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The FDIC Insurance was raised from $100,000 to $250,000 in this last crisis in the USA. Sorry old habit. I should also state, that the major banking crisis is in Europe – NOT the USA. However, the crisis we will face is created by the REPO market to some degree and wild trading Money Center banks. You can move your money to a local regional bank, but this may still not protect you if the wild and crazy NY trading banks blow up as they have always done for each crisis.

In the good old days BEFORE 1985, banks had to get your permission to sell your funds overnight into REPO. They still must get that client approval in London – but not USA. Legally they should disclose that fact, but this is the part of the real legal status of a bank account. You deposit what you think is your money. However, legally you simply now become an UNSECURED creditor the same as a common share holder. It ain’t your money any more ! That’s why they created FDIC to start with. This is why lawyers look at this structure and skip over the FDIC problem and say hell – we are not legally obligated to bail out depositors of bankers. This is the collapse in Socialism – it is all the promises that they cannot possibly keep.

It is YOUR BURDEN to investigate the bank and what type of business they derive their profits from. Those that derive profits from trading – walk away while you still can. My recommendation to banks who want to attract business – guarantee to depositors that you will not sell their funds overnight into REPO without their written consent. Very simple. Do that, and I will become a depositor. Then the risk is their loan portfolio not the Russian Roulette market who has the money tonight.