General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBail-Ins Begin: a Crisis Worse than ISIS? by Ellen Brown
http://ellenbrown.com/2015/12/29/a-crisis-worse-than-isis-bail-ins-begin/While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US. Poverty also kills.
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At the end of November, an Italian pensioner hanged himself after his entire 100,000 savings were confiscated in a bank rescue scheme. He left a suicide note blaming the bank, where he had been a customer for 50 years and had invested in bank-issued bonds. But he might better have blamed the EU and the G20s Financial Stability Board, which have imposed an Orderly Resolution regime that keeps insolvent banks afloat by confiscating the savings of investors and depositors. Some 130,000 shareholders and junior bond holders suffered losses in the rescue.
The pensioners bank was one of four small regional banks that had been put under special administration over the past two years. The 3.6 billion ($3.83 billion) rescue plan launched by the Italian government uses a newly-formed National Resolution Fund, which is fed by the countrys healthy banks. But before the fund can be tapped, losses must be imposed on investors; and in January, EU rules will require that they also be imposed on depositors. According to a December 10th article on BBC.com:
The rescue was a bail-in meaning bondholders suffered losses unlike the hugely unpopular bank bailouts during the 2008 financial crisis, which cost ordinary EU taxpayers tens of billions of euros.
Correspondents say [Italian Prime Minister] Renzi acted quickly because in January, the EU is tightening the rules on bank rescues they will force losses on depositors holding more than 100,000, as well as bank shareholders and bondholders.
. . . [L]etting the four banks fail under those new EU rules next year would have meant sacrificing the money of one million savers and the jobs of nearly 6,000 people.
That is what is predicted for 2016: massive sacrifice of savings and jobs to prop up a systemically risky global banking scheme.
Bail-in Under Dodd-Frank
That is all happening in the EU. Is there reason for concern in the US?
Keep reading..........THen think about using a Credit Union instead of a bank.
safeinOhio
(32,674 posts)FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA), time deposit such as a certificate of deposit (CD), or an official item issued by a bank, such as a cashier's check or money order.
FDIC insurance covers depositors' accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit.The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.
leveymg
(36,418 posts)safeinOhio
(32,674 posts)but I think they raised it to $250K.
I also think it is per bank, so don't put all your eggs in the same bank.
leveymg
(36,418 posts)hollysmom
(5,946 posts)Every cent of every deposit up to the FDIC limit will be paid to the depositor.
hollysmom
(5,946 posts)Nye Bevan
(25,406 posts)If necessary they will borrow or print the money.
http://banking-law.lawyers.com/consumer-banking/the-fdic-can-it-go-bankrupt.html
hollysmom
(5,946 posts)if this requires any voting by them, do you think what ever will pass? You are entitled to the money, but you know who has been treating entitlement as a bad word.
Nye Bevan
(25,406 posts)Again, one thing you do not have to ever worry about is your FDIC insured bank deposit up to the limit.
rhett o rick
(55,981 posts)Nye Bevan
(25,406 posts)If they have 3 accounts, one in the husband's name only with $250k, one in the wife's name only with $250k, and a joint account with $500k, the entire $1 million will have FDIC protection.
http://www.bankrate.com/finance/savings/fdic-insures-bank-deposits-to-250-000-1.aspx
rhett o rick
(55,981 posts)both you and your spouse can get the limit, again I believe.
Nye Bevan
(25,406 posts)And married couples can get a total of $1 million insured per bank by having 3 accounts as explained above.
jamzrockz
(1,333 posts)is that even if the money is not confiscated, inflation reduces the value of the deposit 3-5% every year. Which is definitely worse than return the average investor will get from investing in stocks.
safeinOhio
(32,674 posts)no risk, compared to stocks, in banks. Inflation has been more like 1 and a half to 2%. Deflation is more likely. Inflation is more likely in an expanding economy.
I wouldn't put all of my savings in any one place.
GummyBearz
(2,931 posts)And the risk is starting to seem higher...
leveymg
(36,418 posts)And financial panics. But hey who cares about depositors. They're small enough to fail.
pansypoo53219
(20,974 posts)Ferd Berfel
(3,687 posts)IT's fucking GAMBLING. FUCK YOU.