US banks shaken by biggest deposit withdrawals since 9/11

US banks shaken by biggest deposit withdrawals since 9/11

rt.com

US Federal Reserve is reporting a major deposit withdrawal from the nation’s bank accounts. The financial system hasn’t seen such a massive fund outflow since 9/11 attacks.

The first week of January 2013 has seen $114 billion withdrawn from 25 of the US’ biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed. Financial analysts suggest it could be down to the Transaction Account Guarantee insurance program coming to an end on December 31 last year and clients moving their money that is no longer insured by the government.

(visit the link for the full news article)

I really don't know what to think about this other it's not a good sign
Beyond that, I'm clueless. I'm posting with hopes to understand what this article says. Really says.

Is this significant?
Is this not a big deal?

Please note: I did a search for this article and got no results. I'm surprised this hasn't been posted yet. Maybe not a big deal???

rt.com
(visit the link for the full news article)

Well, you know the old saying, "watch the money trail" (or something like that), so I, for one, find this interesting! I wonder if it at all ties in to the stories/reports of all the head honchos at world companies retiring/quitting last year. I'm going to find that link and add it in here. People were shaken up by those resignations and there were two camps of thought: 1. companies were cleaning house and this was a good thing, or 2. people were in the know and jumping ship prior to either a catastrophic financial event (like collapse of the dollar) or a cataclysmic natural event of some kind. Now with this, one has to wonder what is happening? There was also the recent news of Warren Buffet dropping around 30% of his interest in multiple companies, mostly US companies. May all be related?

ETA:

Here's a thread about the resignations:

www.abovetopsecret.com...

Warren Buffet:

www.dailysilvernews.com... imulate-the-economy/1582/

Everyone is getting out from under the FRN to avoid being crushed. Now is the time to buy precious metals before they sky-rocket and before the dollar goes up in smoke!

Picture this scenario and please give input.... US Dollar fails. What would we do? and, How bad would this effect our imports and exports to other countries... I don't want to use gold. I'm color blind and would mistake my money for rocks.. sigh

reply to post by ajay59


I take it the FRN means Federal Reserve Note?

Told ya I was clueless.

reply to post by nerdyclutzyblonde


Indeed. You are correct!

Star to OP, This is scary~ Everything is being rolled up in a turd and sooner or later someone is going to give the final stir.

With everything that's been happening in the world could this be the "Preverbial" Nail in the coffin? In terms to the financial fall of the United States of America?

Will the money trail leed to the collapse of the FRN?

Scary scary. I look forward to updates.

Originally posted by ajay59
Everyone is getting out from under the FRN to avoid being crushed. Now is the time to buy precious metals before they sky-rocket and before the dollar goes up in smoke!

edit on 25-1-2013 by ajay59 because: (no reason given)

This is the most important reply of the thread... 1 million stars!

This only about 2%. Surely no impact until it starts to hit 20%.
Also its normal for folk to spend more in Jan.

Our economy is set to collapse sometime in march. When the citizens go rampant due to food needs martial law will be instated.

reply to post by nerdyclutzyblonde


I think that somebody knows their money isn't safe in the banks...

reply to post by nerdyclutzyblonde


Yes, it is significant, other sources not as controversial as RT.
are reporting it also.

Mostly due to the change in FDIC insurance limits effective December 31, 2012.

www.bloomberg.com...

Clients of the largest U.S. banks withdrew funds this month at the fastest weekly pace since the Sept. 11 attacks as a deposit-insurance program ended and customers tapped into their year-end cash hoards.

www.businessweek.com...

reply to post by nerdyclutzyblonde


Smart people, taking into consideration that all the big banks and investment firms that control the wealth, retirement and pensions in this nation including the housing market are literally bankrupted and on life support thanks to the almost 100 billion dollars that they get from the fed every month with the QEs.

So If I have a large investment account or a large retirement account I would be transferring my money or changing my money into something more substantial or hard assets like gold or other precious metals.

reply to post by OptimusSubprime


The simplest solution for we the people at this point is, to unify the several states to become "The Several States United" or whatever trips your trigger, leave the 68.3 square miles of Washington DC as the UNITED STATES OF AMERICA to deal with THEIR bad business practices and whatever country who has a bone to pick with them! None of us put our name on any document or contract to assume responsibility for a debt they incurred. We simply divorce our self from this sham of a government.

rt.com...

damn, beat me to it....too slow

Taking your cash out of banks and holding on to paper dollars is a recipe for disaster. Invest in energy, mining, and soybeans.

Actually, this "TAG" program was known to be ending...

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a final rule to implement section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Section 343 provides temporary unlimited coverage for noninterest-bearing transaction accounts. This separate coverage will become effective on December 31, 2010, and will end on December 31, 2012.

The final rule revises the FDIC’s deposit insurance regulations to include noninterest-bearing transaction accounts as a new temporary deposit insurance account category. All funds held in such accounts are fully insured, without limit, and this coverage is separate from, and in addition to, the coverage provided to depositors for other accounts at an insured depository institution.

Noninterest-bearing accounts, as defined in the Dodd-Frank Act, include only traditional, noninterest-bearing demand deposit (or checking) accounts that allow for an unlimited number of transfers and withdrawals at any time, whether held by a business, individual or other type of depositor.

Many argue that there is no more liquidity crisis to merit the continuation of the program, thus much of this wealth is simply being shuffled around to different account types - depending on the entity doing the shuffling.

The Fed seems to still be squeezing the money supply down (creating more power for them to wield with the politicians) ... as a result - money being scarcer - the poor will remain poor, the middle class will remain under their yolk, and the upper class will continue to play into the gimmick which takes the form of making money without producing anything ... It's the Fed's show ... it's called monetary policy and they rule us with it... thank you Democrat and Republican prostitutes.

Originally posted by RP2SticksOfDynamite
This only about 2%. Surely no impact until it starts to hit 20%.
Also its normal for folk to spend more in Jan.

but it isn't from spending more. If it were it would just transfer from one bank to the next, or one account to another, with no net loss to the system. This money is leaving the system, meaning that it is either going in shoe boxes under the bed or being used to buy PMs or other commodities.

reply to post by Newagekid2012


how do you know by march the collapse will be?