Home / Economy / When YOUR Bank Fails, Don’t Walk … Run!

When YOUR Bank Fails, Don’t Walk … Run!

By Brett Redmayne-Titley

So. The US economy is just fine. The post-recession 2010 Dodd-Frank legislation has marinated all. Banks have lots of cash. Congress is your crony and that certain-to-pass Tax Cut and Jobs check will finally concede you, your family and America to … MAGA.


“I’m sorry, Sir. We are incompetent to cash this check,” were the meaningful difference delivered to me by a fresh-faced, none-too-friendly, Wells Fargo Bank manager. He had just kept me watchful 10 mins while in conference about my requested transaction. Returning to his apartment he sat down quickly, now looking at me earnestly by narrowed eyes.


Three feet away, between us and in front of him, were 3 forms of my personal marker face up. However, he gazed down dark at two personal checks also laying before him, combined to me by a client and drawn on his bank. Not being a “Wells” patron we had approaching a shake-down, hence the mixed forms of ID.

These two checks totaled a clearly insignificant sum of almost US$8,000.00. Not awaiting this much problem we insisted on a reason, to which he now looked up from deliberation the two checks and replied, “I’m sorry, but the bank does not have sufficient supports on-hand to cash these checks.”


Naturally, like the infancy of wrongly indoctrinated US bank depositors we insincere that, as is normal with banks, this one would have lots and lots of cash.

Au Contraire.

Unapologetically he sensitive me that he was “sorry” but he could only cash one of the checks at this time. Both checks were for about the same amount. we inquired if this was a new bank policy and was told that the bank simply did not have adequate cash on hand, and, “no”, we could not come back at the finish of the day after the bank had perceived the day’s cash deposits. However, if we went to a incomparable Wells bend they competence be means to hoop both checks.

This rather unaccompanied news seemed estimable of delving into further, so we declined his opening offer and left with my two toilsome withdrawals. Being divided from home, we motionless to wait and stop by my home town’s categorical Wells Fargo bend office.  For anyone following the poignant and very apocalyptic condition of the world’s economy and its bank’s pretentious set of past, pending, future – and unpunished – financial crimes, my tarry into the area of Kafka would turn a very cautionary tale.

Oh, those immorality banks. The murky corporatist denizens of New York, London, and Brussels, all guilty of a towering set of ever-expanding frauds couched in the gratuitous denunciation of miserly short-term mercenary gain. Financial “crimes of the decade,” like the Savings and Loan meltdown, the Enron Collapse, and the Great Recession are today reported almost monthly. With metered US probity amounting only to a financial excellent for the offending rapist bank – customarily a tiny fragment of the income it before stole, hypothecated, leveraged or manipulated – and with rapist charge no longer a possibility, these criminals continue to trowel trillions – not billions – into off-shore, non-tax profitable accounts of the already uber-rich. There is never enough.

Just in time for Christmas, Americans perceived the “Tax Cut and Jobs Bill 2017” that, of course, contains not one word about jobs, but sounds so good to the ignorant who are still transfixed on the fake mantra of MAGA.

LIBOR, FOREX, COMEX, which used high-speed program bonds trade sum with insider manipulation, were the first critical examples of new bank frauds. Since the Great Recession magically became the Great Recovery, Wachovia and HSBC banks beg guilty to laundering income for Mexican drug cartels dictators, and terrorists. Wells Fargo and Bank of America were also guilty of defrauding tens of thousands of homeowners of the properties during the “robo-signing” scandal; that was a liaison … until Wells and BA paid the mordida and all returned to business as usual. Example: In Jul 2017 it was suggested that some-more than 800,000 business who had taken out automobile loans with Wells Fargo were charged for automobile insurance they did not need.  Barely a month later, Wells was forced to divulge that the series of fake accounts that had been combined was actually 3.5 million, a scarcely 70 percent boost over the bank’s initial estimate. Why not? When the likely outcome will be a tiny commission excellent … and keep the rest. Now that’s MAGA!

If the particular sell – Mom and Pop – financier actually had a choice of where to put their cash money, then no one with better than a fifth-grade preparation would put a penny into the major batch markets. However, the idea of the many banking manipulations have had one goal: eliminate financial investment choices to one – stocks.

