The FDIC is no longer just an insurance agency, but the primary executor for the bail-in process
This however is no longer true, and in fact, the FDIC has taken on a much larger role. Back in 2012, the FDIC met with the Bank of England in a joint conference to hash out the framework for bail-in procedures should not only banks go insolvent, but also should there be a sovereign debt default in the wake of a financial collapse. And perhaps most importantly for the common man and individual, the FDIC now has the power to write down your account without ever having to compensate you through promised insurance as they were required by law prior to this conference, and the passage of Dodd-Frank.
“Title II of the Dodd-Frank Act provides the FDIC with new powers to resolve SIFIs [systemically important financial institutions] by establishing the orderly liquidation authority (OLA). Under the OLA, the FDIC may be appointed receiver for any U.S. financial company that meets specified criteria, including being in default or in danger of default, and whose resolution under the U.S. Bankruptcy Code (or other relevant insolvency process) would likely create systemic instability.
[In the US] Title II requires that the losses of any financial company placed into receivership will not be borne by taxpayers, but by common and preferred stockholders, debt holders, and other unsecured creditors, and that management responsible for the condition of the financial company will be replaced…
[In the UK] The introduction of a statutory bail-in resolution tool (the power to write down or convert into equity the liabilities of a failing firm) under the RRD is critical to implementing a whole group resolution of U.K… But insofar as a bail-in provides for continuity in operations and preserves value losses to a deposit guarantee scheme in a bail-in should be much lower than in liquidation. Insured depositors themselves would remain unaffected. Uninsured deposits would be treated in line with other similarly ranked liabilities in the resolution process, with the expectation that they might be written down.
In other words… any liability at the bank is in danger of being written-down should the bank fail. And guess what? Deposits are considered liabilities according to US Banking Law and depositors are creditors.
www.roguemoney.net/stories/2016/3/28/the-fdic-is-no-longer-just-an-insurance-agency-but-the-primary-executor-for-the-bail-in-process
HSBC’s James Steel: Gold is a Highly Regarded Asset
HSBC’s James Steel says you need a tinge of caution in the market and that Gold is a highly regarded asset and performs very well when other things do not. He speaks with Tom Keene and Barry Ritholtz on Bloomberg Surveillance.
www.bloomberg.com/news/audio/2016-03-28/steel-gold-is-a-highly-regarded-asset
China Investors See Golden Op: Jewelry demand takes back seat to demand for Gold coins & bars as haven
www.wsj.com/articles/chinese-investors-see-golden-opportunity-in-gold-1459160948
Moral to the story, if you have more than about 30 K on deposit, you’re wise to consider adjusting that.