Sunday, May 24, 2015

Can you still trust banks when the FDIC has less reserves to cover depositor losses than in 2008

We have already had examples of bank bail-ins.  We have had not just the United States, but all members of the G20 enact a resolution mandating legislation to allow for bank bail-ins, and the confiscation of customer deposits.  We have had the United States under Dodd-Frank declare your deposits as unsecured creditors, and at the lowest end of the scale for reimbursement in the advent of a bank collapse.
We have had financial institutions such as J.P. Morgan and Bank of America con Congress into allowing their derivative assets to be placed under the FDIC as a primary creditor, and according to the agencies own 2014 annual report, the deposit insurance corporation has even less reserves to support account holders in the advent of a bank failure today.
So why do we still trust banks with all this evidence showing that during the next banking or financial crisis, Americans will lose most or all their money?


Post a Comment