One choice, bullion and silver, the before chronological champion choice in preserving one’s wealth, was deliberately separated from short-term, private investment. The banks, expelled and solitary large amounts of meaningless certificate bullion and derivative bullion (not bullion), and the same in silver, at a stream ratio of 272 paper instruments to one measly unit of genuine earthy gold. All this has been leveraged against genuine changed metals, and next used to change the cost of bullion – down – by selling outrageous tranches of these evidently meaningless bullion contracts (1 contract=100 paper ounces) within seconds when the mark cost of bullion starts to rise. The banks have finished this so mostly that bullion has not risen to levels it would likely strech but this manipulation. This has driven large liquidity that would have left to changed metals towards stocks. This is likely evidenced by the appearance of the duration arise in the cost of Bitcoin, one that – like bullion – escapes the bank’s control and a super-inflated batch market.

Similarly, interjection to the mercantile cunning that has been 3 rounds of Quantitative Easing, the other two compulsory options – the bond marketplace and personal bank resources accounts – have been manipulated to also furnish a very low rate of return, pushing these cash supports to stocks. It is this whole package of steal – providing no other place for liquidity to go – that has achieved as the tract to lift a surging universe batch marketplace to pornographic levels that have no basement in factually formed accounting or mercantile methods … or history.

Banks Are Ready for the Next Crash – You’re Not!

The banks know the next pile-up is coming. Like 2007, they have set in suit the next great(est) recession. Predator banks know that many people, interjection to the aforementioned financial control, media repudiation and an defective preparation system, are “stupid,” generally per the nuances of financial fraud. As the infancy of Americans and Europeans live in the apparition that their financial institutions will strengthen their savings, they skip their bank’s miserly preparations for the next batch marketplace pile-up slithering by the halls of their Parliament or Congress. This already finished legislation states in plain English, and the denunciation of autochthonous corruption, that your bank intends to steal your income directly from your resources account. And … your supervision will let them do this to you.

30,000 pages make up the Dodd-Frank post-recession legislation, authored by the banks in the issue of the Great Recession. The Dodd-Frank legislation was touted as expelling the large bail-outs the US gave probably every obscure too-big-to-fail worldwide bank and US house in 2008-9. In reality, Dodd-Frank was as much a rascal against Americans as LIBOR or COMEX manipulation, et al.

Title II of the media-acclaimed 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act provides the Federal Deposit Insurance Corporation (FDIC) with new powers and methods to again pledge – first and inaugural – the massively leveraged derivatives trade once this large precedence plummets as it did with AIG in 2007-09. However, that fall was singular. The next will embody all banking sectors.

The banks’ paid-for politicians finished certain a post-crash Congress did not umpire derivatives around Dodd-Frank, and thereby speedy a serve boost in this financial casino betting, despite it being the base means of the strange problem. Thanks to Dodd-Frank and its predecessor, the 2005 Bankruptcy Act, Congress finished certain these new fake bets on batch marketplace strategy would certainly be paid. But, not to worry; there would be no some-more “Bail-Outs.” Next time, these banks would use their depositors’ savings, including yours. Meet: the “Bail-In.”


All Americans remember the large “Bail-Outs” of 2007-9 and how their corporately tranquil Federal Reserve Bank and an equally tranquil US Congress threw several trillions of US taxpayer dollars at US banks, dozens of unfamiliar banks, and any house with adequate domestic lift to be tangible as “Too Big To Fail” (TBTF). In the issue a year later, the banks accepted that Americans and European adults had lost unrestrained for any future supervision Bail-Out, many preferring instead that any establishment pang self-inflicted financial compulsion should enjoy the fruits of their crimes next time, around the reality of grave failure proceedings.

The will or financial reserve of the open is, of course, no regard to rapist corporations, and so simply circumvented around Congress and the president. So, the banksters have redefined their steal using two newly tangible methods, both re-branded to be distant some-more savoury to the public.

Currently,“Too Big to Fail,” has a very fake and snob inference just like, “Bail-Out.” To millions opposite the universe who have lost their homes, grant funds, retirement plans, and dreams, this decade-old moniker for financial hardship and rascal has now been conveniently re-branded. The bailed-out TBTF banks now have a distant some-more pretentious definition: TBTFs are now, “Globally Active, Systemically Important, Financial Institutions” (G-SIFI).

This sounds so much better.

But, “Bail-Out”? No… No. Would you not prefer a “Bail-In”? Not if you know the details.“Bail-Outs,” may have also lost their season but in the new universe of the G-SIFI, the next one is actually just a “Bail-In,” away.

