6 USA Banks at Risk of Bank Runs as $1Tn Uninsured Deposits Raises Risk of Bank Failures - JoeBlogs

[TexasTowelie]

Signature Bank has collapsed after experiencing a LIQUIDITY CRISIS following a RUN of withdrawals. This Crisis comes within days of the Collapse of SILICON VALLEY BANK and the Liquidation of Silvergate Bank which both encountered the same problems. In this video I look at the BAILOUT scheme put in place by the USA and discuss the ongoing risks as well as providing details of the 6 USA Banks that Moody's have DOWNGRADED and discussing the situation with Swiss Banking Giant Credit Suisse.

Chapters:
0:00 Intro
2:48 BANK TERM FUNDING PROGRAM
8:06 LOAN RATIOS
10:45 TIER 1 CAPITAL
12:14 MOODY'S RATINGS
17:56 CREDIT SUISSE
21:25 SUMMARY & CONCLUSION

[lapfog_1]

1. ok, but what he is fear mongering over

is ALWAYS the case.

You want your money to work for you... so you put it in a bank and earn interest on your balance. For the BANK to make money to pay you the interest, they must loan the money to someone or buy an asset... that they hope (or were promised) would go up in value, T-Bills, short term loans, mortgages, car loans, and... bonds.

Once your deposits are locked up in a long term asset, they need to either sell the asset or recall the loans to payout your account if you demand your deposits back.

Nothing new here. Watch "It's a wonderful Life" for the simple plain spoken explanation "your money's not here, it's in Joe home, etc"

So... any run on the banks where a substantial number of depositors ask for their money back will ALWAYS cause a bank failure. The question is how many depositors the banks has, and if all come looking for their money at once.

That is the system we have bought into. Period.

you can always take your money and stuff it in your mattress if you don't like this system.

But lets not kid ourselves that somehow we can make any bank 100% safe.

And lets not become fearful of bank failures (which happen routinely for many reasons).

[TexasTowelie]

2. However, I think you may have missed the point of the video

which is the amount of uninsured assets that are at banks. We've read about companies that are unable to make payroll because even though they might deposit a set amount into an account every couple weeks, that amount exceeds $250,000 so even small to medium size businesses are exposed to that financial risk, particularly with inflation.

With that in mind, it appears that the FDIC may need to insure accounts for a higher amount than the current limit. The debate is where that limit should be such that the average run-of-the-mill customers and the businesses I mentioned are protected versus an amount that encourages speculation among the financial officers of the bank. I'm not particularly keen or concerned about protecting the deposits of venture capitalists and the crypto industry since they inherently know that they are assuming more risk and could lose all of their money based upon the nature of their investment (aka "the gamble&quot when compared to the average bank customer.