Not to cause panic but lets talk banks.......

Frank from Cleveland

Frank from Cleveland

New Member
Location
Lorain Oh
Rumor is more banks will go belly up
I had read that in order to prevent a collapse a bank can use the Dodd-Frank act and seize their depositors' assets in order to stay afloat in tough times
I read that off the internet but still, with all the shaky bank news I'm wondering if its true
I have my social security in a bank by direct deposit--- should i transfer to a credit union as a safe precaution?
Anyone here work in the banking industry?
Should we worry? Or is everything going to be hunky dory? Thanks in advance
 

It all goes back to the FDIC. It's federal and guarantees all deposits, but the U.S. government has such a large deficit, we're all just using funny money. As long as this sham holds for the remainder of my lifetime, I don't care.
 

I bank with a major national bank. I have to say though, my savings doesn't give me a feeling of security. I don't worry about it though, not really. But I'd rather have it gone spent it on a home the cats and I can live in. Since that's a mobile for me, I'd have the money gone and pay the space rent and expenses. I'd only hope to have left overs for a car when needed.
 
Always seem to be rumors and predictions like this. Bank failures and widespread collapses happen, but most predictions and rumors of such don't come true. You can always find someone who rightfully predicted disasters of all kinds just because so many people are always making these predictions, we only remember those who were right.

About all we can do is not panic, be careful where we put our money, and support bank and financial system regulation. Won't prevent another collapse, but it should stave it off for a while and hopefully make the consequences less sever...
 
Frank from Cleveland said:
Rumor is more banks will go belly up
I had read that in order to prevent a collapse a bank can use the Dodd-Frank act and seize their depositors' assets in order to stay afloat in tough times
I read that off the internet but still, with all the shaky bank news I'm wondering if its true
I have my social security in a bank by direct deposit--- should i transfer to a credit union as a safe precaution?
Anyone here work in the banking industry?
Should we worry? Or is everything going to be hunky dory? Thanks in advance
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Did you read that on Newsmax?
 
There was a bit of hysteria over a "leaked" FDIC video, which was not leaked, but live streamed and publicly available at the FDIC site. The meeting was of the FDIC Systemic Resolution Advisory Committee. Warning: it is very lengthy.

The issue was the term "bail In", that has been used to scare people. That term applies to people over the $250K FDIC limit and other investor groups. IF you have your money within the Insured amount, you are okay.
 
Frank from Cleveland said:
I have my social security in a bank by direct deposit--- should i transfer to a credit union as a safe precaution?
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I'm not sure a credit union bank would be any safer, and anyway if your regular bank failed you could probably easily change the destination bank in your social security account at that time.

I have enough trouble keeping my bank account minimum so I am as far from having to worry about exceeding the FDIC insured amount limit as a person can be. I don't think there is anything to worry about as long as you don't have more than 250,000 in any one bank. Isn't the FDIC's reason to exist to let everyone relax about bank failures (i.e., a 'lesson learned' from 1929)?

hawkdon said:
Well, they are back on....they used to only go off-line at night or
on weekends....ah well/////
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A few months ago, my bank put the wrong web certificate on their online banking page and I called them when I received the bad certificate warning on my browser. When I tried again later in the day they were down for maintenance, and when I tried that evening they were up and had the right certificate.

So maybe your bank had messed something up that was impacting enough people that it was worth it to them to bring down the site, even though it was still during the business day, to fix it.
 
A bank cannot legally sieze your deposits. I assume your bank account is FDIC insured since well over 90% of banks are. If not, then move it to a bank that offers FDIC insurance, ASAP. If you have more than $250,000 in one bank then move it t another bank. Not another branch of the same bank, another different bank. The rest of what you heard is incorrect, IMO.
 
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seadoug said:
If I ever have more than $10k in any bank just to maintain Premium checking status just bonk me on the head and put me out of my misery!
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i absolutely keep a lot off money handy in a bank .

first of all we live off it .

second of all your brokerage account can be locked if there is a fraud attempt and it may take a week or longer to get new accounts , checks and cards. reassigned .

it happened to us …

plus when the day comes i have to worry about returns on a declining balance in cash is the day i need to review my investment plan because in the scheme of things it shouldn’t be a blip on the radar over the longer term.

however we don’t keep more than 60-70k in a bank .

all our cash instruments and fixed income investments are kept in treasuries ….

while a massive run on the banks can result in delays getting your money if fdic is drained , treasuries backed by the full faith and credit of the treasury.

it would take an act of our snail moving congress to get funding to refill fdic.

back in 2008 i had a money market break the buck and all access was cut off to those funds for a month or two if i remember
 
Lots of "fear mongering" going on in the media. That's how they make their money. I have my "cash" with a credit union that has assists in the billions. As for them banks, I don't like them period. Seems they like to close up if the volume goes down. Credit unions give back to the community.

