think it can't happen here? Think again. Now is not the time to keep large sums of cash in a bank. I'm just sayin.
http://www.shtfplan.com/headline-ne...ze-your-money-to-recapitalize-itself_08272014
http://www.federalreserve.gov/newsevents/speech/fischer20140811a.htm
(if you don't want to read the whole agonizing thing the paragraph in question is located under the post crisis regulatory & Supervisory environment paragraph 2nd paragraph after the list of numbers.)
"Additional steps have been taken in some countries. For example, in the United States, capital ratios and liquidity buffers at the largest banks are up considerably, and their reliance on short-term wholesale funding has declined considerably. Work on the use of the resolution mechanisms set out in the Dodd-Frank Act, based on the principle of a single point of entry--though less advanced than the work on capital and liquidity ratios--holds the promise of making it possible to resolve banks in difficulty at no direct cost to the taxpayer. As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding--this cushion is known as a "gone concern" buffer."
In case you just want me to translate that, it means instead of the govt bailing out the banks and the tax payer being on the hook for it somewhere down the line, they will just have the banks TAKE your money and give you a bond promise to pay back note or the like. Scenario: you have 300k in the bank and wake up to find 1/2 or more of your cash has been funneled into a bond that your broke ass bank promises to pay back but your **** out of luck on using your own money.
http://www.shtfplan.com/headline-ne...ze-your-money-to-recapitalize-itself_08272014
http://www.federalreserve.gov/newsevents/speech/fischer20140811a.htm
(if you don't want to read the whole agonizing thing the paragraph in question is located under the post crisis regulatory & Supervisory environment paragraph 2nd paragraph after the list of numbers.)
"Additional steps have been taken in some countries. For example, in the United States, capital ratios and liquidity buffers at the largest banks are up considerably, and their reliance on short-term wholesale funding has declined considerably. Work on the use of the resolution mechanisms set out in the Dodd-Frank Act, based on the principle of a single point of entry--though less advanced than the work on capital and liquidity ratios--holds the promise of making it possible to resolve banks in difficulty at no direct cost to the taxpayer. As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding--this cushion is known as a "gone concern" buffer."
In case you just want me to translate that, it means instead of the govt bailing out the banks and the tax payer being on the hook for it somewhere down the line, they will just have the banks TAKE your money and give you a bond promise to pay back note or the like. Scenario: you have 300k in the bank and wake up to find 1/2 or more of your cash has been funneled into a bond that your broke ass bank promises to pay back but your **** out of luck on using your own money.
But for about 10 years now I've also tried not to leave too much sitting in somebody else's vault. 
