"How...Banks Will Seize Deposits During the Next Crisis"

[WilliamL]

(This is somewhat old news, but I'm not aware that it has been discussed here.)

"Deposits are considered liabilities according to US Banking Law. In this legal framework, depositors are creditors.

So… if a large bank fails in the US, your deposits at this bank would either be “written-down” (read: disappear) or converted into equity or stock shares in the company. And once they are converted to equity you are a shareholder not a depositor… so you are no longer insured by the FDIC.

So if the bank then fails (meaning its shares fall)… so does your deposit.

Let’s run through this.

Let’s say ABC bank fails in the US. ABC bank is too big for the FDIC to make hold. So…

1)   The FDIC takes over the bank.

2)   The bank’s managers are forced out.

3)   The bank’s debts and liabilities are converted into equity or the bank’s stock. And yes, your deposits are considered a “liability” for the bank.

4)   Whatever happens to the bank’s stock, affects your wealth. If the bank’s stock falls at this point because everyone has figured out the bank is in major trouble… your wealth falls too.

This is precisely what has happened in Spain during the 2012 banking crisis over there. Since then it’s also happened in Cyprus, Greece…and it is now perfectly legal in the US courtesy of a clause in the Dodd-Frank bill. "

http://www.zerohedge.com/news/2015-10-06/how-and-why-banks-will-seize-deposits-during-next-crisis

[Vendtre]

Sadly this is accurate.  It is why people need to be diversified and I try to avoid the large banks as they are more prone to have this happen to them.

Though there is a part of me that thinks if it gets to this point it will not matter as all our money will be worthless. 

[Guest]

Also, the Feds will come for your precious metals, your gold and silver.

[Vendtre]

13 minutes ago, Rick_Parker said:

Also, the Feds will come for your precious metals, your gold and silver.

How will they know who has precious metals?  And why would they want them? If the economy crashes they will be as worthless as the money. 

[WilliamL]

1 hour ago, Vendtre said:

How will they know who has precious metals?  And why would they want them? If the economy crashes they will be as worthless as the money. 

Precious metals will last a little while longer, but not much. But so few Americans actually have any, that it is pretty much irrelevant.

1 hour ago, Rick_Parker said:

Also, the Feds will come for your precious metals, your gold and silver.

The Feds will be trying to save their own power and skins, so this would probably be a low priority to them, except perhaps for major holders. Soon after the economic crisis of the 3rd Seal comes the chaos of the 4th Seal. And this is a huge country to try to govern without the consent of the people. The recent gun-grabbing and gun-restricting laws passed in NY and Connecticut were largely ignored.

[MorningGlory]

This should be titled the 'what if', 'maybe it will', 'my psychic told me' thread.  Those who walk around with their heads in possible CTs don't see the world staring them in the face.

[hmbld]

As the debt increases exponentially all over the globe, sooner or later it will reach a point of no return(I think it already has) and all the superficial wealth will be confiscated or simply vanish. Keep charging all your credit cards and promise to pay but never actually make a payment and see what happens!

[Guest]

2 hours ago, Vendtre said:

How will they know who has precious metals?  And why would they want them? If the economy crashes they will be as worthless as the money. 

Everyone has to buy precious metals from a broker. If you don't think that the government doesn't have or can't get access to that information on who has bought precious metals from these vendors, you don't know our government's reach. And, when the dollar becomes worthless, than precious metals will become more valuable, as the world goes by the gold and silver standard; and since the OWG will control all currency and when the chip takes hold (after the Rapture), they for sure will come after any currency (metal or paper) because Scripture tells us that no one will be able to buy or sell without the mark. The same will happen to firearms. They will enter every home (it will be marshal law then) search and confiscate all weapons and currency. Only the black market will have access to precious metals and gems.

[simplejeff]

Millions of millionaires and hundred-thousand-aires have been doing that for decades.

The government bailed them out for pennies on the dollar, often 10% of their debt or less, to be borne by every one.

This includes income tax due of $100,000((pay $10k to be free of it)) or more, into the millions.

If you're poor , and only in debt $800. or $4800.  , sorry,  pay more.

If you're not in debt , sorry, pay for the others.

Same with $100,000 and up insurance policies.  Everybody pays.

5 minutes ago, hmbld said:

As the debt increases exponentially all over the globe, sooner or later it will reach a point of no return(I think it already has) and all the superficial wealth will be confiscated or simply vanish. Keep charging all your credit cards and promise to pay but never actually make a payment and see what happens!

 

[missmuffet]

9 minutes ago, Rick_Parker said:

Everyone has to buy precious metals from a broker. If you don't think that the government doesn't have or can't get access to that information on who has bought precious metals from these vendors, you don't know our government's reach. And, when the dollar becomes worthless, than precious metals will become more valuable, as the world goes by the gold and silver standard; and since the OWG will control all currency and when the chip takes hold (after the Rapture), they for sure will come after any currency (metal or paper) because Scripture tells us that no one will be able to buy or sell without the mark. The same will happen to firearms. They will enter every home (it will be marshal law then) search and confiscate all weapons and currency. Only the black market will have access to precious metals and gems.

Yes,I agree.