Tag Archives: Federal Deposit Insurance Corporation

Dean Henderson ~ Turning Tables On Banksters

Posted on by
4

Intellihub.com April 14 2013

Every high school in this country should teach a required course on how to save money and, more importantly, regarding the power of compound interest. And every parent should teach their children these same two things.

(Excerpted from Chapter 9: The Power of Compound Interest: Stickin’ it to the Matrix)

The trouble is that most parents nowadays are themselves unaware of the power of compound interest. This entire generation of parents and especially grandparents has largely bought into the matrix-controlled “get-rich” stock market scam at one level or another.

Many have taken a very cold bath. Some have taken several. And still, many cling to some fantasy that they too will be a millionaire someday if they just keep their head low and play by the matrix rules. It defies logic, not to mention indicates a moral bankruptcy unprecedented in humanity’s span of time on this planet.

The seminal event in the downgrading of the concept of savings in the US came with the Reagan Administration’s introduction of the 401K plan. This essentially privatized the retirement pension programs that most companies used to offer their employees for free.

The new 401K system was marketed as the best new thing since sliced bread. It sounded great since your employer would match your contributions to this stock exchange-based roulette scheme dollar for dollar.

What in fact had actually happened was that you were now matching your employer’s contribution to your retirement plan dollar for dollar, essentially taking that corporation off the hook for the other 50% of your retirement that it used to pay.

Thank you very much sir, may I have another?

Worse yet, that previously stable and secure pension fund that nearly every American used to be able to count on in their old age was tossed onto the roulette wheel of derivatives, hedge funds and dark pools. Free from these billions in pension liabilities, for a while the Dow Jones went straight up.

Some who retired a few years ago were able to ride the up escalator and retire millionaires. But that once-in-a-generation aberration has since turned into another bloodbath for the masses, most of whom saw their retirement savings flushed away when the various bankster-conjured bubbles, with names like Internet, NASDAQ and Housing, burst and came crashing to earth.

A handful of Illuminati banks own 90% of every company listed on a stock exchange. They buy low and sell high – to YOU. You are extremely naïve if you believe otherwise.

I was lucky to be burned early by these lunatics, and my losses were minimal. Ever since, I have taken a much safer and simpler approach to the retirement we are already enjoying.

Continue reading →

Lawrence E. Rafferty ~ Could the Banksters Grab Your Bank Deposits?

Posted on by
Reply

Jonathan Turley March 31 2013

The recent news about Cyprus banks confiscating depositor’s funds sent chills throughout the financial world here and abroad.  I couldn’t believe that the plan in Cyprus hinged on the idea that the bank could just steal customer’s funds to balance the bank’s books.  I muttered to myself when I read the story that something as crazy as that couldn’t possible happen here in the United States.  Unfortunately, I learned that the plan to pull a Cyprus type grab here was already in the works.

“A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds. ” NationofChange 

The above article explains that most of us do not realize that when you deposit money in a bank, that it becomes the property of the bank and we become unsecured creditors of the bank! “Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price?” NationofChange

If I deposit $1,000 dollars in my local bank, I trust that the funds are safe and protected by FDIC insurance and that even if the bank fails, I will get my money back.  Under the plan listed above, we may not even be able to fall back on the FDIC insurance coverage.  The FDIC-Bank of England plan would supersede our FDIC coverage and we would be relegated to become a “shareholder” in the failing bank or its successor entity.  Let me see if I understand this scheme.  The bank who is failing due to mismanagement or due to risky investments could steal my funds and force me to accept stock in a company led by poor businessmen with an even poorer business record!  If you are brave enough, check out the full FDIC-Bank of England plan here.

Continue reading →

Ellen Brown ~ It Can Happen Here: The Bank Confiscation Scheme For US And UK Depositors

Posted on by
7

Global Research March 30, 2013

Confiscation of the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets.

Ellen Brown

A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.

New Zealand has a similar directive, discussed in my last article here, indicating that this isn’t just an emergency measure for troubled Eurozone countries. New Zealand’s Voxy reported on March 19th:

The National Government [is] pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts . . . .

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

Can They Do That?

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

Continue reading →

Senate Bill Gives The Federal Reserve Warrantless Access To Your Emails And Facebook Posts

Posted on by
1

Activist Post | November 11 2012

CNET is reporting that “A Senate proposal touted as protecting Americans’ e-mail privacy has been quietly rewritten, giving government agencies more surveillance power than they possess under current law.”

Patrick Leahy, the influential Democratic chairman of the Senate Judiciary Committee, has dramatically reshaped his legislation in response to law enforcement concerns, according to three individuals who have been negotiating with Leahy’s staff over the changes.

A vote on his bill, which now authorizes warrantless access to Americans’ e-mail, is scheduled for next week.

Leahy’s rewritten bill would allow more than 22 agencies — including the Securities and Exchange Commission and the Federal Communications Commission – to access Americans’ e-mail, Google Docs files, Facebook wall posts, and Twitter direct messages without a search warrant.

It also would give the FBI and Homeland Security more authority, in some circumstances, to gain full access to Internet accounts without notifying either the owner or a judge.

Continue reading →

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

Posted on by
3

Silver Doctors | September 26 2012 | Thanks, Minty

AGXIIK writes ~ 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.

I have noticed two disturbing matters that will most certainly come as a result of the Fed MBS program.

1.  The funds from the Fed purchases will rotate to the Too Big To Fail Banks. This debt is already junk bond status due to the nature of the underwater mortgages and delinquencies, hence the reason for the new Fed goon Squad going after borrowers. This debt will be as bad or worse than the debt of Greece, Spain and Italy, rated CCC-

Continue reading →

Susanne Posel ~ Morgan Stanley Is Insolvent – Only A Matter Of Time Before Total Financial Collapse

Posted on by
3

Occupy Corporatism | August 30 2012 | Thanks, A.L.

