Dec 12, 2013
Can the FDIC Protect Your Money From Another Crash?
Posted on Aug 31, 2013
The first of a planned three-part series on the dangers of private banking highlights government documents describing plans to confiscate the deposits of individuals as well as cities, universities, counties and pension funds when another banking crash occurs.
The film below, titled “Money Is Not Safe In The Big Banks,” was created by public banking advocates active in Philadelphia. The film encourages public officials to put funds they’re charged with keeping safe in institutions that do not engage in Wall Street-style derivatives gambling.
The filmmakers point out that holders of derivatives (contracts of payment based on the value of certain assigned assets and other complicated financial concepts) are first in line in the event of a bankruptcy—before shareholders, creditors and average citizens like you and me.
Mike Krauss, a former executive director of the Pennsylvania Republican State Committee, a founding director of the Public Banking Institute and chair of the Pennsylvania Project, says in the film:
Furthermore, the video states that the organization charged with protecting deposits in the event of a bank failure—the Federal Deposit Insurance Corporation—has only enough cash to cover .25 percent of all deposits and .0008 percent of banking derivatives.
—Posted by Alexander Reed Kelly.
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