FDIC "protection" now capped at $250,000 - UPDATE

Ann Barnhardt modified her FDIC statement but still includes warning:

Point taken on the FDIC post. It is probably still PER INDIVIDUAL PER INSTITUTION, not per individual across institutions - at least that section is still on the FDIC website (thanks for sending those citations in), however, my other point still overshadows that point: the FDIC only has a few billion in assets against ten trillion in customer deposits, with the big-5 banks having over a trillion in customer money each. The big point is, the FDIC is not in any realistic sense any sort of protection.

More FDIC Smoke and Mirrors

Posted by Ann Barnhardt - February 8, AD 2013 8:47 AM MST

A reader sent this in. Effective December 31, 2012, FDIC insurance became AGGREGATED with a maximum PER OWNER cap of $250,000.

Many of you are under the impression that FDIC protection is per account, and thus if you just keep your money spread around and never keep more that a quarter-mil in cash in any one bank that you are "safe".

Nope. It is tied to your Social Security number / Tax ID number now.

And remember, total bank deposits in the U.S. are somewhere around TEN TRILLION DOLLARS and the FDIC deposit insurance fund as of March 31, 2012 had a whopping $15 BILLION.

Bottom line: if you think your bank deposits are "insured" or "safe" because of FDIC protection, you're totally irrational.

CITATION HERE.

December 31, 2012 As scheduled, the unlimited insurance coverage for noninterest-bearing transaction accounts provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act expired on December 31, 2012. Deposits held in noninterest-bearing transaction account are now aggregated with any interest-bearing deposits the owner may hold in the same ownership category, and the combined total insured up to at least $250,000.

FDIC goes RED (thanks Obama!)

WASHINGTON -- The government insurance fund that protects more than $4.5 trillion of U.S. bank deposits slipped into the red at the end of September, after fifty banks collapsed during the third quarter.

Another lesson that federal guarantees aren't free...

Americans are about to re-learn that bank deposit insurance isn't free, even as Washington is doing its best to delay the coming bailout. The banking system and the federal fisc would both be better off in the long run if the political class owned up to the reality.

We're referring to the federal deposit insurance fund, which has been shrinking faster than reservoirs in the California drought.

The Coming Deposit Insurance Bailout

FDIC going broke!

See chart

Shell Game: Will they get away with it???

Besides this being the greatest heist in history,

There is another component to this insidious plan that should also be all too familiar to taxpayers: President Obama and Congress intend to run the scheme off budget, meaning that its funding will not be part of the usual appropriations and budget process (just like Social Security).

Tim Geithner, Treasury secretary, and Lawrence Summers, director of the White House national economic council, suspect that they cannot go back to Congress to fund their plan and so are raiding the Federal Reserve, the Federal Deposit Insurance Corporation and the remaining Tarp funds, hoping that there will be little public understanding and little or no congressional scrutiny. This is an inappropriate institutional use of the Fed, the FDIC and the Tarp.

And, lest anyone forget about the big difference between these two men,

Ronald Reagan arguably forfeited the mid term elections in 1982 by adopting a strict monetary policy to shrink the nation's money supply and end the high inflation that palagued the economy. This policy laid the foundation for a period of historic recovery and growth, but it was done at a serious political cost. Today the President and Congress have a similar duty to lead but they refuse to do so and instead offer policy that is borne of political expediency and cowardice. The disconnect between Congress and taxpayers has never been so stark.

Obama/Geithner Bank Plan Robs Tax Payers: Congress Drives The Getaway Car

FDIC SELLS OUT OUR ASSETS TO SOROS

Pamela Geller writes: This is why the government should stay out of everything except defense. They are selling us out to the enemy. SOROS SHOULD BE LISTED AS A TERROR ORG AND ANYONE AND EVERYONE SHOULD BE BANNED FROM DOING BUSINESS WITH THE CHIEF TERRORMASTER.

READ THIS AND WEEP!!!

Sen. Chuck Schumer (D) causes run on IndyMac Bank

Shmucky Schumer -- Sen. Chuck Schumer and the IndyMac Failure

By The Neville Awards
Posted July 12, 2008

There is a special place in hell reserved for liberal low-lifes like the "esteemed" senator from New York and Neville Award winner, Sen. "Shmucky" Chucky Schumer.

"Shmucky" (with apologies to Mark Levin) Schumer sent warning letters to the Federal Deposit Insurance Corp., the Office of Thrift Supervision, the Federal Housing Finance Board and the Federal Home Loan Bank of San Francisco. The letters reportedly said Schumer is concerned IndyMac "may have serious problems with its current loan holdings, and could face a failure if prescriptive measures are not taken quickly."

Chuck the Shmuck is either so stupid that he didn't know his letters to the FDIC would cause a run on the bank or he is so obsessed with having Barack Obama win in November he would deliberately collapse a bank that was already teetering so the failure could be blamed on the Republicans. With the mainstream press already in the tank for Obama the bank failure could easily be blamed on the Republicans.

Well, the letters immediately caused a run on the bank. IndyMac had already racked up almost $900 million in losses as home prices tumbled and foreclosures climbed to a record. IndyMac became the largest OTS-regulated savings and loan to fail, according to the FDIC.

It is very possible that IndyMac might have failed anyway. They were engaged in some very dubious practices like giving “Alt A” loans (loans in which the borrower is not required to provide proof of income).

But there can be no doubt that the immediate failure of IndyMac was caused by the despicable actions of this publicity seeking, grandstanding, lib loser, who, like all liberal politicians, was far more interested in what might be gained politically from the bank’s failure than he was about what the failure might mean to the bank's stockholders, employees, and customers.

Chuck the Shmuck Schumer’s actions were reckless and inexcusable given his position on the Senate Banking Committee and this screams censure and investigation.

Shmucky’s actions brought a strong rebuke from OTS Director John Reich, who said:

"This institution failed due to a liquidity crisis, although this institution was already in distress, I am troubled by any interference in the regulatory process."

Chuck the Shmuck blamed IndyMac's own actions and regulatory failures for the bank seizure.

"If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today," Shmucky sniffed in an e-mail yesterday. "Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs. Mr. Reich, a political appointee, should be spending less time playing politics and more time doing his job."

What unbelievable arrogance on the part of the "esteemed" senator.

One wonders, beyond the obvious boon to Obama, if Chucky has been selling IndyMac stock short, or if he has had any business dealings with New York based Aurelian Management, LLC or it’s president, Brian Horey. Aurelian was short-selling IndyMac shares to gain from declines in the days prior to this takeover by Federal Regulators.

At this point nothing would surprise us here at The Neville Awards.

www.nevilleawards.com/schumer.shtml