No banks are safe (bail ins, FDIC limits, systemic risks)

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You wanna know how bad things really are? This is a good interview with an Expert on debt. It all comes down to the scams that have grown out of the old ratings agencies.

 
How does an institution (Any American bank) that has the power to LEND money into existence...go broke?

This stinks like politics. Like Barry Hussein's Grand Plan of putting those pesky little Building-and-Loans out of business, because, in his divine opinion, we had "too many" banks.

Too many to easily corrupt, he meant, of course. But one by one the neighborhood banks got stomped, shut-down, force-merged into WF or JPMC or BA...and this trend continues.

Soon they'll start attacking the credit unions. Already there's a merger-mania in my region over THOSE.
 

SVB ex-parent not entitled to $1.7B from FDIC

Silicon Valley Bank’s former parent company will not get $1.7 billion from the Federal Deposit Insurance Corp., a federal judge ruled, because some executives made decisions that led to SVB’s bankruptcy.
www.bankingdive.com
 

Update

Post in thread 'FDIC insured savings account plus lottery (USA only)'

Update

Synapse victims look to small-claims court

The Consumer Financial Protection Bureau has allocated more funds to repay fintech users harmed in the Synapse crisis. But there’s no timeline for when that money would be disbursed.
www.bankingdive.com
 
Just a look back in time.

How People Got Their Money After the 1933 Bank Closures​

When Franklin D. Roosevelt closed all banks in the U.S. in March 1933, it was part of a nationwide bank holiday ordered to stop panic withdrawals and give the government time to stabilize the system Wikipedia+1. For a week, Americans could not withdraw cash, make deposits, or transfer funds Federal Reserve History.

Immediate solution: reopening solvent banks
The Emergency Banking Act of March 9, 1933 authorized the Federal Reserve to issue new currency backed by “good assets” so that banks found solvent by federal examiners could reopen Wikipedia+1. The Treasury inspected each bank, reopened those that were financially sound, reorganized others, and closed insolvent ones Wikipedia. Once reopened, people could withdraw their deposits and resume normal banking.

Before reopening: alternative ways to access funds
During the closure, many people relied on checks, credit, and payment slips to continue transactions UW Departments Web Server. Businesses and individuals used:

  • Checks drawn on other banks that remained open or on the Federal Reserve’s own currency.
  • Credit arrangements with merchants who extended short-term credit.
  • Cash held at home for those who had saved it before the panic.
  • Barter and local credit networks in some communities UW Departments Web Server.
Government and Federal Reserve actions
The Federal Reserve distributed new currency from the Bureau of Engraving and Printing to ensure reopened banks could meet legitimate withdrawals Federal Reserve History. Roosevelt’s first Fireside Chat (March 12, 1933) reassured the public that it was “safer to keep your money in a reopened bank than under the mattress” Federal Reserve History.

In summary:
People did not lose their money permanently. The government’s rapid inspection and selective reopening of banks, combined with temporary alternative payment methods, allowed most depositors to regain access to their funds once the banking system was stabilized Wikipedia+2.
 

3 takeaways from stress test changes and a new SVB review

Fed Vice Chair for Supervision Michelle Bowman outlined three potential changes to stress-test calculations and an assessment of the central bank’s performance amid the 2023 collapse of Silicon Valley Bank.
www.bankingdive.com

State regulators float AI framework for banks, examiners

The Conference of State Bank Supervisors issued discretionary guidance that proposes eight questions examiners should consider and three tiers of risk banks face by using artificial intelligence.
www.bankingdive.com
 

Nano Banc: 2026's Largest US Bank Failure So Far

California closed Nano Banc on Sept. 25, 2026. The FDIC puts the cost at $114 million, the most of any US bank failure this year. What depositors need to know.
www.sovereignmagazine.com

Sunwest Bank Assumes All Deposits and Certain Assets of Nano Banc, Irvine, California | FDIC.gov

Nano Banc of Irvine, California was closed today by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver.
www.fdic.gov
 
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