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.

 
searcher said:
Locally

Press Release: Second Federal Savings and Loan Association of Philadelphia Assumes All Deposits of Tioga-Franklin Savings Bank, Philadelphia - PRESS RELEASE | AUGUST 21, 2026 Second Federal Savings and Loan Association of Philadelphia Assumes All Deposits of Tioga-Franklin Savings Bank, Philadelphia ...
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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.
 
searcher said:
Update.

‘I have no money’: Thousands of Americans see their savings vanish in Synapse fintech crisis​

  • Thousands of Americans will receive little or nothing from savings accounts that were locked during the collapse of fintech middleman Synapse.
  • Customers believed the accounts were backed by the full faith and credit of the U.S. government.
  • CNBC spoke to a dozen customers caught in the predicament, people who have lost sums ranging from $7,000 to well over $200,000.
  • While there’s not yet a full tally of those left shortchanged, at fintech Yotta alone, 13,725 customers say they are being offered a combined $11.8 million despite putting in $64.9 million in deposits.
For 15 years, former Texas schoolteacher Kayla Morris put every dollar she could save into a home for her growing family.

When she and her husband sold the house last year, they stowed away the proceeds, $282,153.87, in what they thought of as a safe place — an account at the savings startup Yotta held at a real bank.

More:

www.cnbc.com

'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis

CNBC spoke to a dozen customers caught in the Synapse fintech predicament, people who are owed sums ranging from $7,000 to well over $200,000.
www.cnbc.com www.cnbc.com
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Update

searcher

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

Update

www.bankingdive.com

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 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.
 
www.bankingdive.com

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 www.bankingdive.com

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 www.bankingdive.com
 
www.sovereignmagazine.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 www.sovereignmagazine.com

www.fdic.gov

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 www.fdic.gov
 
the story is still unfolding, but paraguay just watched its 5th largest bank go under overnight

ueno bank had 2.94 million clients and ₲17.3 trillion in deposits, about $2.9 billion.

in a country of 7 million people, that's nearly half the population locked out of their accounts. cards, transfers, everything frozen

in march, ueno reported a 15% capital ratio against a 12% minimum. on paper it was fine

then regulators actually looked at the loan book. the bank had been lending to companies tied to its own owners "a sola firma", on a signature, with no collateral and no real credit analysis.

when the central bank told it to clean that up, other companies took out new loans to pay down the insider debt. same money going in a circle

once inspectors traced the money, the losses got recognized. capital went from 15% to below half the legal minimum

and the worst part: the single biggest depositor is IPS, paraguay's national pension fund, with about $290 million. roughly $850 million of public money is stuck inside

deposit insurance covers ₲228 million per person, about $38K. everything above that is now a claim against a failed bank

the central bank says this is "an isolated case" and not a problem with the system
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Crédit Mutuel Arkéa victim of a hack of more than 100 million euros without repercussion for customers

The bank has been the victim of an estimated hack of more than 100 million euros. Customers are not affected and the incident is now under control, according to the company.
...
... According to information from franceinfo, the money has been turned into cryptocurrency to get out of the bank.

Crédit Mutuel Arkéa - which is composed of the federations of Crédit Mutuel de Bretagne and Sud-Ouest - confirms to France Télévisions that it has "been the victim of an attack that allowed the realization of fraudulent operations, this incident is now under control". The company confirms that this "has no financial consequences" for customers, "their interests are fully protected". "As a precautionary measure," some transactions have been temporarily suspended, the bank added.

Since Wednesday morning, the bank's application is not accessible to customers, indicating an error message when logging in.
...
Click to expand...

More (French):
www.franceinfo.fr

Le Crédit Mutuel Arkéa victime d'un piratage de plus de 100 millions d'euros sans répercussion pour les clients

La banque a été victime d'un piratage estimé à plus de 100 millions d'euros. Les clients ne sont pas concernés et l'incident est désormais maîtrisé, selon l'entreprise.
www.franceinfo.fr www.franceinfo.fr
 
Looks like the French bank was a crypto hack. Report above didn't make that clear...

Prominent blockchain investigator ZachXBT has identified French banking group Crédit Mutuel Arkéa as the suspected victim of a cryptocurrency theft exceeding $133 million in a broadcast message on his Telegram channel earlier Wednesday.

ZachXBT first reported the theft on Monday, putting losses at more than $106 million. He later found another $27 million in withdrawals from centralized crypto exchanges — raising the total to more than $133 million — and stating the amount stolen could be higher once over-the-counter (OTC) trades are included.

