FDIC Bankers Discuss Business Collapse, "Bail-Ins" and How to Prevent Public Freak-out

𝐈𝐧 𝐭𝐡𝐢𝐬 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 2022 𝐦𝐞𝐞𝐭𝐢𝐧𝐠, 𝐅𝐃𝐈𝐂 𝐛𝐚𝐧𝐤𝐞𝐫𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐜𝐨𝐦𝐢𝐧𝐠 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐜𝐨𝐥𝐥𝐚𝐩𝐬𝐞 𝐚𝐧𝐝 𝐡𝐨𝐰 𝐭𝐨 𝐩𝐫𝐞𝐯𝐞𝐧𝐭 𝐏𝐮𝐛𝐥𝐢𝐜 𝐅𝐫𝐞𝐚𝐤-𝐎𝐮𝐭 (dated by WallStreetSilver on Twitter)

Definitions:
FDIC - Federal Deposit Insurance Corporation
Bail-out - Government gives money (your tax dollars) to private company to prevent its financial collapse
Bail-in - Financial institution seizes customer deposits to save itself from financial collapse. In exchange for the funds, the institution gives the customer shares (likely unsaleable) in the failing company.
TLAC - Total Loss Absorbing Capacity

Highlights:
00:03 - I don't think you have much hope of reaching a 𝐩𝐮𝐛𝐥𝐢𝐜 𝐭𝐡𝐚𝐭 𝐝𝐨𝐞𝐬𝐧'𝐭 𝐡𝐚𝐯𝐞 𝐚 𝐩𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥 "𝐧𝐞𝐞𝐝 𝐭𝐨 𝐤𝐧𝐨𝐰".

00:12 - I completely agree with that. I almost think you'd scare the public if you put this out, like "Why are they telling me this? Should I be concerned about my bank?"

00:31 - You've got to think of the unintended consequences of taking a 𝐩𝐮𝐛𝐥𝐢𝐜 𝐭𝐡𝐚𝐭 𝐡𝐚𝐬 𝐦𝐨𝐫𝐞 𝐟𝐮𝐥𝐥 𝐟𝐚𝐢𝐭𝐡 & 𝐜𝐨𝐧𝐟𝐢𝐝𝐞𝐧𝐜𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐛𝐚𝐧𝐤𝐢𝐧𝐠 𝐬𝐲𝐬𝐭𝐞𝐦 𝐭𝐡𝐚𝐧 𝐦𝐚𝐲𝐛𝐞 𝐩𝐞𝐨𝐩𝐥𝐞 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐫𝐨𝐨𝐦 (𝐅𝐃𝐈𝐂) 𝐝𝐨 (𝐥𝐚𝐮𝐠𝐡) - that we want them (the public) to have full faith and confidence in the banking system.

01:09 - I would be careful about the unintended consequences of starting to blast too much of this out in the general public.

01:23 - TLAC spread should respond to good and bad news about the institutions. ... 𝐈𝐭'𝐬 𝐢𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐭𝐡𝐚𝐭 𝐩𝐞𝐨𝐩𝐥𝐞 𝐮𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝 𝐭𝐡𝐞𝐲 𝐜𝐚𝐧 𝐛𝐞 𝐛𝐚𝐢𝐥𝐞𝐝-𝐢𝐧, 𝐛𝐮𝐭 𝐲𝐨𝐮 𝐝𝐨𝐧'𝐭 𝐰𝐚𝐧𝐭 𝐚 𝐡𝐮𝐠𝐞 𝐫𝐮𝐧 𝐨𝐧 𝐭𝐡𝐞 𝐢𝐧𝐬𝐭𝐢𝐭𝐮𝐭𝐢𝐨𝐧𝐬, 𝐛𝐮𝐭 𝐭𝐡𝐞𝐲'𝐫𝐞 𝐠𝐨𝐢𝐧𝐠 𝐭𝐨 𝐛𝐞.

My thoughts:

0) Again, government feels we the people are considered too ignorant to understand.

1) Get one’s funds out of financial institutions as much as possible. Credit unions are better than banks, but when a financial crisis hits, be very wary.

2) Any financial institution, that holds one’s funds in an account, has the capacity of seizing those funds to save their company from financial collapse. It may make them unpopular, but the alternative for them is financial collapse and cessation of their business activity.

Such companies are PayPal, Google Pay, Amazon, credit cards where one might have an extra balance in one’s favor, insurance companies, banks, credit unions.

3) Beware of companies that make automatic withdrawals from one’s bank account. If such a company can withdraw funds for services to be rendered, what’s to prevent them from withdrawing excessive funds for services not rendered, but to save themselves from financial ruin?

4) I suggest keeping a minimum bank balance, just enough to pay one's bills that must be paid through a bank or credit union. Keep the rest of one's money elsewhere - NOT IN A SAFE DEPOSIT BOX IN A BANK. If the bank won't give you your funds, it's likely you won't have access to your Safe Deposit Box either. Be inventive where to put one's funds.