's picture

The ones that came from India and live in America - Tech Support Indians?

Or the ones that lived here for centuries before the pale face - Casino Indians?

 

Tue, 03/19/2013 - 13:54 | 3348339 daveO
daveO's picture

Yet, still no attacks on Dimon or Bernanke! 

Tue, 03/19/2013 - 10:06 | 3346727 The Juggernaut
The Juggernaut's picture

Let's just go ahead and simply levy 100% of only MillionDollarBonus_'s account

Tue, 03/19/2013 - 10:31 | 3346867 YHC-FTSE
YHC-FTSE's picture

Good idea but that 9 cents isn't going to help.

Tue, 03/19/2013 - 10:06 | 3346730 Pladizow
Pladizow's picture

Fuck that noise, it all should go to banker bonus'!

Tue, 03/19/2013 - 10:07 | 3346740 fonestar
fonestar's picture

Thanks, I'll just transfer to my own "Emergency Fund" located in C:\Documents and Settings\User\Aplication Data\Bitcoin\wallet.dat

Tue, 03/19/2013 - 10:26 | 3346837 Gazooks
Gazooks's picture

user interface: denial of service

 

consult your user agreement

 

consult emergency provisions of the Homeland Security Act; Pub.L. 107–29  

 

Cyber Security Enhancement Act of 2002, 2004, 2009

 

[edit] 

 

Tue, 03/19/2013 - 10:37 | 3346895 Pseudo Anonym
Pseudo Anonym's picture

using windows, are you?  microsoft's levy on your wallet.dat

Tue, 03/19/2013 - 11:14 | 3347122 fonestar
fonestar's picture

ah, swing both ways... Windoze/Gentoo dual boot

Tue, 03/19/2013 - 10:21 | 3346820 azzhatter
azzhatter's picture

Maybe FDIC could just invest in Facefuck shares

Tue, 03/19/2013 - 10:24 | 3346833 DosZap
DosZap's picture

MDB,

Sure makes perfect sense.When we are already paying out 50% of our income in taxes of one form or another(with more to come),that we should PAY the banks to dole out our hard earned,saved funds.

Personally most folks now just keep it in the banks for saftey from theft.Now, seems we have to be concerned about another type of burglar.The ones holding our cash to keep it from being stolen.

At less than 1% return w/ a 11%+true inflation rate, we are already 10%+ in the loss column.AND WE should get taxed yet again on money already taxed?.

Don't think so.

Tue, 03/19/2013 - 10:55 | 3347012 Snoopy the Economist
Snoopy the Economist's picture

MDB comments "For a start we can levy every account at 3% a year and put the funds in a Federal Emergency Fund. This fund will be used to rescue banks if they are showing signs of weakness, or to inject liquidity into the economy when needed."

I don't see how anyone can be this stupid - you clearly read the same stuff we do. You must then be working for the banksta's.

Tue, 03/19/2013 - 11:06 | 3347082 rwe2late
rwe2late's picture

MDB's

sarcasm is typically so humorous that

I don't know whether a vote up or down shows appreciation.

Tue, 03/19/2013 - 12:28 | 3347643 IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

Not one of MDB's more clever comments.  I would vote down.

You can do much better MDB!  (Still can't believe there commenters here taking him seriously).

Tue, 03/19/2013 - 10:58 | 3347040 Teamtc321
Teamtc321's picture

Sure, why not MDB. Let's give the beast more waisted money to fund studies on how monkey's throw their shit, millions last year on that specific gubermint study, I shit you not. How about a few more lavish golf trips with Tiger Woods. Let's increase drone production so we can blow up inocent people around the globe we don't even know. They need more cash to purchase HOLLOW POINT bullets to stock pile just in case, of what? Build the list of waisted of waisted money project's, it's endless at this point.

Hell, we should all just get up an hour earlier everyday, work harder and smarter. Cut cost, be more productive because we didn't build that, all in the name to give to the collective leaches. 

We should all chant, I just love my BANKER also, while we are at it!! 

 

 

Tue, 03/19/2013 - 11:22 | 3347192 TBT or not TBT
TBT or not TBT's picture

Pretty soon, with suggestions like this, they'll be taxing energy use, to "save the planet". The saving the banks arguments we hear now are camel noses under the tent, my friends.

Tue, 03/19/2013 - 12:17 | 3347564 Blano
Blano's picture

You keep disappearing on us, dammit.  I need a daily laugh.

Tue, 03/19/2013 - 13:37 | 3348241 Eigleaaz
Eigleaaz's picture

"For a start we can levy every account at 3% a year and put the funds in a Federal Emergency Fund. This fund will be used to rescue banks if they are showing signs of weakness, or to inject liquidity into the economy when needed."

I almost missed this one... the silent "inflation tax". Helicopter Ben showers the banks with money causing a stealth levy to be applied. You do have a way with words... lol

Tue, 03/19/2013 - 13:58 | 3348371 European American
European American's picture

"There's a lot we can do in America now to avoid pain later"

Why anyone would trust someone else, that they don't personally know, with one's hard earned dollars, in a world where corruption is an epidemic, is hard to comprehend.

Deposit one's fiat dollars in physical, precious metals. 

Tue, 03/19/2013 - 10:07 | 3346738 Stuck on Zero
Stuck on Zero's picture

Let's see ... banks pay 0.5% interest and inflation is about 6-10%.  That is expropriation of your assets via inflation.  Of course you have to pay tax on that 0.5%.

 

 

Tue, 03/19/2013 - 10:10 | 3346759 ejmoosa
ejmoosa's picture

To support the myth that you are making money on your savings, they must treat the interest as earnings.

Tue, 03/19/2013 - 12:49 | 3347829 Vince Clortho
Vince Clortho's picture

That's the way it works in NeverNeverLand

Tue, 03/19/2013 - 10:04 | 3346646 Pladizow
Pladizow's picture

FDIC:

 

And further, as we have at least 1 cent in reserve for every dollar of deposits we insure, there's nothing to worry about!

And if we happen to fail we can go to the Treasury.

And if the Treasury needs money they can go to the FED.

And circle jerk complete!

Tue, 03/19/2013 - 17:23 | 3349575 Spigot
Spigot's picture

...and the FDIC can take up to two years to resolve your account problem. If you believe that waiting two years to access your "insured" money is an acceptable risk, then party on Garth!

Tue, 03/19/2013 - 09:59 | 3346695 Silver Garbage Man
Silver Garbage Man's picture

Insured with counterfeit money. I panicked 3 years ago. My best panic ever.

Tue, 03/19/2013 - 10:16 | 3346801 s2man
s2man's picture

Me, too.  He who panics first, panics best.

I turn that fiat into physical assets as fast as possible.

Tue, 03/19/2013 - 11:26 | 3347231 little buddy bu...
little buddy buys the dips's picture

+1

Tue, 03/19/2013 - 10:57 | 3347032 Muddy1
Muddy1's picture

This is a proposed tax on the deposits in the Cypriot anks.  It is NOT an issue of a bank failure which is protected by FDIC.  (well, sort of protected).

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