By the way, banks have made monster profits over the years. I don't feel sorry for them. If I am going to feel sorry for any banks, I might as well feel sorry for Elon Musk or Donald Trumps or some of them Russian Mafia billionaires with their monster ships. It "ain't gonna" happen in my neck of the woods!
 
the assets in the billions that a bank may have does it no good in a bank run if they are not liquid ..

if depositors get nervous and everyone demands their money which is what happened to silicon valley bank then the bank doesn’t have the money to give them and game is over

banks are required to keep a certain percentage in reserve. but that is not nearly enough when depositors cause a run… that is what is scarey .

it isn’t that a bank is weak or in trouble as much as if depositors get scared they can cause a bank run..

banks are required to keep liquid only a very small portion of the deposits they have on hand .

so banks may not have access or like we saw happen have to sell assets at steep losses to give depositors back their money .

don’t confuse the billions a bank has with a bank run causing a failure.

the banking system isn’t designed to deal with depositors panicking and wanting their money back at the same time
 
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mathjak107 said:
i absolutely keep a lot off money handy in a bank .

first of all we live off it .

second of all your brokerage account can be locked if there is a fraud attempt and it may take a week or longer to get new accounts , checks and cards. reassigned .

it happened to us …

plus when the day comes i have to worry about returns on a declining balance in cash is the day i need to review my investment plan because in the scheme of things it shouldn’t be a blip on the radar over the longer term.

however we don’t keep more than 60-70k in a bank .

all our cash instruments and fixed income investments are kept in treasuries ….

while a massive run on the banks can result in delays getting your money if fdic is drained , treasuries backed by the full faith and credit of the treasury.

it would take an act of our snail moving congress to get funding to refill fdic.

back in 2008 i had a money market break the buck and all access was cut off to those funds for a month or two if i remember
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It is just as easy for me to take money out of cash being set aside in my brokerage account. I just transfer it to my bank account within a day. If my bank ever had issues I could make payments directly out of my brokerage account. Also, my financial advisor keeps track of how much cash I am using, and if he sees that there is more than I need he invests it. He recently moved $30k into investments because he saw that I wouldn't need it for a while. No bank would do that.
 
seadoug said:
It is just as easy for me to take money out of cash being set aside in my brokerage account. I just transfer it to my bank account within a day. If my bank ever had issues I could make payments directly out of my brokerage account. Also, my financial advisor keeps track of how much cash I am using, and if he sees that there is more than I need he invests it. He recently moved $30k into investments because he saw that I wouldn't need it for a while. No bank would do that.
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your advisor saw you wouldn’t need it for a while ? is he a mind reader and knows something all of a sudden he didn’t know the day before ?

unless you told him , he would not know how long you had for the use of that money as far as what you are telling us unless the fact you had no short term use for the money came to them in a dream
 
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mathjak107 said:
something else to worry about .

there are quite a few rants over on other forums about bank accounts suddenly being closed with no explanations given .

here is an article on yahoo about it

https://news.yahoo.com/banks-closing-customer-accounts-little-141130517.html
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Wow! That's....disturbing, to say the least!

Apparently it's happened enough that Motley Fool has an article for consumers about what to do if this happens:

Here's What to Do When Your Bank Closes Your Account
Fool.com by Dana George | Published on Feb. 17, 2023
Accounts Closed? What to do.
 
mathjak107 said:
your advisor saw you wouldn’t need it for a while ? is he a mind reader and knows something all of a sudden he didn’t know the day before ?

unless you told him , he would not know how long you had for the use of that money as far as what you are telling us unless the fact you had no short term use for the money came to them in a dream
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No need to be snarky. He monitors my monthly cash withdrawals. I've called him when I've needed to make major withdrawals. No, he is not a mind reader.
 


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