posted on Apr, 22 2013 @ 06:09 PM
The Fed have come out and stated that in the event of a bank failure in the US depositors WILL lose their money.
In a speech titled "Regulating Large Financial Institutions" Stein made something very clear: if and when a TBTF fails, and since this time is not
different, and a failure is only a matter of time, depositors will lose everything (courtesy of some $300 trillion in gross unnetted liabilities which
once there is a counterparty chain failure, suddenly become very much net and immediately marginable - a drain of cash), which now that Cyprus is the
template, is to be expected. Not only that but Stein makes it all too clear that part of the Dodd-Frank resolution authority guidelines, a bailout is
no longer an option.
This of course is pretty much inevitable in Europe (UK PDF
) and in
Canada (PDF of 'budget')
also, where governments are busily writing into law the
facilities to allow them to 'borrow' our savings in exchange for worthless shares in defunct banks.
Whilst Zero Hedge is the source of my information I particularly want to draw your attention to the absolutely stunning graphics that
The saying that a picture speaks a thousand words is very true with their work. I show a very squashed up image of one of their pages but you need to
go to the site to really understand. The infographics put the whole insured deposits thing in place for me.
You think your deposits are safe because they are insured? Think again.
Click on the image below to get a good understanding
of how and why you will be waving your hard earned cash goodbye if one of these banks
fails. (Continues after the graphic)
See also: (And this is a must read as well)
The Confiscation Scheme
Planned for US and UK Depositors
Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the
bank’s, and we become unsecured creditors holding IOUs or promises to pay. But until now the bank has been obligated to pay the money back on
demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get
stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so
they can have ready cash to pay the bills.
And worse still.....
No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC
insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums
paid by private banks.
You know what you need to do........................go do it!
edit on 22/4/2013 by PuterMan because: Green decoration was required.