What does the FDIC do when your bank fails? (2009) | 60 Minutes Archive

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  • Опубликовано: 25 ноя 2024

Комментарии • 1,2 тыс.

  • @bubbaclark4355
    @bubbaclark4355 Год назад +122

    You heard it yourself that large financial institutions should not exist. History does repeat it self.

    • @pangkaji
      @pangkaji Год назад +5

      14 years after she said that the large banks still exists. The lessons the big banks learned was if they were too big to fail, then get even bigger

    • @Sparta1993
      @Sparta1993 Год назад

      More dangerous to have small banks, they easily fall.

    • @jjg1501
      @jjg1501 Год назад +1

      @@Sparta1993 i disagree. small banks would not take these stupid risks large banks fail. they would only take risks that made good sense.

    • @no_country_for_real_men
      @no_country_for_real_men Год назад

      Yes that's because people are impervious to change so history repeats itself

    • @Gattberserk
      @Gattberserk Год назад +1

      @@no_country_for_real_men it been way overdue and people are getting complacent that no recession will ever happen. I can tell from all the meme coins and stock investor when they keep MOON MOON and to the MOON.

  • @angeladeem2988
    @angeladeem2988 Год назад +910

    The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?

    • @dianarabbanii2
      @dianarabbanii2 Год назад

      @Naomi Gonzales It's impressive, but given how poorly my portfolio is now performing, I truly need their assistance. Please tell me how I may get in touch with her.

    • @vizisolutions
      @vizisolutions Год назад

      Pull out and move to Thailand

    • @dougjunior1961
      @dougjunior1961 Год назад

      ​@Scott Juarez 😅😅

  • @JuanWayTrips
    @JuanWayTrips Год назад +296

    This was a great and timely piece. I knew about the FDIC but did not know how it worked. The former chairwoman made a great point that we shouldn't let banks grow too big. Their job is just to clean up the mess when the end is near, so they can't do as much about that. But maybe we are starting to make the same mistakes of 2008.

    • @ladedalounge
      @ladedalounge Год назад +4

      I was like a deer in head lights in 2008 and I was part of an FBI Investigation due to auction rate securities. First Tile company in USA.

    • @RoseSSlots
      @RoseSSlots Год назад +2

      People in the industry have been saying this........ I use to work for. Credit Union. People are surprised when smaller bank/credit unions don't have the same protection as big banks......

    • @Sparta1993
      @Sparta1993 Год назад

      It’s propaganda so the low IQ don’t lose their minds

    • @josephtafur
      @josephtafur Год назад +5

      ​@JG Trump has been out of office for 3 years, how was this his fault.

    • @PedroRodriguez-hy5ty
      @PedroRodriguez-hy5ty Год назад +4

      Yeah clean up the money they stole

  • @stevensmiddlemass2072
    @stevensmiddlemass2072 Год назад +582

    Wonderful insight. Banks couldn’t just offload the long term bonds like that. They were on the books as “held to maturity”. If they’d moved them to “available for sale” they would have taken a massive write-down on the value of the bonds. With the 2008 financial crisis, which led to the decline of several money market funds below $1, brokerage companies began to acquire banks.I have pulled out more than $340k from my bank. After all, the FDIC covers only up to $250,000, and the implosion could have bad effect. Looking to invest into the stock market now.

    • @mehmedduric
      @mehmedduric Год назад +1

      @Bobby Blue all that is fine, except, your financial advisor is clueless about what will happen next. That’s why none of them ever predict recession and majority is constantly beaten by index fund 😊

    • @jgalvan09
      @jgalvan09 Год назад

      where all crypto haters now lol

  • @carolynmorris7303
    @carolynmorris7303 Год назад +130

    The people that went through the depression would sit outside the bank all day. Must have been a pretty traumatic experience, the Great depression. Losing everything

    • @henrycalhoun5809
      @henrycalhoun5809 Год назад +13

      I heard many stories of several country banks in South Alabama closing up during the 1930s and keeping the depositors money. Many farmers lost every cent they had in the banks.

    • @WhateverIwannaupload
      @WhateverIwannaupload Год назад +10

      look up the "suicide bridge" found in california. It is told that during the great depression many people jumped to their death because they lost everything. SIIICK! i mean, theres faster ways but jumping to your death is not only brutal but crazy... btw im scared of heights jaja.

    • @veramae4098
      @veramae4098 Год назад +1

      There had been depressions and booms, up and down, for decades. The the Great Depression hit. When the situation was stabilized President FDR put regulatory rules in place to continue on.
      Then Bush the Younger took them off, and we got 2008 Great Recession. (Really a "normal" depression.) Legislators put controls back on.
      Trump took them off.
      Tell me again, which political party is the party of financial responsibility?

    • @jsmythib
      @jsmythib Год назад

      Much neater now. They can steal the value of money while you hold it.

  • @ardeand
    @ardeand Год назад +312

    Rich people pay politicians to make sure they get access to taxpayer funds first when banks shutter or they're in jeopardy of losing all their money. I feel bad for the lowest paid workers that may be affected, but not CEO's. A lot of them have created this abusive corporate pay structure where they are paid 300 to 400 percent the salary of entry level workers. Most add very little value. They posture and perform with speeches, meetings, and excessive travel to provide the appearance of working hard. It's a con.

    • @andreasleonard0
      @andreasleonard0 Год назад

      @@shawcohbam Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.

    • @ellamezo
      @ellamezo Год назад +1

      @@andreasleonard0 wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio, I am so done with banks!

    • @andreasleonard0
      @andreasleonard0 Год назад

      @@ellamezo Isabel Linda Dueri” is my advisor, you can easily look her up, she has years of financial market experience.

