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US Bankers To US Depositors: "Don't Panic, Nothing To See Here"
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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You're talking about the hard economy, in a soft economy, everyone is not equal.
The FDIC isurance 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.
I'm trying to do the math on this but forgot the equation that proves the coverage will extend past 2 years...
...but now we know the formula for the secret sauce: just skim a little depositor $$ to fill the financial gaps...
Kind of like when the government handled the GM bankruptcy using the existing contract law and stole the company from the rightful post BK owners.
No depositor has lost money,
Oh, that's like sub-prime is contained, or there has never been a nationwide slump in house prices sort of assurance eh? Yeah right....
Every reader here should flood this jackasses mailbox:
Jeff Sigmund - jsigmund@aba.com
The ABA I'm sure is asking The Fed to stop QE, ZIRP and debt monetization right?
WE have had Glass Steagall since the early 1930's, to protect- oh, that's right, THEY CHANGED THE LAW.
When push comes to shove, what happens? Are and is go right out the window. Our deposits are protected by law right up till the moment the government decides they aren't- and that can happen over night. You can go to bed on Friday night and wake up on Saturday morning and find that all U.S. bank deposits have been frozen on Executive Order of the President.
The law says that bankers who commit financial fraud will be prosecuted and if found guilty by a jury, will go to prison. Not one banker is in prison.
The law is a sham and a fraud.
Mike Sedlock: Recall the statement by Jean-Claude Juncker, Luxembourg PM and Head Euro-Zone Finance Minister "When it becomes serious, you have to lie"
Assume the American Banking Association is lying.
Posession is 100% of the law when it comes to bankers. If they are holding it for you, you don't own it.
If they have it you don't.
Let's be succinct
Robert Rubin, Sandy Weill, Bill Clinton......were they kying..?
deposits and robots. Automation (robots) are eliminating millions of descent and crappy paying jobs every year leading to lower/flat tax revenues and a declining standard of living. All of the ECB/FED debt and money creation is an attempt to slow all of this stuff down and maintain consumption/GDP growth. Debt has to be serviced, so without job creation the elites are left with a "levy" on assets. It can't be stopped. Robots seemed to be the answer...they don't get sick, tired, or sue. Now we are starting to see the very beginnings of the consequences of robots replacing people. The problem with the levy is that it hurts the elite so it can't be be answer. Maybe a levy of assets on only the middle class??? Maybe lets make the middle class slaves??? You know learn from the poor. Lets leave the "robot masters" alone.
Remember the last time they reassured us about bank deposits in 2009, a run had already began.
This could indicate that they are already starting to see unusual withdrawals.
the very facts they suddenly started talking about safety means they are getting nervous and the safety there is no more
I keep seeing how the cyprus is "unprecedented theft". It's not. The US government did the same thing when FDR tool office.
They declared a one week bank holiday, confiscated gold, and devalued the currency by 2/3rds (a purchasing power loss). And they created a stability fund called the FDIC which everyone knows couldn't possible cover a bank run.
"The FDIC isurance fund has over $25 billion in reserves..."
And Zero Hedge noted the other day that the TBTF banks were gambling in the stock market with 850 billion of depositors money. What happens if there is a major crash?
Isn't this what happened in 1929- banks were gambling on Wall Street with depositors money?
When you next make a deposit in a US bank (i.e lend the bank money at 0.01% interest) don't forget to ask them what their FICO score is!
Bullshit.
I am sooo reassured by that announcement that I'm going to the shop today to sell all my metal for dollars, deposit half in Chase bank, and buy JPM with the other half.
The US .gov is just plain lazy when it comes to printing money or they just hate cash (more likely). They only do it with 1s and 0s. When was the last time you saw a new $100 bill?
Haha - yet again they obfuscate the facts, basically lying to Americans.
FDIC and SIPC protect for bank failures only.
In Cypress the bank is not failing - the govt does not have any money.
You could protect each account for $150 million and it would not matter. The US govt applies a WEALTH TAX and there is nothing those agencies can do. Insurance does not do dick about taxes, fines or levies. The money can and will leave your account.
Fractional Reserve Banking Bitches
I didn't realise the USA still used The Crown on its announcements to the Subject Peoples
If I had anything in the bank right now, I would be in line to withdraw it.
Good luck with those paper promises.
Nothing to see here - this will get no traction - unless you're in New Zealnd!
National planning Cyprus-style solution for New Zealand"If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out."
Full story here:
http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm
Once the cat's out of the bag, watch how many think this is a good idea.
Since this Cyprus incident isn't likely to go over as the Central Planners planned, the biggest fear in my mind is, "What will they think of next."
Nothing is confirmed until it is denied.
Flaw in the ABA's logic: Cypriot depositors have deposit insurance. How is that working?
for FDIC insurance to kick in a bank has to fail. if the powers that be decide that they cannot allow said bank to fail and resort to writing/approving a law that confiscates a part of your deposit at said bank then FDIC continues on like nothing to see here without paying out a dime. the rule of law is preserved period.
at the end of the day why are we all suprised? in a system where a loan is an asset and there is little capacity to service said loan left something's gotta give. those that cant service their debts to the banks shouldnt be offended that the banks admit not being able to service your loans (or return the principal) to them.
Don't believe a word they say...
They will throw you under the bus to save themselves in a heartbeat, this is war...
"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"
So let me get this right.
There is "over $ 25 Billion" in reserves.
And the banking industry pays in over $ 12.3 billion a year
that works out to just over 2 years of payments(2x12.3=$24.6)
Where is all the other years bank industry moneis go ?
Ps....
The banker says DON'T buy silver cause it will NEVER go over $29......thats the line in the sand....
Pss....fuck yous bankers........FUCK YOUS....
HANG EVERYONE.
Trust the FEDs? The FEDs have proven that rule of law does not apply to bankers and politicians. Anybody who trusts the FDIC or any other FED institution is a fool.
http://www.trendsresearch.com/SubscriberArea/gerald-celente-goldmoney-march-13-2013
No panic here. I made a deposit into my local coin shop yesterday. BRILLIANT!
The FDIC is designed to handle a rogue bank or two. It cannot handle systematic failure. Another approach would be necessary.