FDIC Finds Need to Market Advertisements Against Bank Runs

[AZJoe]

FDIC Finds Need to Market Advertisements Against Bank Runs

In the video, Chairman Jelena McWilliams emphasizes that hoarding cash in mattresses “didn’t pan out well for so many people.” The video is intended to discourage a bank run. ...



FDIC’s anti-bank run ad comes at a time when the Federal Reserve’s reserve requirement ratios dropped to zero in two days. On Mar. 15, the Fed announced:
“the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.” …

In this time when financial institutions are scrambling for liquidity, it’s interesting that the FDIC released an ad that discourages people from withdrawing their money. …

the FDIC has reserves to cover 2% default on deposits. …

many see the video as a sign to immediately head to the banks. ...

One pseudonymous account named ‘wash your hands’ said something very troubling. He replied that banks won’t allow him to withdraw over $3,000 of his own money. …

 

[pmbug]

When banks were failing en mass after Lehman bros, we were facing a systemic banking crisis and the FDIC was not equipped to handle it. Depositors didn't lose insured deposits, but taxpayers footed the bill for bailouts. Laws were changed since then. There won't be a bail out again if circumstances arise. Bail ins are now in play.

 

[Brian4Liberty]

Things are different than the Great Depression. We are nearly a cashless society. Only old folks runs to the bank to pull out cash.

 

[pmbug]

... Only old folks runs to the bank to pull out cash.

Covid19 hasn't killed us all yet. There are still a lot of olds left in this country.

 

[devil21]

Makes me wonder if all the stay-at-home orders are only to provide legal justification for declaring any public gathering, like a mass protest, an 'unlawful assembly'. Most bank lobbies are closed.

/tinfoil

 

[mrsat_98]

Needed in safe deposit box yesterday, Teller wanted to know if it was an emergency. I laughed and said yes.

 

[kcchiefs6465]

For most, having money in a bank is a fools errand.

FDIC is broke and many will find this out.