Skip to comments.US banks shaken by biggest fund withdrawals since 9/11
Posted on 03/29/2013 5:00:22 AM PDT by MeneMeneTekelUpharsin
US Federal Reserve is reporting a major deposit withdrawal from the nations 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 The first week of January 2013 has seen $114 billion withdrawn from 25 of the US biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed. Financial analysts suggest it could be down to the Transaction Account Guarantee insurance program coming to an end on December 31 last year and clients moving their money that is no longer insured by the government.
The program was introduced in the wake of the 2008 crisis in order to support the banking system. It provided insurance for around $1.5 trillion in non-interest-bearing accounts with a limit of $250,000. It was aimed at medium and small banks as the creators of the program believed bigger banks would cope with the crisis themselves. So the current fast pace of withdrawal comes as a surprise to financial analysts because the deposits are slipping away from those banks which supposedly were safe. Experts expected savers in small and medium banks would turn to bigger players come December 31.
There are a number of reasons behind this unpredicted fund outflow. Some experts believe it has to do with the beginning of the year when the money is randomly needed here and there. Others have concluded the funds are getting down to business and being invested. Another set of data from the US Federal Reserve shows some deposits may have moved within the banking system from one type of account to another.
RT: At this point - how do you convince panicked savers across Europe that the EU won't dig into their accounts, next?
CM: You do not. If you are in Europe and youre hearing this broadcast, you know what, if you can go to your bank and take your money out and you dont, then you better be ready for whats coming. Theyve made the announcement. They are going to go after savers in order to save these banks. There is no other way to describe it. Jeroen Dijsselbloem, the president of the European Stability Mechanism board of governors, even though he retracted the statement, he said two days ago that this should be the model going forward. There should be no doubt on anybodys mind in Europe or Russia that theyre going to come after this money.
And this registers as a withdrawal? I think they are looking for excuses.
The money is buying safe US Treasury bonds. /s
Well, it IS RT.com.
Whatever that is.
Now serving lokum.
I would bet that after Cyprus we have another big withdrawal.
RT = Russian Television = Not our friends = propaganda designed to hurt the West.
Yes, I know. A lot of what appears on RT is probably true, but all of it is presented to undermine our country and its allies.
Hmmmm....I wonder why????
Look into a sweep account such as Fidelity’s. It’s probably not the best solution since any bank and the FDIC could fail but Fidelity will put your money in around 5-10 banks assuring all of your balances are insured and it looks like one account to you.
The unemployed draining their savings to survive?
Sounds like the US Democrat Party to me.
Whenever you withdraw money, make sure to tell the teller it is because you are afraid of what obama is going to do.
I have divided my my deposits among several credit unions and banks already.
The difference being that almost nothing the demoncrats say is true and almost everything they do is bad for our Republic.
"[The program] was aimed at medium and small banks as the creators of the program believed bigger banks would cope with the crisis themselves"
"The first week of January 2013 has seen $114 billion withdrawn from 25 of the US biggest banks"
Sumpin stinks in bankster town
Sumpin always stinks in bankster town.
Dimrat politicians pulling their money out because they know what is coming?
Bet that is the case.
>>Why was this story not widely circulated
>>when published in January?
Because the insurance companies who are now reaping windfall profits from the mandates of Obamacare don’t pay for ~that kind of advertising?
“COMMERCE BETWEEN MASTER AND SLAVE IS DESPOTISM”
Are we there yet?