can banks fail is your money safe prepping SHTF hi it's AlaskaGranny Alaska Prepper it's
important to follow the news and to get news information from several sources
so that you can try to glean for yourself what is actually really going on
maybe you've been reading about people saying we're in such economic downturn and
everything costs more and our government is going to be bankrupt is it possible that our banks
could fail do we need to not trust the bank some people are saying to buy cryptocurrency and take
all your money out of the bank it's hard to know what to do what is bank failure well i decided
to do some research on what is bank failure a bank failure is the closing of an insolvent bank
by a federal or state regulator the comptroller of the currency has the power to close national banks
banking commissioners in the respective states close state chartered banks banks close when they
are unable to meet their obligations to depositors and others when a bank fails the federal deposit
insurance corporation covers the insured's portion of a depositor's balance so if we're understanding
bank failures a bank fails when it can't meet its financial obligations to creditors and depositors
this could occur when the bank in question has become insolvent or because it no longer has
enough liquid assets to fulfill its payment obligations so we know when a bank fails
we're assuming the fdic insures its deposits and finds a bank to take it over its customers will
likely be able to continue using their accounts debit cards and online banking tools bank failures
are often difficult to predict and the fdic does not announce when a bank is set to be sold or
is going under it may take months or years to reclaim uninsured deposits from a failed bank
the key word there though is uninsured deposits so when a bank fails it may try to borrow money from
other solvent banks in order to pay its depositors if the failing bank cannot pay its depositors a
bank panic might ensue in which depositors run to the bank in an attempt to get their money
back this can make the situation worse for the failing bank by shrinking its liquid assets as
depositors withdraw cash from the bank since the creation of the fdic the federal government has
insured bank deposits up to 250 000 dollars in the u.s when a bank fails the FDIC takes the reins and
will either sell the failed bank to a more solvent bank or take over the operation of the bank itself
ideally depositors who have money in the failed bank will experience no change in their experience
of using the bank they'll still have access to their money and should be able to use their debit
cards and checks as normal in the event that a failed bank is sold to another bank account
holders automatically become customers of the bank and may receive new checks and debit cards
during the 2007-2000 financial crisis the biggest bank failure in u.s history
occurred when washington mutual with 307 billion dollars in assets closed its doors that's hard to
believe that that much money was in one bank poof the FDIC was created in 1933 by the banking act
and if you think back to the depression one third of american banks failed by the time
the fdic was created american depositors had lost 140 billion dollars due to bank failures
you can see why people are still concerned how can you protect your assets with bailouts
governments inject money into troubled banks and corporations to help them avoid bankruptcy
but that isn't the case with bail ins because banks use the money they have available from
depositors and unsecured creditors to help them avoid failure that means your money may be at
risk if you have more than 250 000 dollars in an account which most of us don't have that problem
but if you do make sure that you spread it among different banks and that you don't go over 250
thousand dollars in any one account or bank if you want to protect your assets here are some tips
keep a watchful eye on the performance of financial markets and financial sectors
ensure the financial institutions you choose are financially secure and stable okay they already
told us even the government doesn't know and won't tell us i don't know how we as average
people who are trying to put food on the table and gas in the car are supposed to keep track of this
i think we're all more at risk of a bank bail in now that the government will not bail them
out we have to make sure that our money remains protected so make sure your account balances
don't go above the 250 000 limit keep up to date with changes to federal government guidelines
related to banking and financial matters which is almost impossible for some of us to figure out
the Dodd-Frank Wall Street Reform and Consumer Act which came in response to the great recession
means the federal government will no longer inject taxpayer dollars to prevent big bank
failure instead banks now have the authority to use debt capital as equity to avoid going under
this includes capital from unsecured creditors common and preferred shareholders bondholders and
depositors whose account goes over the 250 000 dollar limit i went on to the FDIC website they
actually have a failed bank list and the banks the number of banks that have failed since 2000
is 563. you can go on to this website you can see the failed bank list and you can
read all about them and i thought it was rather shocking because i was unaware that it was that
this existed the FDIC also on their website tells you about privacy and how they can collect all of
your information and then it almost sounds like i suppose they're trying to keep us safe but it it
sounds a little daunting that any information may be used by the federal state local and foreign law
enforcement authorities to accord administrative tribunal a party and litigation to contractors
agents and third parties as authorized by law or used according to any of the other routine
uses described in the FDIC insured financial institution liquidation records you don't even
know how they use our information anymore so i that did not make me feel more secure the federal
deposit insurance corporation is an independent agency created by the congress to maintain
stability and public confidence in the nation's financial system that's something to think about
isn't it they also have a resolution handbook but oh look it is being revised since 2014.
you'd think they'd have gotten around to that by now wouldn't you so what do we know can the
banks fail is it possible all i know is that as a prepper i want to make sure that i have an ample
amount of cash on hand not in the banks not dependent on the ATM even if there's a power
outage the atms don't work the gas pumps don't work keep some cash on hand and think about what
are your absolute necessities that you need to pay for and that would include keeping a roof
over your head keeping your lights on keeping gas in your car keeping your family fed it does not
include things like cable tv it does not include the internet those are not necessities those are
luxuries you need to have enough that you can absolutely be able to take care of yourself for
a week two weeks maybe a month no one knows what's coming but you don't want to have a power outage
or some kind of a catastrophe or who knows what's going on with the government we don't know where
we might wake up and yes the banks are insured but they're closed and you can't get the money
out and so you may eventually get it but look at how insurance companies work look at how
our government is running and look at how they're handling catastrophes they're not addressing the
issues that a lot of us think are important in our world today so make sure that you have
cash on hand absolutely have some small bills keep your pantry full keep your car full of gas
and pay attention to what's going on but don't dwell on it all day long remember to enjoy your
life to spend the time with those you love and enjoying each day that you have but you also
need to prepare for an unknown future so while i don't like where these words are going these
events what they're leading to it's only prudent that we realize we need to be prepared more
now than ever these are very dangerous and concerning times and we need to do everything we
can to stay aware of what is happening and prepare accordingly if you liked my video i hope you'll
share it with someone else you think might like it please subscribe to the AlaskaGranny channel
youtube prepper prepping channel