The FDIC Secret - 99 Years To Pay! An ATS MIX Investigation

For what it is worth; everything I'm finding is warnings about this being a lie used by dishonest financial advisor's and investment schemes. Even the BBB had a warning about it. As I understand it, if someone says it, look out and don't give them any money.

Does your friend at the bank know about your job and what ATS is about? Could he have been having some fun at your expense?

I was in Portland Oregon during the Savings and Loan debacle. There was a mini-panic at one institution involved. The FDIC had it open and all funds available within one day. I recall being amazed at how fast they responded and I wondered how they could take over the savings and loan and have it back up that fast. They did it though. Within a week it went from panicked people to no worries. I believe it worked just like it was supposed too.

Originally posted by Blaine91555

I was in Portland Oregon during the Savings and Loan debacle. There was a mini-panic at one institution involved. The FDIC had it open and all funds available within one day.

I believe a major point of concern here, is not if ONE bank or institution closed up... But many!! Sure, it sounds like they are equipped to handle one. But I think the discussion is beyond that.

I don't have any evidence yet of the FDIC takeing ninety nine years to pay a depositor yet, but I will keep looking. I will also keep watching this thread. I do agree that there would be a safe guard in place in case a major bank or something of the like happens and the FDIC has to pay more then expected.
I am thinking that the fall out from the savings and loan scandal in the early and mid eighties might be a good reference point.

As soon as possible

How Safe is My FDIC-Insured Bank Account?
by Dr. Chris Martenson | April 14, 2008

How long does the FDIC have to repay me if things go bad?

Here things get murky. We turn to Section 11 of the act and find this (emphasis mine):

(f) PAYMENT OF INSURED DEPOSITS.-- (1) IN GENERAL.--In case of the liquidation of, or other closing or winding up of the affairs of, any insured depository institution, payment of the insured deposits in such institution shall be made by the Corporation as soon as possible, subject to the provisions of subsection (g), either by cash or by making available to each depositor a transferred deposit in a new insured depository institution in the same community or in another insured depository institution in an amount equal to the insured deposit of such depositor.

That only says “as soon as possible” and sets absolutely no time limit or maximum. Taken to the extreme, it might be impossible for the FDIC to ever make depositors whole again, and this is one of dozens of such “outs” that exist in the document. Remember, this act was written in 1933 when money was gold, times were uncertain, and government lawyers were exceedingly careful to avoid locking the government into any possible financial black holes. Full Text

Contact: [email protected]

Acting chairman of the FDIC, Andrew Hove, in April 1998, speaking 'before' the explosion in leveraged MBS: The resources of the funds also appear sufficient to handle the failure of a large insured institution. Unprecedented failures of a number of very large financial institutions simultaneously would be more problematic. Federal Reserve Bank of Minneapolis



With regard to Jefwane' link:

I believe the FDIC is now in the business of designing mortgage rescues...because like every other US financial authority, it failed to regulate the questionable investment practices of it's client banks.

Operation Benevolent Punt...or whatever they choose to call the next cover program, will not be an act of compassion on behalf of the little people. A google search: mortgage fraud investigations...shows that state and federal authorities are currently overwhelmed. The foreclosure rate, and the re-setting of subprime mortgages are definitely problematic...but they represent a drop in the bucket compared to the financial liabilities associated with investor lawsuits. If there was fraud in the origination process (massive), investors in mortgage bonds, i.e. central banks, funds, and pensions worldwide, have the contractual ability to require banks to buy back these near worthless loans at face value. This is the story, behind the story, of which the FDIC is well aware. I doubt there is enough capitol in the US banking system to cover a fraction of this potential debt.

A single bank might fail and go into quick recevership as long as public perception can be managed against a run. In a broader systemic failure...takeovers & mergers would be non-existent......FDIC - SOL.

reply to post by Dave Rabbit


Many people also have the misconception the the FDIC is a government agency... IT IS NOT!!!!! it is no more federal then federal express and is subject to the same bankruptcy laws of any corporation....Also FDIC margin requirements are a paltry 1.5 percent..............
Need I say more....

reply to post by jefwane

FDIC just increased there margin to 1.5 from 1.0 I believe...reportedly many small banks are failing that we don't know about.........

