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.
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
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