More Bank Failures, Less Backup Cash – Are Your Deposits In Danger?
Taylor Kenney - ITM Trading Mar 25, 2024
Are your savings truly safe? Uncover the shocking truth: a drained FDIC fund, secret problem banks, and power consolidation within megabanks.
VIDEO SUMMARY:
- The FDIC deposit insurance fund is drained, struggling to recoup losses from recent bank failures
- Banks and the FDIC operate on a fractional reserve system, with banks not required to keep deposits on hand and the FDIC only keeping 1.35% of insured deposits
- The government’s confidential “problem bank list” doesn’t accurately represent the number of banks in trouble
- FDIC bank rescue practices lead to a consolidation of power and wealth within megabanks, which are concentrated and riddled with risky bets and toxic assets
- The banking system is at risk of collapse, and the FDIC is ill-equipped to handle the failure of even mid-sized banks
- In a crisis, depositors face the risk of being “bailed in,” with banks freezing accounts and taking deposits to make themselves whole
- Storing wealth in cash in the current system carries serious risk, and it’s crucial to explore ways to protect your finances outside of the system
CHAPTERS:
00:00 Events Risking Your Deposits
02:26 Draining Funds
03:42 Problem Bank List
05:24 Megabank Takovers
SOURCES:
https://time.com/personal-finance/article/what-is-fdic-insurance/
https://www.ft.com/content/e1ce2ba6-89e3-4132-8061-02120cf8165d
https://www.jdsupra.com/legalnews/gao-report-calls-for-fdic-fed-to-fix-3080990/
https://www.fdic.gov/news/board-matters/2023/2023-11-16-notational-mem-d.pdf
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
https://www.fdic.gov/analysis/quarterly-banking-profile/fdic-quarterly/index.html