The fall of the House of Morgan has begun as stock prices on the global market at Morgan Stanley (MS) begin to fall on the New York Stock Exchange (NYSE).

According to Rick Wiles : “I’m hearing rumors that another major financial house is going to implode. In fact, the name I’ve been given is Morgan Stanley . . . It’s going to be put on the sacrificial alter by the financial elite.”

MS, technically speaking, is classified as insolvent based on mark-to-market valuation. By selling off non-core assets, MS has been able to “reduce its European exposure” through the manipulation of hedge funds and allocation of funds to failing financial corporations. Some mainstream media outlets tout that the Federal Reserve Bank will come in and assist MS in their insolvency and that MS “just isn’t going out of business anytime soon.”

However, on the bond market, MS is being treated like “a junk-rated company.” Moody’s the rating agency that sells their ratings to whomever will pay for a triple A score, have announced they will downgradge MS’ ratings which would put all US banks at risk.

Otis Caset, director of credit research at Markit confirms: “What has driven that, obviously, is Europe. The perception is — correctly or incorrectly — that Morgan Stanley is one of the U.S. banks most exposed to Europe’s problems.”

In 2008, with the first pre-meditated financial explosion , the cause for the bailout of the banks was a large sum of cash needed quickly to repay China who had purchased large quantities of mortgage-backed securities that went belly-up when the global scam was realized. When China realized that they had been duped into buying worthless securitized loans which would never be repaid, they demanded the actual property instead. The Chinese were prepared to send their “people” to American shores to seize property as allocated to them through the securitized loan contracts.

Continue reading →

Matt Taibbi ~ Free $10 Million Loans for All!

Posted on by
1

Rolling Stone | RS_News | April 21 2012

OPINION ~ Have been on deadline this week, but wanted to post a few interesting links:

I hope everyone saw ex-Federal Deposit Insurance Corporation chief Sheila Bair’s editorial in the Washington Post, entitled, “Fix Income Inequality with $10 million Loans for Everyone!” The piece might have set a world record for public bitter sarcasm by a former top regulatory official.

In it, Bair points out that since we’ve been giving zero-interest loans to all of the big banks, why don’t we do the same thing for actual people, to solve the income inequality program? If the Fed handed out $10 million to every person, and then got each of those people to invest, say, in foreign debt, we could all be back on our feet in no time:

Under my plan, each American household could borrow $10 million from the Fed at zero interest. The more conservative among us can take that money and buy 10-year Treasury bonds. At the current 2 percent annual interest rate, we can pocket a nice $200,000 a year to live on. The more adventuresome can buy 10-year Greek debt at 21 percent, for an annual income of $2.1 million. Or if Greece is a little too risky for you, go with Portugal, at about 12 percent, or $1.2 million dollars a year. (No sense in getting greedy.)

Continue reading →

Pull Your Money Out of Bank Of America

Posted on by
Reply

By Matt Taibbi (Rolling Stone) | RS_News
October 31 2011

My good friend Nomi Prins has a great new piece out that I just caught on Zero Hedge, chronicling 10 reasons why depositors should pull out of Bank of America.

Obviously Goldman, Sachs has become the great symbol of investment banking corruption, and other companies like AIG and Countrywide have become poster children for problems with businesses like insurance and mortgage-lending. But when it comes to commercial banking, Bank of America is as bad as it gets.

The markets, of course, have lately come to agree, as B of A has lately been downgraded again to just above junk status. The only reason the bank is not rated even lower than that is that it is Too Big To Fail. The whole world knows that if Bank of America implodes – whether because of the vast number of fraud suits it faces for mortgage securitization practices, or because of the time bomb of toxic assets on its balance sheets – the US government will probably step in to one degree or another and save it.

The government’s patronage of the bank was never clearer than in recent weeks, when B of A quietly decided to move trillions of dollars (trillions, not billions) in risky Merrill Lynch derivatives contracts off Merrill’s books and onto the books of the parent/retail arm, Bank of America.

This decision was done at the behest of counterparties to those transactions, who wanted those contracts placed under the aegis of Bank of America, whose deposits are insured by the FDIC. The move was made, according to reports, so that Bank of America could avoid posting $3.3 billion in collateral to satisfy the company’s creditors. In other words, Bank of America just got You the Taxpayer to co-sign as much as $53 trillion worth of dicey derivative contracts.

Continue reading →

Is Bank of America Headed for the Glue Factory?

Posted on by
Reply

By Mike Whitney (CounterPunch) | Reader Supported News
22 October 11

Photo: alertsec.com

Why is Bank of America moving derivatives from Merrill Lynch to an insured subsidiary? Is it because the derivatives could blow up at any time leaving Merrill with gigantic, unsustainable losses? If that’s the case, then it would make perfect sense to shift them into a depository institution that’s covered by the FDIC. That way, the taxpayers would wind up paying for the damage and no one would be the wiser. It’s like a stealth bailout, right? The only problem is that Bloomberg let the cat out of the bag, so now everyone knows what’s going on. And that’s going to be a very big problem for B Of A. Here’s a clip from the Bloomberg article:

“Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.

“The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.

“Three years after taxpayers rescued some of the biggest US lenders, regulators are grappling with how to protect FDIC-insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among US firms.” (“BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit”, Bloomberg)

There are two things worth noting in this article. First, according to Bloomberg, “the transfers (of derivatives) are being requested by counterparties.” Well, how do you like that? In other words, the investors on the other side of these contracts want Merrill to put them under an insurance umbrella provided by the FDIC.

Continue reading →