The savings and loan debacle was contained and the situation we have is much worst with the subprime and housing market and is affecting EVERYTHING... the FDIC will always pay out when times are ok.. but realize legally the FDIC is a corporation just like any other....and can go under just like any other. Yes congress can step in and probably infuse money to avoid BK... but what IF we are in a national emergency? I notice you question things which is good, however this is no conspiracy theory this is a fact, if too many banks fail the FDIC will have to stretch out payments to all the insured because the FDIC has ONLY a %1.5 margin requirement.. if they go over they can take there sweet time.. and from a BUSINESS point of view as an insurance company this makes total sense... THE FDIC is a corporation and it is not a government entity therefore all the laws\rules that apply to a corporation still apply here.

This is one of the many reasons I am against banks! The entire banking system is a scam to put money in the hands of the bankers! I advise everyone to close your bank accounts TODAY and use cash. If you must invest, buy precious metals. Don't trust the FDIC to save you when it all comes crashing down!

www.svpvril.com...

CHAPTER 401 > § 40102
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§ 40102. Definitions
(41) “public aircraft” means any of the following:
(A) Except with respect to an aircraft described in subparagraph (E), an aircraft used only for the United States Government, except as provided in section 40125 (b).
(B) An aircraft owned by the Government and operated by any person for purposes related to crew training, equipment development, or demonstration, except as provided in section 40125 (b).
(C) An aircraft owned and operated by the government of a State, the District of Columbia, or a territory or possession of the United States or a political subdivision of one of these governments, except as provided in section 40125 (b).
(D) An aircraft exclusively leased for at least 90 continuous days by the government of a State, the District of Columbia, or a territory or possession of the United States or a political subdivision of one of these governments, except as provided in section 40125 (b).
(E) An aircraft owned or operated by the armed forces or chartered to provide transportation to the armed forces under the conditions specified by section 40125 (c).

--------------------------------------------------------------------------------------
And, I might add, what Airports is Michael Chertoff in charge of? lets consult the 49 USC again for that one.
(a) IN GENERAL- Chapter 1 of title 49, United States Code, is amended by adding at the end the following:
`Sec. 114. Transportation Security Administration
`(e) SCREENING OPERATIONS- The Under Secretary shall--
`(1) be responsible for day-to-day Federal security screening operations for passenger air transportation and intrastate air transportation under sections 44901 and 44935;
H.R.1086
Sec. 49101. Findings
`Congress finds that--
`(1) the 2 federally owned airports in the metropolitan area of the District of Columbia constitute an important and growing part of the commerce, transportation, and economic patterns of Virginia, the District of Columbia, and the surrounding region;
`Sec. 49103. Definitions
`In this chapter--
`(1) `Airports Authority' means the Metropolitan Washington Airports Authority, a public authority created by Virginia and the District of Columbia consistent with the requirements of section 49106 of this title.
Sec. 49106. Metropolitan Washington Airports Authority
`(b) GENERAL AUTHORITY- (1) The Airports Authority shall be authorized--
`(A) to acquire, maintain, improve, operate, protect, and promote the Metropolitan Washington Airports for public purposes;
*(note) 44935 deals with screening potential TSA employees, rather lengthy.
Does that sound like any “aircraft’ most people catch? Now you know what the “public Purpose” means in section (A) above.
4 U.S.C. §§ 71 & 72:
Sec. 72. Public offices; at seat of Government

All offices attached to the seat of government shall be exercised in the District of Columbia, and not elsewhere, except as otherwise expressly provided by law. (July 30, 1947, ch. 389, 61 Stat. 643)

Mod edit: added ex tags where best I could figure out they belonged

[edit on 5/6/2008 by Gools]

There is no money to insure, so all of the debate is kind of silly. If one bank goes under, they just transfer your account to another bank. Sure, that is because there is no money and any bank can hold your debt notes for you.

Does anyone still believe that banks have huge amounts of CASH on hand anyway?

There is not even enough CASH in circulation for everyone who has money to get it, so whats the point of the FDIC anyway. More smoke and mirrors is all.

To the OP, your friends job is to maintain the illusion of security in a money system that runs on nothing, no Gold, no Silver, no real money. Your money in any bank is no more "real" then the words I am typing here.

This is sounding scary,I too would only deposit what they would insure,guess it's getting close to pulling out all my money convert to cash,bury it in coffee cans in the yard,when you think about it only have to look back to 33

oldtimer, to hell with cash, buy storable food, a water filtration system and learn to live with less of everything. Better have some kind of network of friends you can count on to live with out of your area so you are not forced into a government concentration camp as things go south.

