Well now, this is an interesting development.

[HemiHauler]

Believe its all in their prospectus that gets mailed to shareholders once a year, nobody reads them.

I've never received a prospectus as a depositor, only a shareholder.

But little need to worry, at least for individuals, since you're insured up to $250,000. If an individual has more than that on deposit with a bank: WHY? But if you do, just shuffle money around so that there's not more than $250,000 on deposit at any bank.

Very common for businesses who have to make payroll, fund accounts payable, etc. to have large balances. Not very practical to have the $250,000 limit across several banks as it's inefficient.

Even though FDIC insures up to that amount, depositors almost always get their money back. The FDIC's very first goal is to find a buyer. They are one of the most remarkably efficient agencies of government. Failing banks will get shuttered on a Friday (always a Friday) and it will be open again on Monday morning under a new name, as if nothing ever happened. Just as will happen with SVB.

What *should* happen is that the results of stress test that are required under Dodd-Frank should be public. I mean, it's a public law... But the fear is that the results which may not be great could in and of themselves cause a panic.

 

[LightRoasted]

For your consideration ...

well, no. if the dollar bills are worth nothing, you are storing nothing more than old newspaper that the mice will eat.

Very true, dollar bills are worthless pieces of paper .... Bank accounts are one and zeros in a computer ledger. Those ones and zeros are convertible to paper currency. That paper currency is convertible to whatever one want or needs. Buy things that are needed and store them to hedge against inflation, to sell in the future. Also known as arbitrage.

As an aside. If banks would just pay higher interest rates on savings accounts, then people, and businesses, wouldn't be pulling their money out and investing in Treasurys. Currently Series I Savings Bonds are paying 6.89%. 6 Month Treasury Bill Rate is at 5.07%. Your local banks are still pretty much struck at 0.5%. But banks are greedy and the owners well looked after, so, no higher rates for you. Bring on the crash..

 

[PJay]

 

[PJay]

 

[phreddyp]

This dude is everything I expected LightRoasted to be!

 

[PJay]

Who's ready for a Manic Monday...

 

[HemiHauler]

If everyone does that it will ensure that the banks collapse.

That's the thing about these hysterical news stories - the implosion of SVB doesn't have anything to do with 99.999% of Americans.....unless they force it to. SVB was a big tech lender and [/b]they were more concerned about social issues[/b]

Didn't take long for your handlers to install the culture war angle in your head.

Do you ever have an original thought?

 

[PJay]

 

[LightRoasted]

For your consideration ...

This dude is everything I expected LightRoasted to be!

Hey! I resemble that remark!

BTW. What is happening is what happens when a Nation's monetary system is based on fraud. Fiat currency, the fraud, controlled and issued by private bankers, is not money, because it has zero intrinsic value, because it is created out of thin air. Eventually the whole thing comes crashing down. As it has happened throughout history every time it has been instituted.

Those dollars in your wallet are not dollars, they are notes that represent debt which are owned by the Federal Reserve Bank, hence, the Federal Reserve Note.

Again, a primer on money ......

Currency--- fiat, not money but acts like money.

Specie---- Gold, silver, copper, nickle, coins = real money that has value, and utility, because it requires human labor, ((((the value)))), to create, and cannot be made from nothing.

Everyday people are trading their labor for fake money that has no value. Everyone is being stole from everyday due to the manipulation, inflation of currency. EVERYDAY!

In the intern, let the system crash. Empty your bank accounts. Fastest way to drain your account without having to stand in line ...

Jump on TreasuryDirect.gov. ... open an account linked to your bank ... purchase a 4-week T-Bill. Keep rolling that T-Bill over every 30 days. For people living paycheck to paycheck, put your bank balance on your credit card. I know a lot of cards won't let you do this - so find one that does. Or go buy a gift card at the grocery store. There are many other ways to store limited funds other than a bank.

 

[PJay]

 

[HemiHauler]

Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository i

www.federalreserve.gov

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.

The Federal Reserve is prepared to address any liquidity pressures that may arise.

The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress.

With approval of the Treasury Secretary, the Department of the Treasury will make available up to $25 billion from the Exchange Stabilization Fund as a backstop for the BTFP. The Federal Reserve does not anticipate that it will be necessary to draw on these backstop funds.

 

[Gilligan]

Your local banks are still pretty much struck at 0.5%. But banks are greedy and the owners well looked after, so, no higher rates for you. Bring on the crash..

I was quite pleasantly surprised the other day, when our account manager showed me a new money market account they offer that's currently paying around 2.5%. I'd given up on the idea of counting bank account interest as anything but rounding error...

 

[phreddyp]

I was quite pleasantly surprised the other day, when our account manager showed me a new money market account they offer that's currently paying around 2.5%. I'd given up on the idea of counting bank account interest as anything but rounding error...

You need a new account manager, Treasury bills are paying at least 1% higher interest.

 

[Kyle]

Navy Fed even has CDs running high 4% now.

 

[phreddyp]

Navy Fed even has CDs running high 4% now.

Certificates of deprecation, no thanks!

 

[HemiHauler]

Certificates of deprecation, no thanks!

LOL, he probably joins the "Christmas Club" at the local bank too!

 

[Gilligan]

You need a new account manager, Treasury bills are paying at least 1% higher interest.

No I don't. I need an account that is as liquid as a checking account. Otherwise...in checking accounts the money will stay.

 

[phreddyp]

No I don't. I need an account that is as liquid as a checking account. Otherwise...in checking accounts the money will stay.

So you have no float?

 

[Gilligan]

So you have no float?

Just in the boats we help build.

 

[phreddyp]

Just in the boats we help build.

That's tough, we always had some .