The FDIC just completed training all bank personnel to calculate deposit insurance coverage for Deposit Accounts, Revocable Trust Accounts and all other accounts held in banking institutions UNDER $1 B. in assets but what is the FDIC doing at banks over $1 B in assets?
We have been educated since 2010 that our bank accounts are insured for up to $250,000 per account? Why NOW does the FDIC feel compelled to conduct this training? Could small banks possibly be in more imminent danger of failing?
Did you know that over the past 30 years 70% of all banks, 7450 of 13,400, have failed or 248 a year. Banks under $1 B and over $1 B in assets have had similar failure rates from 66% to 69%. Today we have but 5950 banks and only 1775 banks hold assets less than $300 M. The five largest banks today hold 60% of all assets or $8.5 T of the $11 T estimated to be held in U.S. banks today and CANNOT meet Dodd Frank requirements in order to relieve shareholders of failure loses. Now even scarier is the fact that 70% of these assets are off balance sheet assets and held in the United Kingdom. We are totally entangled with the Bank of England.
April 10, 2016 Newsbreak 5:33 Pm EDT "Bank Monte dei Paschi di Siena, Italy's third-largest bank, has €170bn in assets and about €50bn in bad loans is too big to fail, a veritable elephant in the room, trading at zero compared with tangible equity. When Lehman Brothers collapsed in 2008 it was trading at about 20 per cent of its tangible equity.-- As a last resort to ring fence a massive €360bn pile of non-performing loans of Italian banks, Finance minister Pier Carlo Padoan has called for a meeting of minds in Rome on Monday. Padoan seeks a plan reminiscent of the Sareb bad bank structure in Spain, even though that plan blew up several times." U.S. Reporter
This announcement came on Sunday just five hours after Austria announced the first Bail-in of a major bank due to wipe out depositors leaving them broke. Today, Italy is the next "too big to fail" momentous problem. If Italy is forced to "bail in" their bank a chain reaction of disastrous proportions will envelope the European banking system and this may very well be the pivotal moment we have expected.
Most depositors have felt safe since insurance coverage increased from $100K to $250K however your contentment should not be insured as the FDIC's their basis procedures to compute your insurance coverage is anything but standard. Different product accounts at banks DO NOT have separate Standard Maximum Deposit Insurance Amounts (SMDIA). Adding a name does not increase your insurance coverage, nor does rearranging names on different accounts. Adding different Social Security numbers or substituting conjunctions like "and or "for" also does not increase coverage. Today most bank records are virtual records and signature cards may or may not be physically present or could easily be lost or altered.
The most important facts are, that different Single Ownership Accounts over $250,000 are not insured and Joint Ownership accounts are limited, Corporations are considered but one owner and Co-owner Accounts with but one surviving owner will revert to a single owner after 6 months after the death of the other co-owner and therefore insured up to $250,000. If you are a bank customer NEVER assume coverage and the best option is to never have more than $250,000 in any single bank entity because all have the same FDIC charter number and remember that Safety Deposit boxes ARE NEVER covered! If your bank has been absorbed by another bank in a receivership activity complete w a bank name change their FDIC charter numbers are combined. FDIC insurance coverage, although $150,000 higher today than 2010, has significant new impacting rules that WILL potentially impact your actual assets in the event of a banking failure.
Here is the banks statement of their guidelines which are somewhat confusing.
1. Deposit Insurance coverage is provided per depositor, per ownership category per Insured Depository Institution (IDI).
2. At the same IDI, a depositor can/may be insured for more than the SMDIA.
3. Separate coverage is provided to depositors for separate account ownership categories.
4. All accounts owned by the same depositor in the same ownership category at the same IDI are added together and insured up to the insurance limit.
5. Deposit insurance coverage is up to the SMDIA and includes principal plus accrued interest up through the date of the IDI's failure.
6. Deposits owned by one or more individuals that identify Payable on Death Account (POD) beneficiaries are insured as revocable trust accounts on a per beneficiary basis.
7. A POD account with one owner and one eligible beneficiary is insured up to $250,000 NOT $500,000. (Owner x Beneficiary x $250,000= $250,000 FDIC Insurance)
8. Adding beneficiaries on an IRA does not increase the coverage because certain Retirement Accounts, such as IRA's are insured up to a maximum of $250,000.
9. To check your insurance coverage log on to FDIC's Electronic Deposit Insurance Estimator calculator (EDIE) https://www.fdic.gov/EDIE/ or call 1-877 275-3342 with questions concerning your insured deposit accounts.
The push to "ban cash" is growing as our government has already eliminated the $1000 and $500 bills and is now going after the $100 bill. Former U.S. Treasury Secretary Larry Summers is pushing to get rid of the $100 siding with legislators citing that cash is only used by terrorists, tax evaders and criminals. Economists and the banksters have joined the call to make cash illegal stating that crime will not be eliminated until $100, $50 or $20 bills are eliminated! Today we are learning that the true criminals are the elite who are stashed massive quantities of tax free money in off shore accounts and have been protected for decades. Even "Dodgy Dave Cameron", the Prime Minister of England, has profited by avoiding taxes and the populace is outraged, protesting and asking him to step down just as the Prime Minister of Iceland was pressured to do last week.
This push is NOT to protect us but to control us! Today the $100 bill is comparable to $20 bill of 40 years ago. When you leave your house today you can expect to spend $100, $50 to fill up your gas tank and the other $50 to buy 2 bags of groceries. Eliminating cash is not to prevent crime but to insure government that you are paying taxes and determining exactly how much and where you spend little paychecks.