Invest yourself in an excersize program, at any age. We may be walking pretty soon, so get used to it now. This whole train is heading for a major wreck and Federal Reserve notes are going to be best used for TP and starting fires with, they are just paper after all.

Originally posted by Blaine91555

Does your friend at the bank know about your job and what ATS is about? Could he have been having some fun at your expense?

No. I don't disclose what I do. So here again.... what is his motive?

Dave

The "As Soon As Possible" is a red flag to me and I think this is what my friend was basically talking about. It is NOT SPECIFIC. As soon as possible could be 1, 10, 40, 70 or more years. That is NOT what the public believes.

Dave

Originally posted by WiseSheep

If somebody is going to sit on wealth, it should be in metal. Gold and Silver have been money since the beginning and will be until it's time to cast it out in the streets.

I certainly doubt any archaeologists have found any 5000 year old linen paper receipts backed by faith, which still are worth their face value, but a 5000 year old ounce of gold is still worth an ounce of gold..

You can't eat or drink gold and silver. The most valuable things to have are land, ability and knowledge to grow your own food, tools for fixing things and maybe lastly some gold or silver, but in the scheme of things the most valuable things, I believe are land with water and a place to live in.

Right.. I don't know WHY you decided to make two identical threads, so damn annoying ......

So here is the same response, since I guess you want this thread to be more prominent.

reply to post by Dave Rabbit


Sorry brother, but your banker is .. wrong.

The FDIC has, essentially unlimited funds. In 1929 when banks began collapsing because money stores where far lower then actual withdraws, they went bankrupt. Now however, since Gold no longer backs our money, you could make an unlimited supply. However, you risk hyper inflation, but if it is enough to make sure enough people get the "hard amount" of money they are owed, then it could dispel panic. They see the bank didn't go under, they have their money, and they put it back into the bank.

Of course, inflation goes through the roof.

The FDIC only keeps enough money in it's vaults to cover impending bank collapses. For instance, if Bank of America went insolvent, the FDIC would have a fund injection to cover the entire asset value of accounts under 100k. If the bank re-establishes it's self and is no longer in danger, the FDIC will not hold onto the funds any longer, as they are not needed.

If all the banks went insolvent, it doesn't matter if the FDIC gives you your money back anyways because honesty, the economy already tanked and your 125k might buy you a weeks bread and butter.

So dave, the point of this long winded response -- don't worry.

And if you have any other questions, U2U me so we don't discuss your money in public if you have concerns about your money in the bank. What are you getting, 1%? But seriously, don't worry about the FDIC, it has never failed and is essentially fool proof -- you get our money no matter what, granted, it might not worth much when you get it.

Also the time frame that I have always heard was 1-6 weeks to get your funds, I will ask around the office to see if anyone knows an exact time frame.

reply to post by Dave Rabbit


This definitely has my interest. I can see how if the the bottom fell out in a big way this could be a real issue. There may be things that could happen that are so large in scale there is no way to protect us financially.

Originally posted by Rockpuck
reply to post by Dave Rabbit

 

Also the time frame that I have always heard was 1-6 weeks to get your funds, I will ask around the office to see if anyone knows an exact time frame.

Yeah Rock..... that's all well and good..... but the point is HOW LONG can they take to PAY UP!. My banker never said they wouldn't pay up..... only that they could take up to 99 years (which may be simply a number out of the sky but FDIC used the same number). And I totally agree with you about the RETURN, but what blew me away is the statement that basically there is NO SPECIFIC TIME LIMIT that FDIC must comply with to honor what is insured up to the 100,000.00. The majority of Americans do not have the luxury of even your scale of up to 6 weeks..... people have to eat, pay rent, utilities and on and on. I want a document from the FDIC that says IN WRITING the time frame. And if it cannot be produced...... that, my friend, is what I am mad as hell about not only for me and the heirs of my mom's estate..... but for every person who has money invested in an FDIC insured institution and has been misled that it wouldn't be FAST.

Dave

reply to post by Dave Rabbit


Just like lawyers say Dave.

"Put it in writing"

Most people that have a hidden agendas will not put what you ask for in writing, or if they do it will be vague, and/or begging the question.

The whole stocking up on precious metals thing, and assuming the US dollar had collapsed.... I am guessing it would NOT be suggested to have foreign currency, either? I know that many suspect that when America's market takes a hit, everyone else will too ?