Bank Term Funding Program Ends Monday March 11th. Commercial Real Estate Fails Will Set Off Slew of Bank Failures.

BANK RUNS IMMINENT: Massive Bank Failures Signal Impending Financial Crisis - Withdraw Your Money Now?

Mar 08, 2024

The Banking Collapse

The financial world is on edge as Federal Reserve Chair Jerome Powell's alarming statement ". “I Expect There To Be Bank Failures” Guess what ends Monday? Bank Term Funding Program. This is one of the reasons Donald Trump said... "It's Over".

Fed Chair Powell says
I am sure there will be bank failures

#1 Banks by Statute are not required to hold any of your money in the bank. This is what is called the recently passed 0% reserve requirement.

Yes, the reserve requirement in the United States has been reduced to zero percent. The Federal Reserve announced on March 15, 2020, that reserve requirement ratios would be set to 0%, effective March 26, 2020, eliminating reserve requirements for all depository institutions[1][2][3]. This action was taken in response to the COVID-19 pandemic to jump-start the economy by allowing banks to use additional liquidity to lend[2]. As a result, depository institutions are no longer required to maintain deposits in a Reserve Bank account to satisfy reserve requirements[4]. This change has been in effect since March 26, 2020, and there are currently no plans to reinstate the reserve requirement[4].

Citations:

[1] https://www.federalreserve.gov/monetarypolicy/reservereq.htm

[2] https://www.investopedia.com/terms/r/requiredreserves.asp

[3] https://www.federalregister.gov/documents/2022/12/01/2022-26065/reserve-requirements-of-depository-institutions

[4] https://www.eidebailly.com/insights/articles/2020/4/federal-reserve-eliminates-reserve-requirements

[5] https://cointelegraph.com/news/why-isn-t-the-federal-reserve-requiring-banks-to-hold-depositors-cash

The reserve requirement for banks, also known as the reserve ratio, is the minimum amount of funds that banks must hold in reserves. Before March 2020, the U.S. central bank, the Federal Reserve, required banks to have a percentage of funds tied up in reserves. The percentage was 3% or 10% of money held in transaction accounts, such as checking accounts, and the percentage depended on a bank’s size. However, in March 2020, the Fed lowered the reserve requirement ratio to 0%, meaning there is no longer a reserve requirement for banks.

This change was made to stimulate the economy, and the 0% reserve ratio has remained in place since late March 2020

Remember, By Law Banks are held to the High Bar of Having a 0% reserve requirement meaning that if you put 1,000.00 in the bank you just made a $1000 unsecured loan to the bank.

#2 - 2023 Bank Failure Watch here in USA

As of today there have been 5 bank failures in 2023 that have been put into FDIC receivership.

These failures include :
1. First Republic Bank, San Francisco, CA
2. Silicon Valley Bank, Santa Clara, CA
3. Heartland Tri-State Bank, Elkhart, KS
4. Citizens Bank, Sac City, IA
5. Signature Bank, New York, NY

The total assets of these failed banks in 2023 amount to billions of dollars

The FDIC has taken various measures to protect depositors, such as entering into purchase and assumption agreements with other banks to assume the deposits and assets of the failed banks.

But look at the table below where you can plainly see The FDIC has less than 1% of deposits in their fund.

#3 When you make a Deposit in the Bank it is no longer your money but you are making an unsecured loan to the bank

Exploring Banking Realities: Rethinking the Notion of Deposits as Unsecured Loans

In the realm of banking, the commonly held belief portrays these financial institutions as deposit-taking entities, entrusted with safeguarding funds and facilitating loans. However You are not making a Deposit. By Law you are handing the bank an unsecured loan and they have no legal responsibility to keep any of your money in reserves. ZERO

In the extensive 5,000-year history of banking, studies have been conducted to substantiate the prevailing perception that banks function as deposit-taking institutions while also engaging in lending activities. However, a closer examination of the legal framework reveals a striking contrast to this common belief. The legal reality challenges the notion that banks take deposits and lend money, asserting that they do neither.

The term "deposit," traditionally associated with a secure placement of funds within a bank, is debunked by legal intricacies. Contrary to the conventional understanding, a deposit is not a bailment and is not held in custody at law.

Legal authorities, including courts and various judgments, unequivocally declare that when individuals provide money to a bank under the label of a deposit, it essentially constitutes a loan to the bank. This legal perspective renders the term "deposit" devoid of substantive meaning.

Deposit Clarification: The term "deposit" is deemed meaningless in legal terms. Courts and judgments emphasize that money given to a bank is essentially a loan.

Deposit as Record of Debt: What is commonly called a "deposit" is revealed to be the bank's record of debt to the public, challenging traditional understanding.

explained by Professor Richard Werner who is blacklisted by The Parasitic Class

#4 Smoke and Mirrors. Banks are Insolvent. FDIC Receivership is a SCAM. Here’s Why?

Look at the graphic below.

It shows total deposits in typical US commercial banks at $17.34 Trillion.
Yet there is only $128 Billion in the FDIC Fund.
This means US government and banking deposits are insolvent because funds in FDIC cover .74% of our collective deposits. That’s far less than 1%
Given the simple math (ratio), this means if you have $1,000 in the bank, all of it is wiped out, but you may be able to recover $7.41 out of your $1,000
Math formula below

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