    • @Isaacmeide
      @Isaacmeide Год назад

      @@andreasleonard0 Finally people are getting to recognize the brilliance of this lady

    • @ellamezo
      @ellamezo Год назад

      @@andreasleonard0 Thanks, I merely looked her up on Google and was highly impressed by her credentials; I got in touch with her because I need all the help I can get. I just set up a phone call.

  • @hera7884
    @hera7884 Год назад +73

    If we the people have to suffer, politicians should as well.

  • @revolutionaryprepper4076
    @revolutionaryprepper4076 Год назад +149

    The FDIC insures that all depositors will have their money, up to $250,000. The lesson here is this : Don't have more than $250,000 in any one bank. That way, if the bank fails, you won't lose any money!

    • @germanshepherd6638
      @germanshepherd6638 Год назад +10

      My $10 million….noooo!

    • @Speedy5310
      @Speedy5310 Год назад +17

      Easy to do for most inidividuals, but much harder to do for a business. With an operating budget of $300k/mo, you need to have a couple million at one location. So this is more of a question of what should business do with their money? It's scary when you hear everyone say no that you should move to one of the Top 4 banks. Ok fine but that would just make them bigger and perpetuate the problem with 'too big to fail '🤷‍♂

    • @matthewwoodward8581
      @matthewwoodward8581 Год назад +18

      Someone doesn’t listen to the details…it’s per account not per bank.

    • @Speedy5310
      @Speedy5310 Год назад +1

      @@matthewwoodward8581 good point. However, if I need to make payroll and the bank goes insolvent, then having capital at another bank is the best safeguard

    • @samduong8889
      @samduong8889 Год назад +7

      ​@@brokeduece1691 there is always a bidder to bid on banks with financial's issue, because its an extremely good deal for the bidder. Therefore, your debt ll carry on to a new lender. Nothing to worry about 😆

  • @zacherymayer4847
    @zacherymayer4847 Год назад +225

    Who's here after the Silicon Valley bank failed

    • @dtxgmoney
      @dtxgmoney Год назад +32

      This was posted 2 hours ago 😂

    • @MrOC13
      @MrOC13 Год назад +5

      Here after Signature Bank

    • @AR-ed3xw
      @AR-ed3xw Год назад +4

      Literally not even you! You, me and everyone else are here cause it was just posted and popped up!

    • @Brucelee89896
      @Brucelee89896 Год назад +1

      This was just popping out in my feed

    • @eliu868
      @eliu868 Год назад +7

      Given that this was posted because of the recent bank failures...everyone.

  • @TheReallyBigForest
    @TheReallyBigForest Год назад +49

    This reminds us that we haven't learned from our mistakes

    • @joevignolor4u949
      @joevignolor4u949 Год назад +7

      Some people did learn from their mistakes. What they learned was that you can make lots of big mistakes and get away with it and be even richer afterwards. Then you can go and do it again.

    • @3825cmac
      @3825cmac Год назад +2

      I think you’re confusing ‘not learning’ with ‘not caring’. This is how Inflationary capitalism works and that big club that you and I aren’t part of ,aka the 1 percent, are pulling the strings. And you and I are the ones who bail em out during recessions after peak inflation is too high for average peasants (like you and I) to be able to afford general commodities with ease. So we pay for it, get drained, go into debt while that club shorts the market to acquire even more wealth than the last bull cycle. But you can buy Defi crypto assets today to set yourself up for the future if your smart. Class dismissed.

    • @auntiem873
      @auntiem873 Год назад

      Actually is does prove we have learned from our mistakes.
      That’s why the FDIC was created.
      So a run on the bank would not happen again.
      The people who have their money in the bank just don’t understand how FDIC works.
      Once they did, they were happy to leave their money there.

    • @veramae4098
      @veramae4098 Год назад

      The REPUBLICANS haven't learned from their mistakes.

    • @shiiidozer-wl6tp
      @shiiidozer-wl6tp Год назад

      There's a reason a certain group of people have been kicked out of 109 different countries over 1030 times.

  • @davidlemmon4603
    @davidlemmon4603 Год назад +203

    This was a reassuring video and very timely... FDIC gets my respect for their professionalism

    • @missym5196
      @missym5196 Год назад +16

      The FDIC only has approximately 800 billion dollars to cover bank deposits and savings. Americans $$ in banks for FDIC to cover approximately 5 Trillion dollars. Banks will fail and money gone! Watch

    • @ryangreen3332
      @ryangreen3332 Год назад

      ​@Blue Prada lol

    • @detraed8962
      @detraed8962 Год назад

      I know right they are awesome.

    • @-TheOracle-
      @-TheOracle- Год назад

      @@missym5196 only smaller banks will disappear. This will happen rather rapidly. Small businesses banking with small banks will hurt. Then again how to catch laundering small businesses without controlling their cash flow. MUHAHAHA! Illicit drug laundering small banks and businesses be warned.

    • @Sparta1993
      @Sparta1993 Год назад

      Bootlicker

  • @Mike-kc5ew
    @Mike-kc5ew Год назад +36

    I think a good question here is that since the FDIC raised the federally insured limit on accounts to $250,000 in 2008, and since 2008 we've seen total inflation to be around 40%, should that limit be raised? At some point, $250,000 (per account) is not as great of a safeguard as it once was.

    • @greendog8424
      @greendog8424 Год назад

      Don't matter since wages haven't inflated

    • @joesterling4299
      @joesterling4299 Год назад +6

      Yes, but as their handling of SVB so far shows, that limit is there as a backstop for complete runaway conditions. Looks like they are covering all deposits there, even though most are over $250K (since it's a bank popular with tech startups). I'm saying that, as long as they can, I think they will make everyone whole. If it gets too far out of hand, then they may fall back on the $250K limit per depositor per bank. I do agree the limit should be indexed to inflation somehow. I remember very well when it was $100K.