Crédit Mutuel Arkéa confirmed the attack to CoinDesk on Wednesday, saying it had enabled fraudulent transactions but was now under control. The bank, which has over $250 billion in assets under management, did not disclose the amount stolen or whether the funds were originally held in traditional currency or cryptocurrency.
...
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More:
 
ATTENTION: Massive protests erupt in Paraguay's capital, Asunción, following the closure of the country's largest private bank due to lack of liquidity. Demonstrators demand the resignation of President Santiago Peña and clash with police. Millions of people have had their money frozen, including pensions.
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PARAGUAY: FINANCIAL CRISIS, RESIGNATION AT THE CENTRAL BANK, AND CROWDS DEMAND THEIR SAVINGS

The Ueno Bank crisis is shaking Paraguay. Thousands of depositors were left without access to their money after the Central Bank ordered the closure of the institution and the start of a resolution process, upon detecting that its solvency ratio had fallen below half of the legal minimum required.

The measure knocked out the app, the cards, and all banking services. At various branches, customers crowded together to try to withdraw their savings and demand explanations. Among those affected are workers, retirees, small merchants, and beneficiaries who receive state benefits through the institution.

The scandal also sparked a political crisis. Carlos Carvallo submitted his resignation from the presidency of the Central Bank at the request of President Santiago Peña. But the case has an even more compromising backstory: Carvallo had previously led Ueno before taking charge of the body responsible for supervising banks, while Peña was a business partner of the group that owns the institution until March 2025.

The Attorney General's Office has moved forward with investigation requests and arrest warrants against executives linked to the bank. Public funds deposited in Ueno have also come under scrutiny, including resources from the Social Security Institute and pension funds.

While the Government promises to guarantee the return of deposits, uncertainty is growing. The Central Bank reported that the guarantee covers up to 228.3 million guaraníes per depositor, but funds exceeding that limit raise questions about their recovery.

The situation inevitably stirs memories in Argentina. In December 2001, the banking corralito prevented millions of people from freely accessing their own savings. The images of depositors lining up, demanding outside banks, and banging on the doors of financial institutions.
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The most stable country in SA is Uruguay. In Central America its Panama. Both have solid banking systems. Paraguay has lots of freedom and you can even own guns, but it is considered more provincial or out in the sticks. I would not deposit any money there and would do transactions with an international app and local ATMs.

How can a responsible government let that happen in Paraguay with all the technology available today?
 
I made a large withdrawal yesterday. Not huge but large enough to get the attention of 2 tellers who proceeded to question me and give me my proctology exam so I could remove my own money.
When they asked what I needed the money for I told them, "nothing". I just want some cash on hand. They then proceeded to tell me that my money was safe in the bank. I said I know but that does me no good if the banks go down or the power is out for an extended amount of time. They then said that would never happen. I then told them that the US gov as well as many large governments around the world are warning their citizens to be prepared for anywhere from 7 to 90 days. They said they never heard of that. I said apparently not many have or you would have lines out the bank.

When they finished I then politely told them that the bank is a security risk. I said you just asked me to confirm my name address and other info in front of a bunch of customers here. On top of that you counted out thousands of dollars so now every person in this bank knows where I live and knows I have a bunch of cash on hand. At the same time they both covered their mouths like they just spewed a secret and they knew it. They also turned a couple of shades of red.

Kids today are clueless, just doing what they are told with no discretion and no critical thinking skills.
 
Cigarlover said:
I made a large withdrawal yesterday. Not huge but large enough to get the attention of 2 tellers who proceeded to question me and give me my proctology exam so I could remove my own money.
When they asked what I needed the money for I told them, "nothing". I just want some cash on hand. They then proceeded to tell me that my money was safe in the bank. I said I know but that does me no good if the banks go down or the power is out for an extended amount of time. They then said that would never happen. I then told them that the US gov as well as many large governments around the world are warning their citizens to be prepared for anywhere from 7 to 90 days. They said they never heard of that. I said apparently not many have or you would have lines out the bank.

When they finished I then politely told them that the bank is a security risk. I said you just asked me to confirm my name address and other info in front of a bunch of customers here. On top of that you counted out thousands of dollars so now every person in this bank knows where I live and knows I have a bunch of cash on hand. At the same time they both covered their mouths like they just spewed a secret and they knew it. They also turned a couple of shades of red.

Kids today are clueless, just doing what they are told with no discretion and no critical thinking skills.
Click to expand...

That's how the owners wanted things. Schools as indoctrination centers just smart enough to get the job done.
 
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