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<p>[QUOTE="rhoggman, post: 410143, member: 13987"]Banks lend out many money at multiples of their cash reserves.... This is why the FDIC does not insure all deposits, or multiple accounts by the same person. There is only a fraction of depositors funds available to be given back. Hence the term "franctional reserve banking". A run on a bank gauruntees a bank failure because of this system. </p><p> </p><p>The question is not wether material items stored in Safety Deposit boxes is lent out like money. The question is are those goods retrievable in the event a a bank becoming insolvent? Like you said thse items are not insured. Who's property remains in the safety deposit box after a bank goes belly up?</p><p> </p><p>Has anyone looked into this on their box policies? I am not interested in theory... we know the goods still exist, but what is the procedure if this happens?[/QUOTE]</p><p><br /></p>
[QUOTE="rhoggman, post: 410143, member: 13987"]Banks lend out many money at multiples of their cash reserves.... This is why the FDIC does not insure all deposits, or multiple accounts by the same person. There is only a fraction of depositors funds available to be given back. Hence the term "franctional reserve banking". A run on a bank gauruntees a bank failure because of this system. The question is not wether material items stored in Safety Deposit boxes is lent out like money. The question is are those goods retrievable in the event a a bank becoming insolvent? Like you said thse items are not insured. Who's property remains in the safety deposit box after a bank goes belly up? Has anyone looked into this on their box policies? I am not interested in theory... we know the goods still exist, but what is the procedure if this happens?[/QUOTE]
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