Shuttered With Plywood
Nattering's from A Margin Of Leveraged Reserve:
"This probably sounds vaguely familiar to anyone who lived through the 1930's and very bizarre to the Yuppie generation, but...
When this is all said and done, due to an inability to cover deposits and/or reserve & margin call requirements...
perhaps even the doors and ATM at your local bank will be shuttered with plywood. Go ahead and laugh, its happened before and could happen again.
The only difference is this time, due to the amount of systemic leverage, it could happen much swifter and be far worse than anyone imagines or expects."
And I'll bet this didn't show up on your evening news... From the Pittsburgh Post Gazette: A lifetime of saving evaporates with bank's collapse.
77 year old Raymond Przybilinski socked away $521,000 from a lifetime of hard work.
On Feb. 2 state banking regulators seized Metropolitan Savings Bank in Lawrenceville, citing "unsafe and unsound" operations.
When Mr. Przybilinski tried to take his money out, the man in charge of Metropolitan Savings' assets informed him that there was only $200,000 left to withdraw -- the amount protected by the federal government's FDIC.
A letter from the Federal Deposit Insurance Corp. later confirmed Mr. Przybilinski's status as a creditor for the remaining $321,573.47.
Across the country, there have been 29 bank failures since October 2000. In 1930, 2,294 banks around the country closed, including 522 in one month.
Anyone still laughing? Checked on your accounts lately? FDIC info on the Metropolitan Bank failure.
"This probably sounds vaguely familiar to anyone who lived through the 1930's and very bizarre to the Yuppie generation, but...
When this is all said and done, due to an inability to cover deposits and/or reserve & margin call requirements...
perhaps even the doors and ATM at your local bank will be shuttered with plywood. Go ahead and laugh, its happened before and could happen again.
The only difference is this time, due to the amount of systemic leverage, it could happen much swifter and be far worse than anyone imagines or expects."
And I'll bet this didn't show up on your evening news... From the Pittsburgh Post Gazette: A lifetime of saving evaporates with bank's collapse.
77 year old Raymond Przybilinski socked away $521,000 from a lifetime of hard work.
On Feb. 2 state banking regulators seized Metropolitan Savings Bank in Lawrenceville, citing "unsafe and unsound" operations.
When Mr. Przybilinski tried to take his money out, the man in charge of Metropolitan Savings' assets informed him that there was only $200,000 left to withdraw -- the amount protected by the federal government's FDIC.
A letter from the Federal Deposit Insurance Corp. later confirmed Mr. Przybilinski's status as a creditor for the remaining $321,573.47.
Across the country, there have been 29 bank failures since October 2000. In 1930, 2,294 banks around the country closed, including 522 in one month.
Anyone still laughing? Checked on your accounts lately? FDIC info on the Metropolitan Bank failure.
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