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Thread: US Fed Reserve Bank Gov. Tarullo, regulators must counter bank runs.

  1. #1
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    US Fed Reserve Bank Gov. Tarullo, regulators must counter bank runs.

    "Global regulators need more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday. "

    http://www.cnbc.com/id/101222045

    Deposit it and lose it. I see EU banks considering negative deposit rates to keep value in the market (churn and earn). Just as the media would have it, limping from crisis to crisis. The mattress is going to be the safest place and with a zero rate (better'n negative).
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    "Global regulators need more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday. "
    Translation: "We need more ways to prevent people from getting back their own money when we screw up with it."

    As far back as the early-mid 1800's in this country, the judicial branch ruled that deposits are not owned by the depositor.

    And, banks are allowed to have a "bank holiday" (temporary closure) when too many depositors demand their money back. Meaning, instead of the bank going out of business like any other business, they are protected by government. And, the principal owners of the bank are not personally liable to cover the depositors.


    See the Minority Report of the Reagan Gold Commission for the history mentioned above.

    You can bet that if a bank was at risk of folding up without government protection, and its principals were personally liable to cover depositors, suddenly every bank in the country would become very reliable and very stable.
    Last edited by Citizen; 11-23-2013 at 08:40 AM.
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  3. #3
    Regular Member Black_water's Avatar
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    Quote Originally Posted by Citizen View Post
    Translation: "We need more ways to prevent people from getting back their own money when we screw up with it."

    As far back as the early-mid 1800's in this country, the judicial branch ruled that deposits are not owned by the depositor.

    And, banks are allowed to have a "bank holiday" (temporary closure) when too many depositors demand their money back. Meaning, instead of the bank going out of business like any other business, they are protected by government. And, the principal owners of the bank are not personally liable to cover the depositors.


    See the Minority Report of the Reagan Gold Commission for the history mentioned above.

    You can bet that if a bank was at risk of folding up without government protection, and its principals were personally liable to cover depositors, suddenly every bank in the country would become very reliable and very stable.
    True, but this will never happen because we have allowed so many strong man arguments with regard to banking that removing them would just cause too many problems. Imagine actually loaning money based on someone's ability to pay it back rather than on a perceived case of racism etc.

    Not going to happen. This thing needs to break all the way before they do anything and I can just imagine what they are going to do.

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