Beginning of the end?

[hpdrifter]

FDIC insurance is a joke, especially if you have money in a big bank. Think your money is protected? Think again. It’s an illusion.

In 2021, JP Morgan had $2.4 trillion in deposits, but the FDIC currently only has/had $125 billion to cover deposits. So if, for example, JP Morgan were to collapse, you would get 5% of what is in your account? Someone correct me if I’m wrong here. The FDIC didn’t even have enough funds to cover these 2 midsized banks that collapsed.


Unless you have connections to DC, you ain’t getting squat. Janet Yellen, in a round about way, even stated this.

Yep, if there's a major meltdown, kiss your money goodbye.

[Zmaxhunter]

Lots of China accounts in SVB

[TeamAmerica]

FDIC insurance is a joke, especially if you have money in a big bank. Think your money is protected? Think again. It’s an illusion.

In 2021, JP Morgan had $2.4 trillion in deposits, but the FDIC currently only has/had $125 billion to cover deposits. So if, for example, JP Morgan were to collapse, you would get 5% of what is in your account? Someone correct me if I’m wrong here. The FDIC didn’t even have enough funds to cover these 2 midsized banks that collapsed.


Unless you have connections to DC, you ain’t getting squat. Janet Yellen, in a round about way, even stated this.

The frustrating part of this is estimates were that they could have gone thru a normal FDIC liquation process and gotten 90 cents on the dollar for uninsured depositors! But they had to bail out their cronies.

After all who is gonna buy all the trillions in debt securities issued to fund our lavish govt! These banks!

Apparently roku had one single corporate account at svb with over $450M! Terrible risk mgmt!

[91cavgt]

And the hits keep rolling in!!!


Think that just because you don’t have money in one of these failed/failing banks that all of this doesn’t have any effect on you? Think again.

Bank of America, Citigroup, JPMorgan Chase and Wells Fargo announced today they are each making a $5 billion uninsured deposit into First Republic Bank.

Goldman Sachs and Morgan Stanley are each making an uninsured deposit of $2.5 billion

BNY-Mellon, PNC Bank, State Street, Truist and U.S. Bank are each making an uninsured deposit of $1 billion, for a total deposit from the eleven banks of $30 billion.

So all of those banks listed above now have skin in this game by making uninsured deposits into First Republic Bank which is still on the verge of collapsing. But this is just their money that the banks are messing with, it’s not our money right? Wrong. Banks take deposits and use them for “investments”. Your deposit into a bank is the exact same thing as giving the bank money that they then turn around and use it to try to make the bank more money. Most times it does work out, but here lately it appears as though those investments have not worked out so well.


So why would all of these massive banks deposit $30 billion into a failing bank? If they just let that little bank fail then they would end up with more customers, right?

The big banks are trying to stop the contagion. It is like a giant dose of penicillin to stop a contagious disease. The disease is called bad investments, which EVERY big bank has a lot of in their balance sheets.


This is far from over folks. Oh look, here comes a big distraction to get your attention away from this mess.

[hpdrifter]

It just keeps growing!

[Lawhunter]

lol

[hpdrifter]

lol

https://fortune.com/2023/04/24/first...plans-layoffs/

First Republic Bank lost more than $72 billion in deposits during the first quarter—and plans to lay off up to 25% of its workforce

[RiverRat1]

I really don't see these banks as becoming an issue. If I understand they just locked up too much money in low interest rates. They didn't pay enough interest compared to investment firms so people moved money. Once their "investments" mature they will then be able to pay higher rates once they reinvest.

Question is how will they attract money back to traditional banks?

[hpdrifter]

I really don't see these banks as becoming an issue. If I understand they just locked up too much money in low interest rates. They didn't pay enough interest compared to investment firms so people moved money. Once their "investments" mature they will then be able to pay higher rates once they reinvest.

Question is how will they attract money back to traditional banks?

maybe, maybe not. one failure, two failures opens a lot of eyes.
investors get nervous. stuff happens.

[Artos]

https://twitter.com/profstonge/status/1651597150906642432