Truist is in trouble. Please read ALL your account disclosures, USAA just had some concerning changes in withdrawal “ rules”.
It’s coming.
The biggest reason for the instability is because banks have extended themselves too far with making loans with your money.
“Burdened” by lack of a taxpayer backstop. Truly Orwellian language in use today.
Just in time for the shamlection
The at risk banks have all reported a 50% or higher ratio of uninsured deposits to total deposits. Basically, they simply do not have the hard currency to shell out in the event of a panic.
The two things are totally unrelated. Whether the depositor gets paid or not from deposit insurance has nothing to do with cash on hand.
And didn't the SVB bailout of the tech billionaires show that all deposits are covered if the right person is the depositor.
The plan is to confiscate all of our money.
Sounds like they were trying to protect her from getting scammed. Why does an elderly person with a caretaker need $5,000 cash? Hard to think of any legitimate reason. Street drugs or firearms of questionable origin are the only ones that come to mind for not leaving a paper trail. And for a large cash withdrawal from a small branch, it's probably best to call ahead for a few days. I did do a large cash withdrawal one time. Got to chat with a nice FBI agent about it.
“My 92 year old mother called me yesterday crying….Truist denied her a $5,000 cash withdrawal.”
Any teller should be suspicious of that.
I have checks to pay contractors and suppliers.
I pay property taxes and the fire department dues by bank transfer.
“Basically, they simply do not have the hard currency to shell out in the event of a panic.”
That can’t be true! Mother Government’s printing presses have been running non-stop since about 1980. There’s GOT to be PALLETS of cash just lying around!
*SMIRK*
Yeah, “large” cash withdrawals are usually an issue at most banks/CU’s (advance notice usually required...(they don’t keep as much cash around as you might think they do).
Truist Bank’s policy on large cash w/d’s: (page 17)
“Large Cash Withdrawals. For security reasons and in order for us to properly prepare for such requests, we require advance notice for large cash withdrawals. We can refuse an order to withdraw funds in cash or to cash an item if we believe that the request is a security risk or will result in a hardship on the Bank. We may require you to accept an Official Check or electronic transfer to receive the funds. If we agree to a large cash withdrawal, you may be required to employ a courier service acceptable to us and at your risk and expense. If a large cash withdrawal is completed at a branch you will be required to sign a cash withdrawal agreement or affidavit. Refusal to sign the agreement is grounds for us to revoke the cash withdrawal and require an alternate delivery for the funds. You understand and agree that the Bank is not responsible for providing any security regarding any cash withdrawals or deposits.”
Neil Bush? Please pick up the white Courtesy Phone in the Lobby!
What companies might do is to pay employees on a ‘by Friday’ basis.
Don’t wait until Thursday or Friday to do the direct deposit.
SVB was not your “local” bank. Using that to compare with your local community retail bank is, for lack of a better term, ignorant. Or, intentionally inflammatory.
The banking system has been fueled on too many years of low cost money. The next recession is going to take its toll. But we are not seeing the idiotic lending that we saw from 2000-2007.
And no, it is not likely that we will see “bank runs” any time soon.
I’ve been following and learning of this issue over the last year.
I don’t recall the exact percentages on where the banking risks are at, but will try to pull them up from bookmarks. But I do believe at the time of deep states choosing they will pull the trigger and this orchestrated crash will go into effect.
For now, anyone ever hear of a “bail-in”?
After the crash in ‘08-09 new legislation was written regarding bail outs. Instead of tax payers bailing out “too big to fail” banks, under (Ibelieve it was the Frank-Dodd legislation) the depositors will now bail out the too big to fail banking institutions.
The fdic now insures depositors up to 250k. So let’s say an individual has 500k in a single deposit savings account. In the event of bank runs, and the fdic kicks in, the depositors (may get his/her insured funds) and the remaining 250k will be basically given in the form of bank shares of a failed bank.
Bail-In: Definition and Role in a Financial Crisis
https://www.investopedia.com/terms/b/bailin.asp
Why Bank Bail-Ins Are the New Bailouts
Food for thought, it’s not only our banks that have a fraction of cash reserves on hand, but the fdic is only presently funded less than 2% of what they are insured to cover.
Another issue that has been mentioned briefly is commercial real estate mortgages.
Prior to the fall out of the covid plandemic, the investment into commercial real estate at low percentage rates may have been a good incentive, at least in appearance.
However, due to covid many office workers were sent to work out of their homes, and many never returned. The vacancy rate of commercial office space increased drastically. Also due to the failing economy and increased business failures. This placed strains on the landlords and caused hardship for them to meet their mortgage obligations.
Somewhere around 30% of commercial real estate loans are coming due to be rewritten.
these loans currently sit on bank ledgers as unrealized losses. But when a 100 million dollar loan mortgage comes up for renewal and is only now worth a fraction of that value, it now becomes a bank liability rather than an asset.
How will banking institutions cover these losses? will these banks begin to fall like dominoes? and if they do, bank runs will occur. Will the fdic itself become insolvent?
I believe this will tank the value of the dollar and foreign investors have already been dumping the dollar in anticipation of what they see coming.
I believe this will bring in the cbdc to replace the physical fiat currency we now have.
Here’s a good example of commercial real estate value plummeting....
‘New York Commercial Real Estate Plunges 97.5% at Great Depression Levels’
When these failed lending institutions get placed on the auction block, many of the larger conglomerates will siphon off the most valuable assets for pennies on the dollar, leaving the worthless liabilities on the books for those who “bailed-in” and now have worthless shares of an insolvent bank.
Mine asks that for withdraws of over a thousand dollars that you give them advance notice so they can have it ready for you but I have gone in and asked for four thousand and gotten it.
No way it should be a "few days" and they do not have anything to "decide".
Now if your money is in a money market account that can be another thing.
But just for checking or savings account withdraw it should not be a problem.
My question is: After getting bailed out, did those high-flying executives at Silicon Valley Bank and Signature Bank get canned for unsound bank management? Or are they still pulling down hefty salaries and bonuses?
Big-shots getting fired is what’s needed to stop banks from getting at risk.
94 US Banks Burdened by Uninsured Deposits – Risk of Bank RunsNot to worry.
“What We See Can Be Unburdened By What Has Been” Marx/Harris
BTW: “Truist” not very strong financially...the “Weiss” Website has bank/CU ratings:
https://weissratings.com/en/bank/9846