RE: Is your money safe in your bank if we have a digital hack?

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Is your money safe in your bank if we have a digital hack?

in banking •  8 years ago  (edited)

Short answer is HELL NO!!
The Dodd Frank bill nullified the FDIC by guaranteeing that the derivatives are bailed out first before any unsecured lender aka depositor is paid out.

Also I have heard that deposits are not covered if losses are due to a cyber attack.

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It's actually much worse. Dodd Frank changed the wording in the banking laws. All of us who keep money in the bank used to be referred to as insured creditors. Now we are listed as uninsured creditors as stated above. What this essentially means is if the bank gets in trouble they can take our deposits to remain solvent. You will still show the money in your account you just won't have access to it until at such time the bank is deemed "solvent" again. Remember Cyprus? That was the test run to see how people would react. Also even now if there are bank runs your not getting you money out of the bank. There is only enough printed currency to pay people 1 to 2 percent of what people have deposited. I have a relative in the banking industry who I discussed these issues with. He actually said to me "it's like this, every house in the country can't catch fire at the same time and every depositor will not want the withdraw their money at the same time". And I answered remember 1929??

  ·  8 years ago (edited)

Exactly. Bail-ins from the Banksters.