    • @Erin-rg3dw
      @Erin-rg3dw Год назад +2

      It probably should be raised, at least on some sort of schedule. It's also good practice to not keep all of your money in one bank, hence why it's per depositor, not per account.

    • @lucysmith4242
      @lucysmith4242 Год назад

      It's ok since we're poorer now. So we're less likely to use all 250,000$

    • @hewhohasnoidentity4377
      @hewhohasnoidentity4377 Год назад

      Raising the insured limit doesn't happen in a vacuum. The FDIC charges all of the insured banks a premium just like you pay a premium for car insurance. If the insured limit goes up, so does the premium. The banks pass the cost of the premium to customers in the form of banking fees. Raising the insured limit will benefit only those who have balances over the current limit. The cost of that benefit would be paid by every customer of any insured bank in the country.
      It also needs to be said that the difference between the taxpayers paying the insurance cost and the banks is a minor technicality. FDIC covers all state and federally chartered banks. This includes pass through coverage on prepaid debit cards and the Fintech accounts that are not banks. The only real way to avoid paying into the FDIC system is by exclusively doing your finances at a credit union. They operate under a separate system. But, if you have a credit card, mortgage, car loan, student loan or any kind of financial product outside of a credit union, you are involved in the FDIC system one way or another.

  • @vicmarc4984
    @vicmarc4984 Год назад +54

    No one is bailing out home owners. No one gets bailouts, no one.

    • @j887276
      @j887276 Год назад +1

      EXACTLY why if you are a homeowner, you NEED to withdraw all your money. That way you can still make your mortgage payments and utilities.

    • @doright8355
      @doright8355 Год назад

      Why does the homeowner need a bail-out? In the long run, housing will always go up in value.
      Take the last housing bubble. It drops by almost 30% and 3 years after it up by 10%. The ones that want a short sale or need a bail-out are mostly the investor. They hope to do a house flip for a fast profit. Also, the ones that can't afford it want the most expensive home.

    • @Secretary.of.Education
      @Secretary.of.Education Год назад +3

      Because helping working class Americans is socialism

    • @jayedatredes2890
      @jayedatredes2890 Год назад +1

      Except the banks, of course.

    • @jayedatredes2890
      @jayedatredes2890 Год назад +1

      ​@@Secretary.of.Education Bingo!

  • @mcginnnavraj4201
    @mcginnnavraj4201 Год назад +812

    With all this scary news making the headlines, is this really a good time to buy stocks? I know everyone says the market is ripe enough for buying but will stocks tank further this year? How long until a full stock recovery?

    • @tampabayrodeo2474
      @tampabayrodeo2474 Год назад +1

      It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro

    • @zoeytank2921
      @zoeytank2921 Год назад

      @Finest Bear Hug we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help?

    • @tampabayrodeo2474
      @tampabayrodeo2474 Год назад

      @Finest Bear Hug I'm literally holding onto straws right now, so your tip couldn't have come at a better moment! I plan to call her after doing a quick internet search for her.

    • @zoeytank2921
      @zoeytank2921 Год назад +1

      Maria Juliana Ramirez appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.

    • @Gattberserk
      @Gattberserk Год назад

      All inversion in yield curve lead to recession, this does not change for almost 100 years.
      And when recession happen, the gradient will steepen and almost drop like a cliff. So just wait for that and re invest. A interesting note, a crash happen during a surge in unemployment.

  • @Raymondjohn2
    @Raymondjohn2 Год назад +1074

    I'm really worried about the current bank crisis. If a bank as big as SVB could fail, I fear for a lot more. I know a friend who is running a high-growth startup, and was badly hit by the bank run. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to$250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?

    • @martingiavarini
      @martingiavarini Год назад +4

      Since the crash, I've been in the red. I’m playing the long term game, so I'm not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really look to know how to go about this.
      .

    • @lipglosskitten2610
      @lipglosskitten2610 Год назад +5

      There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor.

    • @hermanramos7092
      @hermanramos7092 Год назад +3

      Thats true, I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.

    • @martingiavarini
      @martingiavarini Год назад +3

      @@hermanramos7092 Impressive can you share more info?

    • @hermanramos7092
      @hermanramos7092 Год назад +5

      @@martingiavarini My advisor is ‘’Christine Jane Mclean’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

  • @tien7742
    @tien7742 Год назад +35

    Thank you for a well-informed of how FDIC actually worked, which reminded me that the banking industry is no different from any other's business sectors of buying and selling businesses..The big one got backed up by government officials and remains in business whereas small ones are being wiped out slowly creating the monopoly of banker's who wouldn't only control our lives via 💰💰 but also via government's leaderships officials for making rules & regulations that are favorable to themselves since those government's leaderships officials are also the shareholders of these mega-banks..Period..

  • @jaxjaxvang4910
    @jaxjaxvang4910 Год назад +3

    I never know how the FDIC works until now! Wow! Great finding! Thanks 60 minutes🙏💜

  • @edwardbrennan7140
    @edwardbrennan7140 Год назад +110

    Timely repeat of 2009.

    • @tonil.476
      @tonil.476 Год назад +2

      Yep

    • @davidb3271
      @davidb3271 Год назад +2

      Not to mention they just re-released this literally a few weeks ago

    • @blakebortles6098
      @blakebortles6098 Год назад +1

      Worst then 1929

    • @lorendsalazar
      @lorendsalazar Год назад

      Oh that's right, I had forgotten , , ,
      60 Minutes used to do good journalism.
      .

    • @Umm-mg3pb
      @Umm-mg3pb Год назад +5

      They pulled this out of the archive on purpose

  • @stoundingresults
    @stoundingresults Год назад +50

    Damn good documentary. Needs to go Viral. Back when 60 minutes was credible.

    • @makedredd299
      @makedredd299 Год назад

      They are still credible, no?
      They are just old and slow like Joe Biden.

