What Happened To Me After I Switched Banks

too-big-to-fail-bank

I just wanted to let you know an interesting (coincidental?) thing that happened to me recently as I made a major transfer from one particular bank to deposit into a new (different) bank.

I don’t much believe in coincidences (there’s often a reason) and in this case I have little doubt it was coincidental…


 
Having procrastinated long enough, I had finally researched and opened a new bank account with a smaller and more local bank so as to liquidate from another bank which so happens to be one of the ’empty shell’ banks (too big to fail). Although I also belong to a credit union (which I highly recommend to help diversify and to help insulate from some of the potential systemic risks of a traditional bank), I chose to have some of my ‘money’ located closer to home rather than sitting somewhere in a Mega-corporation which is highly levered and massively exposed to derivatives.

Side Note: I also highly recommend that you be your own banker. Keep a substantial amount of cash (whatever that means for you) in a Safe at home. While we need to keep a ‘bank’ account in order to reasonably function in today’s modern world, you’re not earning any real interest there – and apparently new banking rules have changed your deposit money to ‘unsecured debt’ – and might be subject to a ‘bail-in’ during the next financial crisis.

Back to the story: I stopped at my new local bank branch to make my first significant deposit (withdrawal from the TBTF bank). They indicated the transaction would be quick (e.g. today’s world of electronic banking transactions are ‘light speed’, except for bank policy ‘hold’ times). Well, not 30 minutes later I was checking out at a nearby Home Depot with my debit card from the TBTF bank, and what do you know — the debit card was declined!

I paid by another means, and upon getting home I logged into the TBTF bank and discovered that they put a block on transactions and I had to call them up…

Upon calling them, they said they needed to verify a few purchases. The thing is – all of them were entirely normal, and common (e.g. Amazon, a local ‘big box’ store, etc..). Nothing was suspicious whatsoever. No doubt the real reason they shut me down (albeit temporarily) was because I’ve liquidated nearly all of it to another bank. Although they did not say that…

Anyway, I’ve been reading more and more articles lately about how banks are making it difficult to withdraw your own cash, and especially if it’s more than ‘just’ a few hundred bucks or your ATM limit. While truly it has become an electronic digit world of so called money, the flip side is that cash has become demonized in the process.

So that’s all I wanted to say – it just seemed interesting.
I wonder if others have had issues with their banks lately?

 
UPDATE: One week later – they shut me off again! Tried to make a debit card purchase at the battery dealer while adding several more batteries for my off-grid system, and the card was declined. Absolutely amazing. I called them up again, and this guy went back and forth with some other department – and confirmed the decline due to apparent suspicious behavior (he couldn’t really explain how or why or what they consider as a threshold). The thing is, I have purchased from this place several times before – all without issue. All of this has suddenly happened since I decided to withdraw the bulk of the money from their bank. The lesson here is that even though it’s your money – THEY have a firm grip on the spigot and can cut you off in an instant…

 
I’m sure glad that I’m now finally mostly out of that too-big-to-fail bank, and I feel better going ‘local’ — even though they’re all part of the same overall system. However some banks are MUCH more exposed to derivatives failure than others – namely the top 6 too-big-to-fail-banks.

 

Too Big To Fail Bank Derivatives Exposure

 
JPMorgan Chase
Total Assets: $2.6 trillion
Total Exposure To Derivatives: $63 trillion

 
Citibank
Total Assets: $1.8 trillion
Total Exposure To Derivatives: $60 trillion

 
Goldman Sachs
Total Assets: $856 billion
Total Exposure To Derivatives: $57 trillion

 
Bank Of America
Total Assets: $2 trillion
Total Exposure To Derivatives: $54 trillion

 
Morgan Stanley
Total Assets: $801 billion
Total Exposure To Derivatives: $38 trillion

