Midsize Banks to Feds: Insure All Our
Deposits for Two Years
Red State,
by
Bob Hoge
Original Article
Posted By: Dreadnought,
3/20/2023 12:35:44 AM
A coalition of midsize banks sent a letter to Treasury Secretary Janet Yellen, the Federal Deposit Insurance Corporation (the FDIC), the Comptroller of the Currency, and the Federal Reserve requesting that the FDIC insure all their deposits for the next two years, according to Bloomberg.
The request comes amidst a banking crisis that started earlier this month with the collapse of Silicon Valley Bank (SVB) and then Signature Bank. The group wrote:
“Doing so [insuring all deposits] will immediately halt the exodus of deposits from smaller banks, stabilize the banking sector and greatly reduce chances of more bank failures,”
Reply 1 - Posted by:
stablemoney 3/20/2023 12:39:48 AM (No. 1429105)
The claim by this group that extending FDIC insurance will halt the withdrawal of deposits from their banks is blatantly false, a claim made by people not qualified to run a bank. The only thing that will halt customer withdrawals is to pay them a rate of interest over the near 0% they have been offering. The group might also read a basic banking text about the matching of asset and liability maturities to avoid the bankruptcy of their banks.
7 people like this.
Reply 2 - Posted by:
Californian 3/20/2023 12:56:57 AM (No. 1429113)
They coughed up dough for SVB to save their leftist techie pals.
They gave the mouse a cookie. Now he wants a gallon of milk, 2 more boxes of cookies and a massage at the health club.
9 people like this.
Reply 3 - Posted by:
DVC 3/20/2023 1:46:50 AM (No. 1429143)
Uh....NO.
6 people like this.
Reply 4 - Posted by:
Maggie2u 3/20/2023 2:17:33 AM (No. 1429162)
I have a serious question, not being sarcastic or funny, O.K.? Years ago someone told me that if a bank failed you might get your money back IF you don't owe the bank money in the first place, such as a mortgage, car loan or regular loan. That that amount would be deducted from your savings before you would get it. Is this true? Because if it is, if you owe your bank money, you should probably get your savings out now before the government gobbles it up.
2 people like this.
Reply 5 - Posted by:
Birddog 3/20/2023 2:25:28 AM (No. 1429163)
Here locally, Ohio, retired teachers are up in arms...their leadership had $20million that went poof at SVB.
WHY would an Ohio state teachers retirement fund send that much funds to a small obscure bank in NorCal? Particularly when the Teachers Retirement/Insurance/Annuity fund, TIAA ,is a $Trillion "Non Profit" corporation, ranked between Catapiller and Oracle on the top 100largest US corporations list, is in the top 500 Global corps.,is the largest Ag Landowner in America, the 2nd largest property management company in the world, owns multiple banks, insurance companies, buildings, hedge funds, casinos...
Teachers are particularly upset in that their retirement fund has lost over $50Million in the last couple of years, while record profits are being logged by most large corps, AND the directors of the fund are giving themselves multi $Million bonuses.
4 people like this.
Reply 6 - Posted by:
Birddog 3/20/2023 2:38:12 AM (No. 1429166)
Just so you know...when you open an account that is going to be larger than the $250k FDIC guarantee? Just add "beneficiaries" to it, each beneficiary adds another $250k to the covered amount...and if something happens to you, the funds go directly to those named without probate/inheritance taxes.
You can divvy up the benifit in any percentages you choose, change the names or amounts...or delete them entirely at will....with the click of a mouse. Whether someone could list every share holder/investor in a much larger account? I don't know for sure, but I would ask if I was involved in one.
1 person likes this.
Reply 7 - Posted by:
NotaBene 3/20/2023 4:20:28 AM (No. 1429174)
Goes to show we cannot go to war against Russia, leave 84 Billon in planes, humvees and machine guns in the field of defeat in Afghanistan, and expect prosperity for wage earners. Only rich Marxists benefit. Of course, the Ukrainians must get paid State salaries and Pensions by US,
Ukraine lost and you know it.
4 people like this.
Reply 8 - Posted by:
mifla 3/20/2023 5:13:15 AM (No. 1429186)
While you are at it, pay my mortgage, get me a new car, and guarantee to pay off my credit cards for the next two years. I will let you know if I need anything else.
4 people like this.
Reply 9 - Posted by:
Strike3 3/20/2023 8:29:15 AM (No. 1429265)
It's only fair to ask since Joe and his bumbling band of incompetent boobs caused the inflation and instability that put the banks in danger. Who would have thought that interest rates would go through the roof when the "lead from the middle" putz was selected? I pinch myself when I say this but maybe Hillary would have done less damage than Pinnochio.
0 people like this.
Reply 10 - Posted by:
planetgeo 3/20/2023 9:46:16 AM (No. 1429328)
Found out something VERY interesting about who was among the uninsured depositors at SVB, and am not surprised this has been kept hush-hush by the corrupt media. It turns out that none other than GAVIN NEWSOM, (Governor Hairgel of woke CA) was one of the depositors. Well, well, well...might be good to keep that info handy in case he decides to run for some "higher office."
1 person likes this.
Reply 11 - Posted by:
Venturer 3/20/2023 10:09:50 AM (No. 1429355)
Many people may be withdrawing any monies they have over the FDIC insured limit, but they are more than likely putting it in another bank or another account. They aren't taking it home and burying it in their back yard.
0 people like this.
Reply 12 - Posted by:
Brunsong 3/20/2023 10:20:50 AM (No. 1429370)
They just nationalized the banking system in the US.
0 people like this.
Reply 13 - Posted by:
Gordon Mills 3/20/2023 10:33:31 AM (No. 1429379)
#4, do you recall that when the Savings and Loan crisis occurred the feds required savers to return withdrawn funds? The feds can throw you in prison if you refuse to cooperate.
0 people like this.
Reply 14 - Posted by:
davew 3/20/2023 12:25:27 PM (No. 1429480)
Maggie2U identified the elephant in the room when it comes to banks. The money that you deposit belongs to the bank, not you. The money that you borrow from the bank is tied to a promise to repay it (mortgage, car loan, refinance loan) which also belongs to the bank. They can and do sell or borrow against these loans to make more loans. If the bank fails, it uses your money and/or promissory notes to pay off their creditors. The FDIC is there to pay you back for the money the bank took from you to pay off its liabilities. They don't want average people to understand this because they know there are alternatives to bank accounts where you don't have to give your money to them.
These are called brokerage accounts like those at Schwab and Fidelity. Brokerage accounts are managed but not owned by brokerage companies. Your deposits are swept into a custodian account in your name with a third-party SEC regulated firm separate and untouchable by the brokerage firm. If the brokerage company fails, the custodians just sign up with someone else and you never know the difference. They can never tie up your money to pay off brokerage company liabilities. They can never be hit with a "run" because the custodians have trillions of dollars in assets. In the extreme case when the money market peg of $1 per share is threatened as happened with the financial crisis in 2008, the Federal reserve and money center banks have unlimited resources to preserve the peg and stem any concerns about redemptions.
Bottom line, if you want to sleep well at night, transfer you bank accounts to a brokerage account like Schwab. Keep your money as your money and don't turn it into the bank's money.
0 people like this.
Reply 15 - Posted by:
skacmar 3/20/2023 8:23:34 PM (No. 1429775)
And just how will insuring mid sized banks for two years cost? Fees on accounts will go up. Accounts without fees will soon have fees.
0 people like this.
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