    • @RusskiCommieBot
      @RusskiCommieBot Год назад

      60 minutes was never credible.

    • @wisho-ro4305
      @wisho-ro4305 Год назад +1

      ​@@RusskiCommieBot let me guess Russian bot, one America news is credible right? 🤦

  • @LeeBreece
    @LeeBreece Год назад +22

    its nearly 15 years later and the insured limit is still the same, regardless of whether its a personal or business account. Insured deposits should be up to 1 million for personal accounts and 5 million for business customers.

    • @mecthegreat92
      @mecthegreat92 Год назад +9

      Who's going to pay for the insurance?

    • @lloydfeng5716
      @lloydfeng5716 Год назад +4

      It doesn't make sense for there to be a limit at all. Deposits in other countries are simply backed by the national government in full.

    • @mecthegreat92
      @mecthegreat92 Год назад +1

      @@lloydfeng5716 that only works if you nationalize the banks.

    • @16nowhereman
      @16nowhereman Год назад +3

      Yes, you are absolutely right. That $250k is antiquated and should now be at least $500k.

    • @lucysmith4242
      @lucysmith4242 Год назад

      Bro who in the world has that money sitting in a bank

  • @lesliekloer8544
    @lesliekloer8544 Год назад +20

    The guy that went in with a empty briefcase and left with a empty briefcase is all I need to know!

    • @16nowhereman
      @16nowhereman Год назад +4

      Either way, he would probably have come out of the bank with some of his money but not a lot. Banks don't have millions of dollars on hand for people. That is a bad strategy to have in banks. Money is symbolic and banks don't literally have cash like people think. Most of its money is invested.

    • @16nowhereman
      @16nowhereman Год назад

      @@maxsands3861 Sometimes banks won't allow people to withdraw large amounts of cash for your protection. Why would you need to withdraw so much money? Most transactions are done electronically which is safer than carrying cash around. The other way around is also true. Why would people make large cash deposits? That is very suspicious when you make several large cash deposits, especially when you are not a business owner.

    • @travelingdude1621
      @travelingdude1621 Год назад

      😅😅😅

  • @moniquemoore1270
    @moniquemoore1270 Год назад +8

    I was a Washington Mutual Employee during this time....its was exactly like they are saying after work.. it was a Wrap...the wildest thing I ever witnessed...before the pandemic

  • @carolynmorris7303
    @carolynmorris7303 Год назад +14

    It was amazing to see all these old people lined up outside, at around the banks. Worried if the bank failed, they would be the first ones there to get their money.

    • @dtxgmoney
      @dtxgmoney Год назад +3

      Meanwhile I'm online wiring my money out 😂😂😂

    • @16nowhereman
      @16nowhereman Год назад

      Banks don't really have cash on hand ready to "give" to people when they ask for it. That is not the way banks work.

  • @tradekings5433
    @tradekings5433 Год назад +143

    I blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).

    • @Robertgriffinne
      @Robertgriffinne Год назад +1

      please how can i find the lady you mentioned'?

    • @aigajenkinson2495
      @aigajenkinson2495 Год назад +1

      Corinne really seem to know her stuff. I found her website, read through her resume, educational background, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I booked a session with her

    • @mixi2090
      @mixi2090 Год назад

      At 10:42 K0cK$ucker say its OK that banks fail because while their making bad investments or cooking the books they give themselves big bonuses and salaries. When it comes to crunch time they sell their shares or they get bailed out. They couple of months later they pay themselves bonuses for getting out of the mess they created. They pay them selves bonuses with money borrowed from future generations.

    • @davefellhoelter1343
      @davefellhoelter1343 Год назад

      "Blame?" the FED Planed this! part of New World Order!

    • @veramae4098
      @veramae4098 Год назад +1

      Troll.

  • @willdazey7368
    @willdazey7368 Год назад +9

    Money only works because we all believe it works. That professionalism is the most critical piece and I applaud them for it! I, like everyone else, want to wake up tomorrow and still be able to purchase groceries.

  • @abgzulkifli
    @abgzulkifli 4 месяца назад +1

    I said this 10 years ago, they didn't respect it

  • @detraed8962
    @detraed8962 Год назад +10

    Ty 60 mins. This was good stuff! I HAD watched this before the banks started to fail so I knew how it worked! Very informative!

  • @thankswillie
    @thankswillie Год назад +16

    reinforced my confidence in the USA here in 2023

  • @leondarnell1
    @leondarnell1 Год назад +20

    This is really, really good. I thought the money came directly from us, the taxpayer. Sheila Bair did a great job explaining this.

    • @johnnyjet3.1412
      @johnnyjet3.1412 Год назад +6

      FDIC gets the money from the banks, who get it from you - it is a tax, just not by the gov't.

    • @WHSmith-zk2ox
      @WHSmith-zk2ox Год назад +1

      Boy do they have you fooled...... Where do you think the money comes from? Thin air or something? Perhaps the tooth fairy? Sheesh.........

    • @makayladonald-saleem8605
      @makayladonald-saleem8605 Год назад

      @@WHSmith-zk2ox could you have been any more patronizing? Sheesh...

    • @WHSmith-zk2ox
      @WHSmith-zk2ox Год назад

      @@makayladonald-saleem8605 Could you be any more biased, even when the facts of the matters steps up and slaps the taste out your mouth? Holy Sheesh.........

    • @makayladonald-saleem8605
      @makayladonald-saleem8605 Год назад

      @@WHSmith-zk2ox biased? how did you get that from what I said?

  • @larrbaII
    @larrbaII Год назад +8

    My grandma told me "Never put your eggs in one basket" . Im 53 now and i wounder how history will repeat itself, just in a different way.

