US banks shaken by biggest deposit withdrawals
since 9/11
Published: 25 January, 2013, 15:45Edited: 25 January, 2013, 16:43
The first week of January 2013 has seen $114 billion withdrawn from 25 of the US’ biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed.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.
There are a number of reasons behind this unpredicted fund outflow. Some experts believe it has to do with the beginning of the year when the money is randomly needed here and there. Others have concluded the funds are getting down to business and being invested.
Another set of data from the US Federal Reserve shows some deposits may have moved within the banking system from one type of account to another.
3 comments:
I though this was a good comment on the subject from a blogger on D's website ..Removing the Shackles
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Anonymous25 January 2013 19:17
articles used to give each other info that something is up and something has changed.
If you see something happen and 'they' pretend to not know why; you'd expect them to have an attorney, or an investigation, or a complaint against another entity.
http://www.businessweek.com/articles/2013-01-23/missing-114-billion-from-u-dot-s-dot-banks#r=rss
How does this come up missing?
For a bank, this is a big deal. This is not credit. It's not derivatives. It's real assets.
If they monetize their assets by 10, then they have to reduce their exposure by the amount of money missing, ie that they haven't received.
TO READ MORE GO TO
http://removingtheshackles.blogspot.com/2013/01/turn-on-light.html#comment-form
The report out of Russian Intelligence says, they had warned their own people living here, that something was amiss with the Federal Reserve System and that it is expected a "false flag" would happen sometime between when reported and February 12, this year.
Don't panic Folks, we have plenty more where that "stuff" came from...heck we'll even chop down the Amazon if we have to!!!
That's 500 Trillion Benjamin's right there!!!
The REAL PROBLEM is getting enough Freakin chainsaws...why isn't anyone talking about that??
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