Posted on 01/25/2013 3:30:02 PM PST by Nachum
US Federal Reserve is reporting a major deposit withdrawal from the nation’s bank accounts. The financial system hasn’t 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The first week of January 2013 has seen $114 billion withdrawn from 25 of the US’ biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed.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.
(Excerpt) Read more at rt.com ...
Come on admit it - don’t you trust Russian media more than the New York Times too?
Yup, I saw this.
(ahem) I didn't think that small withdrawal would even be noticed.
Paying down all that credit card debt from Christmas and New Years or Takin’ our money OUT of the country?
Take yer pick.
Hubby and I are going to a gun show in MA this weekend!
Food is a good choice, but antibiotics will just disable you when you need your strength the most. Use Garlic, Dell Immune, and zappers to deal with your infections; they always work without raising hell with your immune system. Honey is the best for skin infections, but useless for anything internal.
Small to you, but to the rest of us.... :o)
Proof as to why every gutless Elitist politician in DC has to be voted out; both parties. Proof of their gutless duplicity is evident to all.
You won’t hurt them by pulling out a few thou
Maybe true but its a few thou of mine they wont have. A few here and a few their will hurt.
It’ll take more than a few here and a few there to put a dent in $1.5 trillion in excess reserves.
every little bit helps. Why are the banks now complaining about people drawing out funds worse now than after 9/11??? Must be having an effect. More the merrier.
I heard no complaining, just a statement of fact.
Must be having an effect.
Right, deposits went from $5.48 trillion to $5.37 trillion. A massive 2% dip.
There’s enough concern to forcibly extract your nose from Bernanke’s backside, wind you up and set you to typing inanities on FR about it again, lol.
Banks have more deposits than they know what to do with. Don’t mean a thing.
2.15%?
Probably buying high priced guns and pricey ammo.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.