    • @shiiidozer-wl6tp
      @shiiidozer-wl6tp Год назад

      Problem is all the baskets are Jewish.

    • @larrbaII
      @larrbaII Год назад

      @@shiiidozer-wl6tp And all this time i thought it was politicians.

    • @shiiidozer-wl6tp
      @shiiidozer-wl6tp Год назад

      @@larrbaII I recommend everyone watch Europa The Last Battle and fact check as you go.

  • @yolandagailes2393
    @yolandagailes2393 Год назад +18

    Thanks for educating 🤗 me more on how FDIC gets involved. I knew of FDIC but never had a detailed understanding of their processes which gives me greater respect for all who help make it a success. However, I'm still concerned although the funds come from insurance that FDIC has. With rates and increases when does the insurance say enough is enough and drop, stop, or become unavailable to cover so many financial institutions. When that happens, the FDIC has to depend back on the Federal Government to LOAN them money 💰 to assist these failing Banks to cover the consumers funds in their accounts.
    Honestly, I feel like the FDIC is doing a good deed but it circles back around to Treasuries printing more money to help FDIC bail out failing Banks/Financial Institutions. I smell another collapse like the 90's and 2008 but worse. 🤯

    • @situated4
      @situated4 Год назад +1

      Thank you FDIC for helping us when the pathologically greedy continue to fail us.

    • @joevignolor4u949
      @joevignolor4u949 Год назад +3

      The FDIC is an insurance company. Compare it to an auto insurance company. If every so often one or two drivers total their cars its no problem. But if lots of drivers all total their cars at once then it becomes a really big problem.

    • @samduong8889
      @samduong8889 Год назад

      ​@@joevignolor4u949 nope, the Fed is also backing up FDIC if it really ask for a bail out. Normally, you shouldn't put money in a smaller banks to begin with. Why? It gives you higher interest yield, but more risk. Its why big banks only give you a very tiny biny bit of interest's yield annually. Its good that we have FDIC in the US for a certain amount of guarantee. At Asia, if the banks run, no one ll really know anything until your life saving is gone lol.

    • @grandmasterciphersupreme7751
      @grandmasterciphersupreme7751 Год назад

      You will soon see this money liked and burning in the streets. The rich will light their cigars with $1,000 and $10,000 bills because it has no value no more. The Rothschild's controls the Federal Reserve. The same people Jesus of 2,000 years ago drive out of the Temple. The dirty, wicked money changers that you got your faith in in Jesus name whom Jesus was enemies with. Smh.

    • @AdamsScott-oz7gd
      @AdamsScott-oz7gd Год назад

      Hey Yolanda, good morning

  • @shawnthegreat4281
    @shawnthegreat4281 Год назад +12

    I do agree it's a good thing for a LIMITED amount of banks to fail. Just like running a business some businesses will fail and balance the market in benefit of the customer. However none of this works without regulations and regulation enforcement. We live in a free market economy and people will take risks and lose money that is part of the game. But if you are just trying to have a banking account and mortgage you shouldn't lose your home or money because other people were greedy or made bad decisions.

  • @xevious2501
    @xevious2501 Год назад +7

    Whats so amazing about this video is how it applies itself today. things that we simply dont know that happens behind the scenes. It also brings some insight to answering some of the questions and speculaions as to whats going on when a banks staff are all of a sudden are switched out with all new people. That could very well be signs of the stability of a bank or its branches failing.

  • @Flowerhead247
    @Flowerhead247 Год назад +1

    Well this answered A LOT of questions! THANK YOU Scott Pelley and THANK YOU 60 MINUTES‼

  • @brooklynboi11207
    @brooklynboi11207 Год назад +2

    I bet most people didn’t notice this is from 2009

  • @jeanpark4420
    @jeanpark4420 Год назад +1

    There are WAY too many banks in this country that shouldn’t exist in the first place. Need tighter rules to establish a bank in the first place.

  • @h.d.h
    @h.d.h Год назад +19

    We should start jailing banking executives who break the law 😁

  • @Torch2mua1
    @Torch2mua1 Год назад +1

    Can’t imagine being a bank manager and seeing the FDIC come in like the Grim Reaper

  • @brownguyonyoutube
    @brownguyonyoutube Год назад +3

    Why did this scare me more than the confidence it was supposed to give me?

  • @PhilipMurray251
    @PhilipMurray251 Год назад +97

    I still blame the FEDs for this, because in the end they benefit by either buying off the failed banks cheaper or something. The fed can print credit as long as someone will borrow it into existence, but they cannot print product (or production).

    • @Robertgriffinne
      @Robertgriffinne Год назад +3

      Every day we have a new problem. It's the new normal. At first we thought it was a crisis, now we know it's a new normal and we have to adapt. this year will be a year of severe economic pain all over the nation.. what steps can we take to generate more income during quantitative adjustment?I can't afford my hard-earned $180,000 savings to turn to dust

    • @Alejandracamacho357
      @Alejandracamacho357 Год назад +2

      The idea of financial adviser aid may seem controversial to some, but according to a recent Investopedia survey, demand for financial advisors has increased by over 41.8% since the pandemic, and based on personal experience, I can say with certainty that their skill sets are top-notch. From a sluggish $385K that lacked growth stocks, I raised almost $500k in 18 months.

    • @corneliajennins5714
      @corneliajennins5714 Год назад

      @@Alejandracamacho357 please leave the info of the F/A guiding you

    • @Alejandracamacho357
      @Alejandracamacho357 Год назад +5

      @@corneliajennins5714 Having an investment advisor is the best way to go. Based on a direct encounter with a CFP named Corinne Cecilia Heaney, I can say with certainty that their skills are excellent. She helped raise almost $500,000 in 18 months from an initially stagnant portfolio of $380,000.

