US Banks Prepared For Bail-ins

The US banks, with over $100 trillion in derivatives and without the funds to meet demands for cash from their depositors, will ask to be bailed out if they fail. While Dodd-Frank prohibits taxpayer bank bailouts, a clause in Dodd- Frank, largely unreported by the media, allows US banks facing default to turn to their own depositors for what is called a "bail-in."

This involves confiscating all or part of the depositors' life savings to pay off debts (such as derivative obligations) Forget FDIC saving you--FDIC actually has co-written papers with the Bank of England justifying the bail-in practice.

Plus, FDIC has less than $50 billion to back trillions in bank reserves. And the FDIC can reimburse your lost savings any time in the future it chooses, whenever "possible," according to FDIC regulations, even a century from now.

Get your hands on as much cash as possible, at least for the next few months. Better than losing all your life savings.

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This comment was left by Harry Stallardin at USA Today. Read more of Harry Stallardin's comments at https://www.facebook.com/profile.php?id=100006536370822 

Read the article: http://www.usatoday.com/story/news/2015/06/30/greek-crisis-deepens-as-loan-repayment-deadline-nears/29518847/ 

 




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