Yes, Bail-Ins, the new “systemically” scold term for publicly guaranteed bank rascal are already named as such in new inhabitant policies and laws, appearing in mixed countries. These financial laws, such as Dodd-Frank and its tentative UK and European Union version, make arriving Bail-Ins legal. These Bail-Ins concede unwell G-SIFI banks to legally modify the supports of “unsecured creditors” (that’s you) into bank collateral (that’s them). This includes embody “secured” creditors, like state and internal supervision funds.


With this in mind, we entered the categorical bend of Wells Fargo. The two checks in hand. On the way in we was greeted warmly, one after the other, by 3 some-more fresh-faced and fervent protégés, all smartly uniformed to compare the Wells décor, and who proffered, “Good morning, Sir!” again, and again…and again. Certainly, these little fish were not in possession of management adequate to cash my huge checks, so we asked for bigger game, the Branch Manager.

Thus, we explained my predicament to a very lovely lass who likely she, “would be blissful to help me.”

“Cheryl,” patiently explained that we had come to the right place and she would be blissful to cash both checks. Regarding my before respectful banking experience, she certified that it was indeed bank policy to have boundary on the accessibility of cash for withdrawals and that opposite branches had opposite limits. This was the categorical bend so my ask here was meritorious. Further, she certified that whatever daily cash coming into the branches in the form of deposits was not accessible for withdrawal, but was sent from the categorical bend for daily accounting at a executive indicate common to all area Wells bank branches. Only a prescribed volume of cash was supposing with any bank for daily patron cash withdrawals.


“A couple of times your stream request,” was her cautious response to my doubt about her branch’s boundary on check cashing. Not to be put-off, we asked about a suppositious US$25,000 check. She certified this would be over her branches authority. “But,” she smiled, “Today, you’ve come to the right place.”

The financial law organisation Davis Polk estimates the final length of Dodd-Frank, the singular longest check ever upheld by the US government, is over 30,000 pages. Before passage, the 6 largest banks in the US spent $29.4 million lobbying Congress in 2010 and flooded Capitol Hill with about 3,000 lobbyists before to Obama predictably signing its final unread version.  No US congressman or senator had review it. But, the banks’ congressional minions were told to opinion for it. And dutifully they did.

The major means of the arriving financial meltdown, as with the pre-2008 conditions, is globally systemic gambling against inhabitant economies; called derivatives. Derivatives are solitary as a kind of betting insurance for handling fake banking increase and risk. So, given fix systemic banking rascal when the final outcome allowed these same banks to make even some-more income in the issue of the inhabitant and personal financial drop they originated in the first recession?

Instead, interjection to Dodd-Frank, derivatives unexpected have “super-priority” standing in any bankruptcy. The Bank for International Settlements quoted global OTC derivatives at $632 trillion as of Dec 2012. Naked Capitalism states that $230 trillion in meaningless derivatives are on the books of US banks alone. Applied to Dodd-Frank this means that all these bad bank bets on derivatives will be paid off first … before you may have your resources cash. If there’s actually any cash left once you get to the teller’s counter.

Normally in a collateral murder or failure proceeding, cumulative creditors such as a banks personal depositors are paid off first given these are tough assets, not investments, and so routinely have a mandated priority. Under these new “Bail-In” Dodd-Frank mandates, your supervision has re-prioritized your bank’s bearing and your cash deposit. Derivatives and other identical banking high-risk ventures are now some-more rarely stable than bank depositors’ savings. In the 2013 instance of Cyprus, Germany and the ECB also finished depositors defective to other bank land leaving depositors with, after many months, a tiny fragment of their deposits.

And then came Greece.

Selling the distortion while using the denunciation of Dodd-Frank, we are told by media whores that banks will not be given taxpayer bailouts next time. True. The preliminary to the Dodd-Frank Act claims, “to strengthen the American taxpayer by finale bailouts.” But how, then, to Bail-In the G-SIFIs but another taxpayer Bail-Out? No problem.

Enter the FDIC and another new banking term, “cross-border bank resolution.” As the solitary US group compulsory to compensate back depositors who remove resources up to $250,000, FDIC is armed with a insignificant US$25 billion fight chest to compensate depositors. Under Dodd-Frank, the FDIC will be the resource to reinstate deposits lost or consumed by bank fraud. The public, however, has an estimated sum US cash deposits of US$7.36 trillion so, once the banks steal your savings, FDIC will be just a little bit brief of funds.  How to fix this mathematical shortfall?  With, of course, some-more of your income around emergency taxes or a large new turn of Quantitative Easing(QE). Either way, by the time this happens your income is prolonged gone. And it gets worse.