    • @Robertgriffinne
      @Robertgriffinne Год назад +1

      @@Alejandracamacho357 Corinne really seem to know her stuff. I found her website, read through her resume, educational background, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I booked a session with her

  • @luciboras
    @luciboras Год назад +4

    When there is no competition, there is monopoly. When there is monopoly it is never benefit consumers. No bank should grow so big that it burdened the tax payers. If businesses or banks trade internationally, why should only American tax payers bail them out?

    • @MIGGYTV84
      @MIGGYTV84 Год назад

      Your statement highlights the potential negative consequences of monopolies and large banks that become too big to fail. The burden of bailing out such institutions often falls on taxpayers, even when those institutions do business internationally. This raises questions about the fairness and equity of such bailouts.

  • @sergiofausto48
    @sergiofausto48 Год назад +5

    It’s not taxpayer money? All government money is taxpayer money.

  • @memebro3181
    @memebro3181 Год назад +6

    "Is it tax money?"
    True answer : Yes
    BS answer : No

    • @chrisb7161
      @chrisb7161 Год назад

      How is it tax money? It works the same way your car insurance works, you crash your car your insurance pays you the value of the car. Your insurance got the money from everyone paying them a premium on their insurance. Banks pay the FDIC to insure them. There are banks that are not FDIC insured.

  • @testos2701
    @testos2701 Год назад +6

    The little guy always get shafted! 😅🤣😂 While the big to fail guy gets a handout!

    • @manujohn99
      @manujohn99 Год назад +2

      Isn't it why FDIC is operated so that the little guy will get his saved money???

  • @DarcvexiS
    @DarcvexiS Год назад +5

    Well...criminals tend to do things in secret too. 🤣

  • @boodle4960
    @boodle4960 Год назад +2

    Get out of debt. Diversify ur accounts. Prepare for the worst. Live like there’s no tomorrow on whatever’s leftover

  • @singloc3021
    @singloc3021 Год назад +3

    The CEO of MB Financial should scare you with his response. He wants banks (in this case, small banks) to fail so they can be larger. Remember, too big to fail? As our world see more and more consolidation of everything, we'll have less and less competition. Now, we are told we must bail them out!

  • @RADIUMGLASS
    @RADIUMGLASS Год назад +2

    People don't understand that the insurance is 'per depositor' not per account. So if you have a million dollars spread out among five accounts you get insured for 1.

  • @vc8230
    @vc8230 Год назад +14

    History always repeats itself, whether it is good or bad, one way or the other.

    • @shiiidozer-wl6tp
      @shiiidozer-wl6tp Год назад

      That's because the people that have been kicked out of 109 different countries over 1030 times for this same crap refuse to change their ways.

  • @samroxeva
    @samroxeva Год назад +1

    I would say that this video DOES NOT help fears to prevent a run on the bank

  • @SmartMoneyBro
    @SmartMoneyBro Год назад +8

    Great explanation of what happens. An auction and a larger buyer is always the best route!!

    • @joevignolor4u949
      @joevignolor4u949 Год назад

      Except that once all the big banks buy up all the small ones you end up with monopolies. Then a small number of big banks can do anything they want, like charging overdraft fees of $100 per overdraft and charging 35% interest on credit cards.

    • @situated4
      @situated4 Год назад +1

      But, and I don't disagree, that just makes larger and larger single banking institutions that become too big to fail like they were talking about at the end of this piece. It's a no-win in the end.

  • @chrisgoetsch1964
    @chrisgoetsch1964 Год назад +2

    Someone saying they want people to think they're the good guys is the one phrase spoken by THE BAD GUYS

  • @carolynmorris7303
    @carolynmorris7303 Год назад +4

    I remember back in the 1980s when I lived in Cicero Illinois, the old people would sit outside the the banks worried, that I would happen again.

  • @Melissa0774
    @Melissa0774 Год назад +2

    That hotel conference room looks like it'd be a really easy place to ease drop.

  • @rubedogg6969
    @rubedogg6969 Год назад +6

    Throw those crooks in jail!

  • @DrinkElectrolytes
    @DrinkElectrolytes Год назад +1

    6:02 "No, it is not tax payer money" LOL!! Right, the 800 Billion that went to AIG and the the major banks had NOTHING to do with the FDIC's reserves staying in tact.

  • @kayfarquar2034
    @kayfarquar2034 Год назад +3

    I'm glad banks are being watched so closely!

  • @rememberberries4277
    @rememberberries4277 Год назад +1

    Dont listen to the financial guru bots.
    If you contact them deserve to lose your money

  • @HDHQDIRECT
    @HDHQDIRECT Год назад +4

    He says it will produce a much healthier banking system...here we are in 2023, and it's only showed it got bigger failures not healthier.

  • @lilkingsamuel
    @lilkingsamuel Год назад +1

    The guy with the briefcase though. 😆🤣😂

  • @michaelswami
    @michaelswami Год назад +10

    Everyone remain calm. We’ll be OK. This is fundamentally a sound and expanding nation. I am grateful for the FDIC.

  • @asdfbill8020
    @asdfbill8020 Год назад +1

    The FDIC isn't necessarily your friend. This is an insurance corporation. Insurance corporations settle with people in general. People believe their deposits are insured up to $250,000 which is true but if a whole buttload of banks fail the FDIC will give a percentage of your deposits. You won't be necessarily covered dollar for dollar but be compensated cents on the dollar.
    Investment in a bank is not insured if their bank fails.
    Another blow is most banks only allow you to withdraw a set amount of your money. This is written into your terms you signed. You will discover you can't withdraw all your money in one lump sum.
    This video IMHO is posted to quell anxiety and stop bank runs..right toward the end of this video he mentions 80% which I believe is only wishful thinking. It could be tiered or set but 80% is high..it would be more like a 25% settlement.