Our bankrupt government is so desperate for economic growth that they now count illegal drug activity and prostitution in their Gross Domestic Product calculations, both of which are typically transacted using cash? Banning cash will inevitably end up reducing the governments GDP figures.
What's really behind this? Why is there such a big movement to ban something that is used for felonious purposes by just a tiny fraction of a percent of the population? Cash is the Achilles' heel of the financial system. Central banks have kept interest rates at zero levels for a decade creating massive bubbles and enabling extraordinary amounts of debt. Their policies aren't working but they will never admit it and they continue more of the same thing.
Interest rates around the world are negative except in the U.S. Janet Yellen stated that she and her cronies on the Federal Open Market Committee (F.O.M.C.) will "continue to make accommodations". Those in power have succeeded over the past 100 years to re-create our once great nation, by design, into a failing; flailing global economy. Today we are systemically interconnected to the world yet the U.S. raises interest rates? Even in failure we will have to "make accommodations" as all countries are doing, digitizing currency through quantitative easing, offering zero interest and ultimately negative interest rates to prop up THEIR mess of failures repeated over and over in their globalization scheme grand plan. We can only hope that they ultimately fail, but of course we will suffer but just possibly we may throw off the shackles of the enslaved Central Banking system and our government, the U.S. CORPORATION.
They have no other choice because raising rates will bankrupt ALL the governments and derail any morsel of purported economic growth. They simply cannot afford to raise rates. As global economic weakness continues to weaken, central banks will have but one option, to take interest rates negative. Negative interest rates will be the destruction of the financial system, because sooner or later. If banks have to pay negative wholesale interest rates to each other and to the central bank eventually they'll have to pass those negative rates on to us. Banks have already started doing this on large depositors. We've seen this in Europe where some banks charge their customers negative interest to save money and pay other customers to borrow money. At some point, when interest rates have gone so far negative there will be no rational person that would hold their money in the banking system. Eventually people will realize that they're better off withdrawing their money and holding physical cash.
Today we are use to receiving zero interest on our money but charging us will be a game changer if our government makes $100 and $50 bills illegal to hold or possibly all cash. Imagine paying your bank $1000 a year to hold your $100,000 in savings. It makes more sense to buy a safe stocked with A LOT of $20 bills but the banks don't have enough cash money on hand. Then if you want to spend it you will discover that it is impossible to walk into a dealership and buy a car for cash or place a down payment on property. Next try to put your money back into your bank to purchase a car, land or precious metals and you will be targeted as a money launderer and your transaction will be placed on a Customer Transaction Report (CTR) and the possibly the dreaded Suspicious Activity Report (SAR) without your knowledge. Then the Financial Crimes Enforcement Network (FinCen) will show up at your door, collect everything in your home of value and you will be forced to spend thousands to prove your rights to your own property.
There is not enough cash in the entire financial system to pay out more than a tiny fraction of all bank deposits. They have not been printing more money but simple digitizing it on a computer screen by adding zeros. Did you really think the printing presses were running day and night spewing out Ben Franklin's and Andrew Jackson's?
Banks are extremely ill-liquid today as your funds are invested in substandard loans and securities of questionable long-term value or whatever the latest stupid investment fad happens to be. Most banks today are simply shifting their balance sheets by rotating their bond purchases from what's called "Available for Sale" to "Hold to Maturity". This accounting trick is used to hide losses in their bond portfolios and means they have less liquidity available to support bank customer withdrawal requests.
The natural side effect of negative interest rates is pushing people to hold money outside of the banking system. Yet it's clear that a surge of withdrawal requests would bring down that system and governments and their banks don't want that to happen. But since central banks have no other choice than to continue imposing negative interest rates, the only logical option is to ban cash and force consumers to hold their money within the banking system. Don't be too surprises when this "epitome of capital control" comes to your home town soon.
Banks today simply do not have sufficient liquidity or capital to maintain customer account balances. Seeing your balances on the banks website or a printed account balance does not mean your money is actually in the banks. All governments today from Europe to, Japan to the U.S. are in-solvent and are unable to support all the banks especially the small banks. The FDIC depositors guarantee is not worth the paper it is printed on and every government publishes its own financial statements attesting to their insolvency.
Today the western banking system is extremely ill-liquid and most banks are thinly capitalized with minimal reserves. Freezing the banking system is their only option and this is what happens when a poorly structured banking system meets an insolvent government as we have all over the world today.
Simply put, the deposit insurance funds are under capitalized and have only $11 B. on hand and totally lack the financial capacity to guarantee the system will not fail. Just look at the FDIC's quarterly balance sheet as compared to the $11 Tr. in deposits estimated to be in the western banking system today. Today we have a completely new population that has never experienced a banking failure.
I believe that one day soon all living individuals will awaken to the truth and the fact is that their paper (if they can even get it out of the banks) is completely valueless and worthless but as a debt instrument that their government has used against them to steal their interest earnings, real savings they have held in bank accounts as dollars, paper stock, mutual funds & C.D.paper and ETF accounts.
Consider the truth, if your government is broke, the FDIC insurance fund is under capitalized and your bank is ill-liquid, isn't it obvious that you shouldn't hold your savings in a bank. There are solutions to reduce your risk. The logical option is to hold physical cash and buy a safe and start making withdrawals from your bank account. However if you become awakened you must accept the fact that your paper is but worthless paper and why would a thinking person have the "full faith and trust in the United States of America". Even if you're completely skeptical about everything you've just read, you won't be worse off having cash instead of bank deposits and even better off holding real assets of gold, silver, platinum or palladium that will most assuredly skyrocket in value when governments become unhinged.