Can a bank confiscate your deposits? The War on Cash.

Two things:
1. Safe Deposit Boxes are not part of the banking system. Their contents never show up on the books of the bank as a credit, deposit, liability, or anything else. It is really just tradition (and the fact that banks already have security in place) that resulted in banks being the primary renters of SDBs - any company could go in the business of renting out storage boxes/drawers.

2. The issue of converting funds to equity is inaccurate. If you read the text, it says "converting a sufficient amount of the unsecured debt from the original creditors of the failed company into equity". This is about trying to make the original bank's investors and lenders whole. It doesn't have anything to do with depositors or deposits. Even though the deposits are liabilities, that doesn't make the depositor a creditor.

This looks like a typical "sky is falling" rhetoric used to justify silver stacking and similar endeavors.

 

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I have no bullion to sell, and I resent your implication. What part of my post do you find misleading or untrue??? I have outlined THE LAW some of you are blissfully unaware of. Furthermore, it is an inconvenient FACT that FDIC has only a small fraction, in capital, of the total (insured) bank deposits in the United States.

I know the State you live in; it's the State of Denial. If you someday lost even a thousand bucks, you'd be screaming your head off.

Finally, try buying groceries with the "equity" position you have after a bank fails...

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for new member Doug Wheeler:

Type this phrase into Google and tell us what you find:
"Is a bank depositor an unsecured creditor of the bank?"

 

Shouldn't this be in a political forum?

 

General discussion at a minimum. I thought it was there already.

 

Originally, the key point was that some collectors keep their coins in a SDB, and some collectors keep their coin-buying money in the bank. I don't know a better alternative, but all of us need to be aware of the law(s).

 

I wouldn
t be screaming my head off since I lost quite a bit more than $1,000 in 2008. Try about $60,000!

As for your post..............it's pretty meaningless in that there is NOTHING that anybody can do about it. Nothing.

Resent my opinions all you want but your post is nothing more than scare tactics used by many around the country to induce fear and anxiety in honest Americans.

 

Being an honest American has nothing to do with being aware of dishonest and predatory banks.

The thing you can do, vote for Congressional candidates who oppose some of these laws. That's no guarantee of anything happening.

 

Sure they can. All they do is make a Law and it's there's

 

There is NOTHING that can be done because, regardless of who I vote for, its always the "other guy" (wink wink) that keeps the law around.

While I do understand and support the premise of voting I also understand that each Representative or Senator that is elected has a "primary" responsibility to their "electorate". Not mine. My Senator(s) are out gunned 98 to 2.

Federal Banking Laws can be "affected" by our elected representatives but they cannot be changed. That change has to come from a higher power that, unfortunately when they use that power, get raked over the political coals and called dictator. Specifically, Presidential Executive Orders.

As for Safety Deposit Boxes? These have been in the news on multiple occasions from banks getting the names and numbers wrong and selling the contents to burglars boring holes in the ceilings and making off with nothing more than SDB contents (the subject of a movie based upon a true story-The Bank Job).

Stuff happens. Mistakes are made. The only guarantee's are insurance of SDB Contents BUT, and SDB is so much more secure than a safe in my house and a lot cheaper if I were to address Fire and Walk Off properties of a safe.

 

A wise person once told me, "Worry about the things you can control."

 

This search finds lots of pages/articles similar to your original post, but nothing that is official. I haven't seen anything official/legal that states a depositor is an unsecured creditor.

To clarify my original statement: Being a depositor doesn't automatically make you an unsecured creditor. If you have deposits that exceed the FDIC insured limit and the bank becomes insolvent, then you become an unsecured creditor for any uninsured amount that the bank is unable to cover.