  • @edfud_
    @edfud_ Год назад +3

    The idea of "getting rid of the weak players" is something I dont necesarilly agree with. I feel like it gets rid of the competition for most of these bigger banks that have all of the money and backing.

    • @mepulley7913
      @mepulley7913 Год назад

      That's all it is. Any new bank that tries to compete with any big bank has a short life span.

  • @sincerelyjerry244
    @sincerelyjerry244 Год назад +1

    She is one of the "Good Duys", Cheers to you, sister!

  • @cmath6454
    @cmath6454 Год назад +38

    It's interesting to me how attached to money people are. Watching FDIC operates, they calmly and seamlessly transition every part of their operation to such a covert degree you realize how much money just triggers people's primal panic sense, no matter the amount.

    • @J-wm4ss
      @J-wm4ss Год назад +8

      it's even more insane how quickly the gov works about banks. a bank shut down, auctioned, and opened under new management in less than 3 days. i just wish government was that effective at everything.

    • @karlabritfeld7104
      @karlabritfeld7104 Год назад +4

      Do we have a choice???? We live under capitalism.

    • @JoannaPolisena
      @JoannaPolisena Год назад +7

      Money = food, shelter, safety.

    • @monikaw1369
      @monikaw1369 Год назад

      @@karlabritfeld7104 Where you have choice……instead living where they tell you.

    • @WHSmith-zk2ox
      @WHSmith-zk2ox Год назад +1

      If and when this happens to you, I am fairly sure you will go into "panic" mode as well, so I would advise you to wake up and quit trying to be the pot calling the kettle black...

  • @lesliehatun2044
    @lesliehatun2044 Год назад +2

    When people have millions of dollars, and the FDIC Insures up to 250K where do you place all your money without having to use multiple banks?

    • @aaliyahjackson9734
      @aaliyahjackson9734 Год назад +3

      Oversees or in investments that aren’t taxed. Just a guess

  • @Corpvet
    @Corpvet Год назад +14

    Imagine if the better business bureau worked like this. Imagine if FDA worked like this. Imagine if agencies meant to help the people actually helped THE PEOPLE.

    • @smiziley
      @smiziley Год назад +2

      Better Business Bureau is a private entity, it isn't a government agency.

    • @shiiidozer-wl6tp
      @shiiidozer-wl6tp Год назад

      @@smiziley As is the Federal Reserve.

  • @mattdelany6799
    @mattdelany6799 Год назад +1

    Fidelity’s money market is insured up to 1,000,000. Dollars. It pays 4.47 percent. Your bank account pays .0000125 percent.

  • @MFG333
    @MFG333 Год назад +3

    What do they do when a bank fails? Notify their friends the day before so they can sell off their stocks. None of our government agencies can be trusted anymore.

  • @JesterMaxxedtotheMax
    @JesterMaxxedtotheMax Год назад +1

    I'm from the government and I'm here to help - the most dangerous words you will ever hear.

  • @valiant7357
    @valiant7357 Год назад +4

    Sounds like the perfect heist... could be a movie

  • @DaveTan65
    @DaveTan65 Год назад +1

    Its the same owners. Nuff said.

  • @marcmckenzie5110
    @marcmckenzie5110 Год назад +5

    Great overview, but one of my concerns following the Silicon Valley Bank failure is that the FDIC insurance limits to not index with inflation. In 1980 the limits were raised to $100,000 per account, and in 2011 again to $250,000. That amount, using US Treasury inflation rates is worth roughly $338,500. Seems obvious that this should have an inflationary or COLA increase every year. Who’s driving this ship?

    • @sevensages5279
      @sevensages5279 Год назад

      The issue is that banks pay for FDIC insurance, so they would pass any increase on to the customers. Is should be noted that joint accounts are insured up to $500k.

  • @tonyfrattaroli7371
    @tonyfrattaroli7371 Год назад +2

    97% of the money in SVB was over $250k and uninsured. They still got their money back, paid by the us taxpayers!

  • @RADIUMGLASS
    @RADIUMGLASS Год назад +3

    Taxpayers have to bail out the big banks and the CEOs walk away with millions in salaries and bonuses.

  • @ruthdanielson919
    @ruthdanielson919 Год назад +1

    The lady looked super nervous, guarded not wanting to say much. Just curious about credit unions, if the NCUA, operates as seamlessly as the FDIC. The whole situation frightening.

  • @PedroRodriguez-hy5ty
    @PedroRodriguez-hy5ty Год назад +14

    I wonder how much money they stole before they close the bank

  • @Maliceless100
    @Maliceless100 Год назад +2

    Laws still incentivize bank execs to gamble with customer funds (for shareholders, bonuses, etc.), because they can't lose. We need new legislation regulating the way banks invest capital. The FDIC is wonderful and important, but their existence almost facilitates the malpractice of banks like Silicone Valley Bank. Regulation is a crucial component of capitalism.

  • @Nottherebutthere
    @Nottherebutthere Год назад +3

    20 years of manipulation by Fed has been disastrous for me as a whole.

  • @sharongillesp
    @sharongillesp Год назад +1

    People end up being taxed INDIRECTLY through less community services such as social security/Medicare/unemployment and other institutions by providing less & less but paying more; higher loan rates; higher costs for education; wages get frozen; sick day’s & vacations eliminated; infrastructure-ignored and reduced, and less employment for fire departments, police officers, ambulances, etc.
    THAT’S HOW OUR MONEY IS TAXED indirectly.

  • @ttzzaa
    @ttzzaa Год назад +9

    10:54 This is all part of the plan.