Say, “Goodbye” to your Savings – Two Greedy Methods

“It’s [FDIC] already indicated that they will allocate [savings] funds…”. – US congressman Ron Paul.

On Dec 10, 2012, a corner strategy paper was drafted by the Bank of England (BOE) in and with the Federal Deposit Insurance Corporation (FDIC) titled, “Resolving Globally Active, Systemically Important, Financial Institutions.” Here the tract to steal depositor resources is clearly laid out.

The report’s “Executive Summary” states,

… the authorities in the United States (US) and the United Kingdom (UK) have been operative together to rise fortitude strategies…These strategies have been designed to capacitate [financial institutions] to be resolved but melancholy financial fortitude and but putting open supports at risk.

Sounds good until you review the excellent print, i.e., whose risk are they actually protecting.

While claiming to strengthen taxpayers, Title II of Dodd-Frank gives the FDIC an coercion arm, the Orderly Liquidation Authority (OLA) which is identical to its British reflection the Prudent Regulation Authority (PRA). Both now have the management to retaliate the personal depositors of unwell banking institutions by arbitrarily making their resources deposits subordinate – actually tertiary – to bank claims for the deputy value their derivatives. Before Dodd-Frank resources deposits were legally comparison and primary to these same claims in a slight bankruptcy.

With the US banks holding only $7 trillion in personal cash resources deposits compared to $230 trillion is US derivative obligations, FDIC’s $25 billion will not be enough. The creators of Dodd-Frank knew this before it was signed. As John Butler points out in an Apr 4, 2012, essay in Financial Sense,

Do you see the sleight-of-hand at work here? Under the guise of safeguarding taxpayers, depositors… are to be arbitrary, subordinated… when in fact they are legally comparison to those claims…Remember, its settled purpose [Dodd-Frank] is to solve the problem… namely the existence of ruined TBTF institutions that were “highly leveraged with countless and diluted financial operations, endless off-balance-sheet activities, and ambiguous financial statements.”

Oh, but bank depositors can rest easy in the believe that replacing their resources will not come out of their pockets around another bank Bail-Out. Thanks to Dodd-Frank, the first line of invulnerability will concede Congress to instead reinstate personal resources with a supervision paid-for $7 trillion bail-in to FDIC to “replace” these savings.

But, that’s the good choice.

Worse, Dodd-Frank gives new powers to FDIC and its OLA that concede an even some-more absolute and draconian resolution: any deposited supports in a bank, from $1 to $250,000 (the FDIC limit), and all above, can instead be converted to bank stock! FDIC has supplies so this can be done, around OLA, utterly literally overnight.


An FDIC report expelled in 2012 ago reads:

An fit trail for returning the sound operations of the G-SIFI to the private zone would be supposing by exchanging or converting a sufficient volume of the unsecured debt from the strange creditors of the unsuccessful company [meaning the depositor’s cash] into equity [or stock].

Additionally, per Apr 24, 2012, IMF report, acclimatisation of bank debt to batch is an essential component of Bail-Ins enclosed in Dodd-Frank.

The grant of new collateral will come from debt acclimatisation and/or distribution of new equity, with an rejecting or poignant dilution of the pre-bail in shareholders. …Some measures competence be compulsory to revoke the risk of a ‘death spiral’ in share prices.


For influenced depositors to collect the value of what was before the depositor’s comment balance, the batch must next be sold. When Lehman Brothers failed, unsecured creditors (depositors are now unsecured creditors) got eight cents on the dollar.

This form of acclimatisation of deposits into equity already had another test-run during the failure reorder of Bankia and 4 other Spanish banks in 2013. The conditions of a Jul 2012 Memorandum of Understanding resulted in over 1 million tiny depositors apropos stockholders in Bankia when they were solitary but their permission – “preferences” (preferred stock) in sell for their blank deposits. Following the conversion, the preferences were converted into common batch creatively valued at EU 2.0 per share, then serve devalued to EU 0.1 after the Mar restructuring of Bankia.

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Canada has also settled they are formulation a identical “Bail-In” program. The Canadian supervision expelled a request patrician the Economic Action Plan 2013 which says, “the Government proposes to exercise a ‘Bail-In’ regime for systemically critical banks.”