 
Wells Fargo
Total Assets: $1.7 trillion
Total Exposure To Derivatives: $5 trillion

 
source: occ.gov

117 Comments


Click here to vote for MSB -Top Prepper Website

  1. kynase August 30, 2015
  2. JPD August 30, 2015
    • Ken Jorgustin August 30, 2015
      • Jon August 30, 2015
        • laura m. August 31, 2015
    • one of two stories August 30, 2015
      • second of two stories August 30, 2015
        • Pa-cman August 31, 2015
      • restoring September 5, 2015
    • Northern Boy August 31, 2015
  3. No joke August 30, 2015
    • Ken Jorgustin August 30, 2015
      • Thox Spuddy August 30, 2015
        • Beach'n September 5, 2015
      • I have heard August 30, 2015
        • restoring September 5, 2015
      • 21Bravo August 30, 2015
      • Andy August 30, 2015
    • be careful August 31, 2015
    • Your kidding September 3, 2015
  4. Thox Spuddy August 30, 2015
    • NRP August 30, 2015
      • CPA prepper August 31, 2015
  5. kynase August 30, 2015
    • being watched August 31, 2015
  6. Ken Jorgustin August 30, 2015
  7. Anonymous August 30, 2015
    • Ken Jorgustin August 30, 2015
  8. Helmet August 30, 2015
    • Ken Jorgustin August 30, 2015
    • Jack M August 31, 2015
  9. Lynn August 30, 2015
    • BCtruck September 2, 2015
  10. Big Dubya August 30, 2015
    • Jack M August 31, 2015
  11. Steelheart August 30, 2015
    • Peanut Gallery August 30, 2015
      • dumbfounded August 31, 2015
        • poorman September 2, 2015
    • restoring September 5, 2015
  12. Beach'n August 30, 2015
    • DaisyK August 31, 2015
      • being watched August 31, 2015
      • Beach'n August 31, 2015
        • DaisyK August 31, 2015
          • Good Thnking August 31, 2015
          • Anonymous September 3, 2015
          • Beach'n September 3, 2015
          • Lauren November 19, 2015
  13. Wendy August 30, 2015
    • Jack M August 31, 2015
  14. Steve godwin August 30, 2015
    • Jack M August 31, 2015
    • Megalon August 31, 2015
  15. NRP August 30, 2015
    • DaisyK August 31, 2015
  16. Thox Spuddy August 30, 2015
  17. FloridaRoberto August 30, 2015
    • Ken Jorgustin August 30, 2015
      • Beach'n August 30, 2015
        • Roddy Piper August 30, 2015
          • retnavybrat August 31, 2015
        • Jack M August 31, 2015
        • TPSnodgrass August 31, 2015
      • I have heard August 30, 2015
      • Peanut Gallery August 30, 2015
      • JJ August 31, 2015
    • CPA prepper August 31, 2015
    • Anubis September 2, 2015
    • Wendy September 4, 2015
  18. 97who August 30, 2015
  19. cr August 30, 2015
    • Jack M August 31, 2015
  20. 21Bravo August 30, 2015
  21. cr August 30, 2015
  22. patriot August 30, 2015
  23. confused and in the dark August 30, 2015
  24. sandshreder August 31, 2015
  25. Thor August 31, 2015
    • Thor August 31, 2015
  26. M August 31, 2015
    • Lauren November 19, 2015
  27. Steve godwin August 31, 2015
    • Anonymous August 31, 2015
  28. Steve godwin August 31, 2015
  29. Steve godwin August 31, 2015
    • be careful August 31, 2015
  30. Steve godwin August 31, 2015
    • Tiny August 31, 2015
  31. Steve godwin August 31, 2015
  32. Steve godwin August 31, 2015
  33. Living the Dream August 31, 2015
  34. Jo August 31, 2015
    • Ken Jorgustin August 31, 2015
  35. A Patriot August 31, 2015
  36. JJ August 31, 2015
  37. JJ August 31, 2015
  38. JJ August 31, 2015
    • Ken Jorgustin August 31, 2015
  39. tango August 31, 2015
  40. Limit transactions August 31, 2015
  41. SouthernAZ August 31, 2015
  42. Stardust August 31, 2015
  43. Thox Spuddy August 31, 2015
  44. me. September 1, 2015
  45. R.L. September 3, 2015
  46. Big River September 3, 2015
  47. 2drachmas September 3, 2015
  48. Ken Jorgustin September 4, 2015
    • Thox Spuddy September 4, 2015
    • NRP September 4, 2015
    • Anon September 4, 2015
  49. Thox Spuddy September 4, 2015
  50. Thox Spuddy September 4, 2015
  51. anony September 4, 2015
  52. Dave September 6, 2015
Click here to vote for MSB -Top Prepper Website

Visit our TERMS OF USE & Comment Policy

For off-topic discussion, visit the latest:
'Weekly Preparedness' post

For the most recent comments from all articles:
'Recent Comments' page

Leave a Reply

Email optional - will not be published
Do NOT follow this link or you will be banned from the site!