    • @alexlopez5800
      @alexlopez5800 Год назад +2

      That's the problem. 😂 They already did and are focused on taking each other out at this point

  • @Landroverdude101
    @Landroverdude101 Год назад +1

    I'm the son of a farmer in Iowa. In 1988 the FDIC made the decision to close our bank. The farming occupation was not a very viable one at that time. FDIC insured bank deposits at $100k. We knew of only a handful of people that had over that amount in the bank at that time... Over 50yrs. of banking/lending relationships were lost that day... Found out 10 yrs. later that the decision to close that bank was based off of "projection" and that some of the agents never even had this bank "on the radar"... We survived but I know that there were others forced out of their livelihood.. Look at farming now-a-days....

  • @cahivx
    @cahivx Год назад +4

    Thank God, I used to be worried about wild rampant crime. Now I’m just worried about a bunch of fiat paper.

  • @christinah.8504
    @christinah.8504 Год назад +1

    the more wealthy you become, the less compassionate you are to the poor.

  • @PedroRodriguez-hy5ty
    @PedroRodriguez-hy5ty Год назад +5

    Don't deposit money in the banks no more

  • @Stackzz12
    @Stackzz12 Год назад +1

    Ironically Heritage Bank was targeting the poor communities… You only seen this Bank in impoverished communities… Sad that even the employees live in Poverty most of the time…

  • @michaelboguski4743
    @michaelboguski4743 Год назад +3

    The FDIC insured limit was $125K before the 2008 Financial Crisis; they had to double it then.

    • @mrparkerdan
      @mrparkerdan Год назад

      I remember that it was only $100K

  • @Stranger_In_The_Alps
    @Stranger_In_The_Alps Год назад +14

    American public: please forgive student debt
    US government: best I can do is bail out oligarchs

  • @sparky09100
    @sparky09100 Год назад +1

    childrens books, wow this is the job requirements

  • @jimas9775
    @jimas9775 Год назад +4

    My my my…even the CEO seemed like he was not believing his own BS…. 🤦‍♂️

  • @Wowimhungry9
    @Wowimhungry9 Год назад +2

    Teller” You just coming back to see us”
    Me” You just keep on making risky bets”

  • @gailjames6489
    @gailjames6489 Год назад +3

    Wow, I had no idea of the process. Thank you for explaining especially when I wasn't to sure how Washington Mutual didn't make it and now I know why.

  • @tominmtnvw
    @tominmtnvw Год назад +1

    You mean if, not when.

  • @clemmonswest262
    @clemmonswest262 Год назад +6

    I’m glad FDIC exists

  • @Michael-yl2iq
    @Michael-yl2iq Год назад +5

    What they shouldn't do is cover deposits over $250,000.

    • @MrSuperJaskirat
      @MrSuperJaskirat Год назад

      Why????

    • @Michael-yl2iq
      @Michael-yl2iq Год назад +2

      @@MrSuperJaskirat It has been reported that over 95% of the depositors had over $250,000 in the bank. $250,000 is the max amount insured. If you say that the deposit is completely covered, no matter what, you have encouraged higher risk financial investment with no down side.

    • @MrSuperJaskirat
      @MrSuperJaskirat Год назад +2

      @@Michael-yl2iq im surprised people have deposited that much money considering I keep hearing how Americans are living paycheck to paycheck...

    • @Michael-yl2iq
      @Michael-yl2iq Год назад +2

      @@MrSuperJaskirat Those are not just people, those are rich high tech investors and business owners. Biden only makes it sound like he is helping the common citizen living paycheck to paycheck.

    • @Ericaaaaaaaaaa
      @Ericaaaaaaaaaa Год назад

      ​@@MrSuperJaskirat because the FDIC only promised to insure $250,000. Those who had more than that in the bank were taking a known risk.

  • @3825cmac
    @3825cmac Год назад +1

    10:37 “What do you mean it’s ok?” 😂😂😂😂😂

    • @3825cmac
      @3825cmac Год назад

      And what this clown failed to mention is how the monopolization of big bank takeover will require tax payer dollars in the events of inevitable failures. This irresponsible money printing is not sustainable. I’ve been saying this for years. The future will be decentralized Finance. Traditional banking will essentially be reserved and intact to act as a custodian to the wealthy and antiquated Charlie Mungers of the world. The 1 percent. The rest of the world will see an unprecedented inflow begin to get allocated into Defi. And the crumbs and indicators are all there if you’re paying attention and have a brain. Don’t believe what your government and schools teach you. Rewire your brain for gods sake and see the forest for the trees. And you can begin locking up and slowly allocating a little money that your comfortable with moving into Defi right now.. Today.. On a very low market cap that can set you up in unimaginable ways in the future. Don’t be chasing like cattle and sheep when the bell rings and it becomes too abundantly obvious like the mass inflow into Facebook and social media some 15 years ago. Remember people laughing about that future? 😂

    • @jaystew730
      @jaystew730 Год назад

      He gives off Chris Hansen vibes 😂

  • @josephtafur
    @josephtafur Год назад +3

    Nice Timing, CBS

  • @taba3369
    @taba3369 Год назад +1

    Bring the Gold Standard Back

  • @tomtompkins6779
    @tomtompkins6779 Год назад +3

    Seems a better option to put all the safeguards back in place so that the banks don't"get into trouble". There is no reason to let the banks gamble with people's money. If this is n't the definition of a Ponzi scheme I don't know what is.

  • @ClementRusso2
    @ClementRusso2 Год назад

    The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this ongoing bank crisis.

    • @VickyAlvy
      @VickyAlvy Год назад

      Following the 2008 financial crisis, I've become cautious about placing trust in corporations. Since 2020, I've opted for the guidance of a financial advisor in my investments and have experienced no significant losses. As a result, I am not inclined to return to exclusively relying on banks.

    • @AlexanderDanielley
      @AlexanderDanielley Год назад

      People often overlook that banks are yield-driven institutions. I choose not to keep substantial sums in a bank but instead opt to engage with supervision, enjoy the benefits, and save for retirement.