However, don’t be getting lovable by hiding your cash, changed metals, or pass in a bank protected deposition box. There are no longer protected either. Dodd-Frank took caring of that, too.

Under Dodd-Frank the FDIC, using the auspices of Dept. of Homeland Security (DHS) can legally, but a warrant, enter the bank vault, have the manager secretly open any and/or all protected deposition boxes and inventory, or seize the contents. Further, if the manager is honest adequate to surprise the depositor of the illegal incursion, he is theme to rapist charges and stop from bank employ. Independent reports exhibit that all of America’s protected deposition boxes have already been invaded and inventoried for future confiscation.

This already happened in Greece. Depositors who private their jewelery or changed metals were met at the bank’s doorway by security, a steel detector and confiscation.


The energy of the now-remaining G-SIFI banks and FDIC was serve clear when, cash finally in hand, we headed to my bank, JP Morgan Chase, right next doorway to Wells Fargo. The manager reliable that the cash withdrawal policy at Chase was in gripping with that at Wells; very little cash accessible on demand. we posed a slight untruth and inquired as to what we should do about my arriving need for $50,000 in tough cash. No, her bank would not do that on demand, but arrangements could be finished to have the cash eliminated to her bank. That would only take “about two days.” Of course, we would need to fill out a few forms.

What a Difference a Congress Makes!

With the American and UK open again on the offshoot – by law – for the expected detriment of the banks, a unsettled depositor competence consider the tract to deceive them now complete. Au Contraire.

In its rush to send serve resources upwards to off-shore bank accounts, US boss Trump and his recently re-aligned Republican bootlickers have left no mill unturned. First, Trump expelled a chit that sets in suit his devise to scale back the supplies of Dodd-Frank and dissolution the Fiduciary Rule.

It should be remarkable that the only voice of mercantile reason at the White House, Former Fed Chairman, Paul Volker, divorced himself from this flourishing liaison of simple arithmetic very publicly. As conduct of Obama’s recession-inspired, President’s Economic Recovery Advisory Board, Volker ran into the headwinds of mercantile stupidity for too long, resigning in Jan of 2011 in disgust. His depart so coincided with the renovation of the litany of rapist financial strategy already discussed here. And now…

The House authorized legislation on Feb. 2, 2017, to erase a series of core financial regulations put in place by the 2010 Dodd-Frank Act, as Republicans changed a step closer to delivering on their promises to eliminate manners that they explain have strangled tiny businesses and stagnated the economy. Said Trump,

I have so many people, friends of mine, with good businesses, they can’t steal money, given the banks just won’t let them steal given of the manners and regulations and Dodd-Frank.

Poor banks.

Never mind, of course, that these bad banks are holding derivative bearing thirty-five times the sum cash deposits of US savers … nor that their ill-gotten cache – such as the UBS, Wells Fargo, Bank of America, RBS multi-billion dollar frauds – were taken off-calendar in Federal justice for approximately 15% of the sum crime. The banks kept the rest.

And they wish more?!

“We design to be slicing a lot out of Dodd-Frank,” Trump pronounced serve defining the mantra of MAGA. This will likely see the decrease of the newly combined Financial Stability Oversight Council (FSOC) and the Consumer Financial Protection Bureau (CFPB) given these agencies quell serve extreme risk-taking and the existence of too-big-to-fail institutions on Wall Street.

Well, depositors, your extreme counsel is required. The diction of these new, bank-inspired sets of legislation is silently watchful to be used by many nations to prioritize banks before their citizens. When the time comes, the race to the bank will be a ephemeral eventuality indeed.

With this in mind, we stepped into the splendid fever outward the walls of JP Morgan/Chase bank, all but $100.00 of my day’s take pressed low – and firmly – in my pocket. Its final outcome no one’s business but my own.

However, for almost everybody else? Well … when YOUR bank fails, don’t walk – run!  YOU do not wish to be second in line.



About the Author: Brett Redmayne-Titley has published over 150 in-depth articles over the past 7 years for news agencies worldwide. Many have been translated. On-scene stating from critical stream events has been an importance that has led to multi-part exposes on such topics as the Trans Pacific Partnership negotiations, NATO summit, KXL Pipeline, Porter Ranch Methane blow-out and many more. He can be reached at: live-on-scene((at)) gmx.com.

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