US Banks Shaken by Biggest Withdrawals Since 9/11

Joe Raedle / Getty Images / AFP

The US Federal Reserve is reporting a major deposit withdrawal from the nation’s bank accounts. The financial system has not seen such a massive fund outflow since 9/11 attacks.
­The first week of January 2013 has seen $114 billion withdrawn from 25 of the US’ biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed. [Read more...]

How Likely Are Bail-Ins? Bank of England Says U.S. “Could Do Today”

BOE Says U.S. “Could Do Today” And U.S Authorities Doing Simulation Exercises.
The U.S. already has in place plans for bail-ins in the event of banks failing. Indeed, the U.S. has conducted simulation exercises with the U.K. in recent weeks and will do so again in 2014.
On October 12, Art Murton, the FDIC official in charge of planning for resolutions, and the Bank of England’s Deputy Governor Paul Tucker, both confirmed that the U.S. system is ready to handle a big-bank collapse.
The Bank of England’s
Tucker, who has worked with U.S. regulators on the cross-border hurdles to taking down an international firm said that “U.S. authorities could do it today — and I mean today.” [Read more...]

Jim Sinclair: FDIC Not Sufficiently Capitalized For Coming Bail-ins!

FDICLegendary gold trader Jim Sinclair has sent an email alert to subscribers warning that the FDIC is not sufficiently capitalized to sustain FDIC insured deposits for the coming bail-in, and boldly predicts that the FDIC will not pay in cash, but will rather pay in special issue US Treasury instruments that will be salable only over a 5 year period!
Sinclair goes on to state that the systemic risk is MUCH HIGHER in 2013/14 than it was at the peak of the financial crisis in early 2009, and that gold will now trade at NEW HIGHS.
Sinclair’s full alert is below: [Read more...]

FDIC Deposit Insurance Scam: The Infographic

In the wake of bail-ins as the new bank resolution method of choice throughout the entire Western world, our friends at Demonocracy have released a MUST SEE infographic on the FDIC illusion of insured bank deposits.  

The infographic gives a visual view on the size of FDIC’s fund vs. the total deposits that the FDIC covers.
What happens to the rest of deposits in the event of a banking crisis?  Well, that’s what bail-ins are for!

Full infographic is below: [Read more...]

FDIC & Bank of England Create Resolution Authority for Unlimited Cyprus-Style “Bail-Ins” for TBTF Banks!

bank failure*BREAKING SD ALERT*
Editor note: Bringing this massive story back to the top of the news feed for those who missed it over the holiday weekend.

On Wednesday, SD broke the news that Canada had buried a provision for depositor bail-ins for systemically important banks deep inside its official 2013 budget, and stated that the Cypriot bail-in was not just a one-off event, but is in fact the new collapse template for the entire Western banking system.

We suspected that the same policy change had been made by the US & the UK, but was simply yet to be discovered, buried in the website of a Federal agency.

We suspected correctly… [Read more...]

What Does FDIC Insurance Really Mean? Cyprus Depositors Believed Accounts Were Insured Up to €100,000!

FDICWhat is more likely to hurt you is what you think you KNOW that is WRONG. What you don’t know is often not that important. Consider a few examples:

Cyprus Bank Accounts.  MF Global.  Social Security.  Retirement Accounts.  Europe in 1913.  Real Estate.  The dollar is as good as gold.

There are many other examples, but the essential truth is simple: For the most part, we are ignorant of many ideas and events in the world, and it rarely matters. But, what is often costly and destructive are the ideas and beliefs that we think are true – when in fact they are quite wrong.

Our savings and retirements are at risk when we invest them based on beliefs that may be incorrect. This is one of many reasons why people buy gold and silver – for insurance against unexpected events. What if our perception of financial reality is incorrect or if we are ignoring financial reality? Ayn Rand said it best, “You can ignore reality, but you cannot ignore the consequences of ignoring reality.” [Read more...]

Bank Run in Progress? Massive $114B Withdrawn From 25 Largest US Banks First Week of January!

gold bank runSD contributor AGXIIK warned readers months ago about the FDIC’s expanded deposit insurance which was set to expire Dec 31st, predicting that the expiring expanded deposit insurance enacted in the wake of the 2008 financial panic could trigger a bank run. 
Many scoffed at the report and its implications, due to the fact that the story received zero attention by the likes of Bloomberg, CNBC, or even ZH.

It appears that the expiring expanded FDIC insurance has in fact triggered a massive deposit withdrawal at the nation’s largest banks, as the Fed is reporting that $114 billion were withdrawn from the largest 25 US banks over the first week of January, the largest fund outflow since the 9/11 attacks, even exceeding the pace of the outflow during the 2008 financial panic!

[Read more...]

US Bank Run Imminent as FDIC Expanded Deposit Insurance Ends Dec 31st

With the media fixated on the fiscal cliff, no one seems to be noticing the fact that the FDIC’s expanded 100% coverage for insured deposits ends January 1st, 2013.

Submitted by SD Contributor AGXIIK:

As of January 2013 the FDIC stops offering 100% coverage for all insured deposits.  That amounts to $1.6 trillion in deposits, 85-90% deposited with the TBTF mega banks.  Once the insurance ramps back to $250,000 the FDIC risk amelioration offered to large depositors will cause them to flee from the insecurity of the much reduced FDIC coverage.  This money will rotate immediately into short term Treasury securities.  The treasury, in order to handle this flood of money, will immediately offer negative interest rates.  This financing will resemble the .5% negative interest rate offered by the Swiss and Germans on the funds flooding to their banks from Spain, Greece and Italy.
This will be a bank run much larger than the Euro banks flight to safety
.
[Read more...]