Black People : AMERICANS WARNED BANK 'BAIL-INS' COMING

Discussion in 'Black People Open Forum' started by RAPTOR, Sep 29, 2013.

  1. RAPTOR

    RAPTOR Well-Known Member MEMBER

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    Experts say institutions will grab deposits without warning

    WASHINGTON – With the United States facing a $17 trillion debt and an acidic debate in Washington over raising that debt limit on top of a potential government shutdown, Congress could mimic recent European action to let banks initiate a “bail-in” to blunt future failures, experts say.

    Previously the federal government has taken taxes from consumers, or borrowed the money, to hand out to troubled banks. This could be a little different, and could allow banks to reach directly into consumers’ bank accounts for their cash.

    Authority to allow bank “bail-ins” would be in lieu of approving any future taxpayer bailouts of banks that would be in dire need of recapitalization in order to survive.

    Some financial experts contend that banks already have the legal authority to confiscate depositors’ money without warning, and at their discretion.

    Financial analyst Jim Sinclair warned that the U.S. banks most likely to be “bailed-in” by their depositors are those institutions that received government bail-out funds in 2008-2009.

    Such a “bail-in” means all savings of individuals over the insured amount would be confiscated to offset such a failure.

    “Bail-ins are coming to North America without any doubt, and will be remembered as the ‘Great Leveling,’ of the ‘great Flushing’ (of Lehman Brothers),” Sinclair said. “Not only can it happen here, but it will happen here.
    “It stands on legal grounds by legal precedent both in the U.S., Canada and the U.K.”

    Sinclair is chairman and chief executive officer of Tanzania Royalty Exploration Corp. and is the son of Bertram Seligman, whose family started Goldman Sachs, Solomon Brothers, Lehman Brothers, Bache Group and other major investment banking firms.

    Some of the major banks which received federal bailout money included Bank of America, Citigroup and JPMorgan Chase.

    “When major banks fail, they are going to bail them out by grabbing the money that is in your bank accounts,” according to financial expert Michael Snyder. “This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the Western world.”

    Given the dire financial straits the U.S. finds itself in, these financial experts say that Congress could look at the example of the European Parliament, which recently started to consider action that would allow banks to confiscate depositors’ holdings above 100,000 euros. Generally, funds up to that level are insured.

    Finance ministers of the 27-member European Union in June had approved forcing bondholders, shareholders and large depositors with more than 100,000 euros in their accounts to make the financial sacrifice before turning to the government for help with taxpayer funds.

    Read more at:http://www.wnd.com/2013/09/americans-warned-bank-bail-ins-coming/#coCbxE5OfPIjKRDH.01
     
  2. Alarm Clock

    Alarm Clock Well-Known Member MEMBER

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    But since there are other institutions for saving and holding money in this nation like credit unions and state and community banks, what should Black folks do with their money to keep it safe?
     
  3. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Good thing I don't have that kind of money in the bank






    ..
     
  4. Kadijah

    Kadijah Banned MEMBER

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    By WHAT authority???

    Thank God! I was getting p-a**ed scared for a minute! Scheesh! (and you know my "2nd" thought was to snatch my money and put it under the mattress!) :lol:

    Btw, what is the amount the government guarantees your bank deposits? Last I heard, I think it was something like up to $100,000. :huh:
     
  5. NNQueen

    NNQueen going above and beyond PREMIUM MEMBER

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    http://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation

    The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation operating as an independent agency created by the Banking Act of 1933.

    As of January 2013, it provides deposit insurance guaranteeing the safety of a depositor's accounts in member banks up to $250,000 for each deposit ownership category in each insured bank. As of September 30, 2012, the FDIC insured deposits at 7,181 institutions.[2] The FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages banks in receiverships (failed banks).

    The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. The FDIC does not provide deposit insurance for credit unions, which are insured by the National Credit Union Administration (NCUA).

    Insured institutions are required to place signs at their place of business stating that "deposits are backed by the full faith and credit of the United States Government."[3] Since the start of FDIC insurance on January 1, 1934, no depositor has lost any insured funds as a result of a failure.[4]
     
  6. MimiBelle

    MimiBelle Well-Known Member MEMBER

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    What sort of link is this?

    No matter. Maybe they'll chip away at it with increased fees and interest rates. Five or ten cents from every depositor, maybe. People count their dollars, not their cents.
    I've heard of that but I can't recall who told me about it. The context was similar, though.

    Anyway, much can be had when you just skim a little 'here and there'...*shrug* I could see that.
    But...to 'confiscate'? I mean, this article writes as though the banks are just going to grab entire paychecks from different accounts. Depositors be damned. *laugh*
    That's not realistic. Banks run on money. They need our money. It doesn't matter 'who' truly owns the deposit. The day that a financial institution is plainly observed 'snatching' from deposits in an abrupt way is the day that the financial sector will also collapse.


    Textbook rules don't apply to real life.
    For every rule, there's a loophole. For every wall, there are cracks. The toughest armor will have a chink or two. You've just got to look for the 'in'...or, if you're smart enough, create one.

    If they've the resources, time and smarts? Most people will do what they will. Financial institutions are no different.
    "...but, but, but - the govt isn't supposed to do that!"
    Meh. *shrug* There's a huge differentiation between unethical and illegal acts. The former may not result in a prison term, for one.
    ...and even then - with a good lawyer who can blur the lines and foster 'doubt' - sometimes, what constitutes an 'unethical act' could end up being chalked up to 'a matter of interpretation'.

    The govt isn't supposed to manipulate the markets but it is. Isn't it? The Fed Reserve isn't supposed to be buying up our T-bills to keep the country afloat but it is. Isn't it?
    ...because it can. *shrug*
    It looks like America's playing fast and lose with it's economy but it's actually something of a controlled situation. That's weird. The US dollar won't be falling (any time soon)...because too many have a vested interest in propping it up. Even now, countries are still fleeing into the dollar for safety.


    Still - ask China what it means to hold stock in the full faith and credit of the US Govt.
    Hell, China doesn't own America. If anything, America owns them.
     
  7. Kadijah

    Kadijah Banned MEMBER

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    There's a reason the government "guarantees" our bank deposits.

    There's a reason people in the Great Depression lost every dime they put in their bank accounts.

    I take this "warning" seriously.... which is why my 2nd thought was to learn from the lessons of history the Great Depression taught us and snatch my pennies outta the bank!
     
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