Are You Prepared For A U.S. Bank Bail-In?


If you have cash in a U.S. bank, you can expect to have the Federal government take it all the next time U.S. banks find themselves in trouble.

The days of the Federal government’s stealing money from taxpayers or borrowing it from the Federal Reserve to save troubled banks — as in it did in the 2008 crisis — may be over. Congress is considering imitating the theft in Cyprus and letting troubled banks “bail in” depositor money in order to make themselves solvent.

Jim Sinclair, chairman and CEO of Tanzania Royalty Exploration Corp., and whose family started Goldman Sachs, Salomon Brothers, Lehman Brothers, and others, has been warning of this for a while:

Bail-ins are coming to North America without any doubt, and will be remembered as the “Great Leveling,” of the “Great Flushing.” Not only can it happen here, but it will happen here… It stands on legal grounds by legal precedent both (sic) in the U.S., Canada and the UK.”

Financial expert Michael Snyder said: “When major banks fail, they are going to bail them out by grabbing the money that is in your bank accounts. This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the Western world.”

This news isn’t exactly new, but the story is still developing. The monetary system is much closer to collapse, and the bail-in is imminent. In fact, U.S. banks presented the Federal Reserve with a bail-in plan to pay for large banks’ restructuring in the event of a future crisis, The Wall Street Journal reports. The plan was presented to the Federal Reserve in an attempt to preempt tougher rules from the regulators.

The private meeting was reportedly attended by officials from Wells Fargo & Company, Bank of America Corp., Citigroup Inc. and several other banks. The bail-in mechanism would be designed to place a greater burden on creditors, as opposed to the taxpayers (theft victims), in the event of a bank’s collapse. In addition to the fleecing of depositors in Cyprus, the burden keeping a bank afloat was put on bondholders already this year when the U.K.’s Co-operative bank unveiled a rescue package that forced the bank’s bondholders to take a  £1.5 billion hit to plug the  £1.5 billion hole in the bank’s balance sheet.

The proposal presented to Federal Reserve officials would involve the largest financial services holding companies holding a certain amount of debt and equity, which would be used to prop up any failed bank subsidiary seized by regulators. But the regulators will likely stick to their own plan, which involves more aggressive measures, including capping bank size, breaking up institutions or forcing banks to take on more long-term debt.

In the end, however, it’s not just creditors who will be on the hook but depositors as well. Sinclair pointed out that banks legally own depositors’ funds as soon as the depositors hand those funds over to the banks. The money becomes the banks’, and the “depositors” actually become unsecured creditors holding promises to pay. Previously, the banks were obligated to pay back this loan on demand with cash. Under the new Federal Deposit Insurance Company – Bank of England (FDIC-BOE) plan revealed this year, however, these promises to pay become equity in the bank, which won’t be able to be used as payments for bills, which is why most people have money in the bank in the first place.

The point is that your money is not yours while it is “deposited” with a bank. And bail-ins are coming to shatter any illusion that it is for U.S. depositors. Notice that banks are already setting up deposits for seizure. Despite the excuses of the likes of JPMorgan, the banks are indeed clamping down on outgoing international wire transfers and now putting in limits for withdrawal. If you don’t get your money out now, possibly by end of this year or sooner, you may not be able ever to get it out. Once doors are closed, the Federal government might do a bank holiday and bail in to make the banks “solvent” again. At best, you may get some “bank equity” that is both illiquid and which will ultimately be worth a tiny fraction of the deposit it replaces.

And when the Fair and Accurate Credit Transactions Act (FACTA) comes into effect in July, it will be nearly impossible for an American to get a bank account outside the United States. (It already is, but it will be even worse.) Now is the time to get your assets in an offshore account and The Dollar Vigilante can help. Click here to learn more about how with TDV Offshore.

–Jeff Berwick

Personal Liberty

Jeff Berwick

Anarcho-Capitalist. Libertarian. Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business.

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  • bjeanfreau7

    BITCOIN is my answer! Any questions?

    • Jersey_Prophet

      obama says: “Bitcoin is declared illegal by my Executive Order. My NSA will sniff out all Bitcoin transactions and put you in jail.”

      Then what?

      • vicki

        Then we arrest obama for exercising powers way outside his authority. (or we accept open tyranny)

        • Jersey_Prophet

          Who arrests him – Eric Holder? C’mon! the deck is stacked and there will be no arrests. Crime in this regime does not get punished. It gets rewarded with promotions!

          One has to recognize…only in a lawful society are laws sacrosanct. Long ago this regime abandoned the law. Probably around the time obama gave his 1st State of the Union. We have a soft tyranny already. You just haven’t come to terms with this fact, Vicki. You will understand soon. Sadly, it’s too late for anyone to do anything about it.

      • bjeanfreau7

        Who gives a flying frick about Obama?

      • bjeanfreau7

        It has already been determined that less than 2% of Bitcoin transactions occur in the US. The US government is powerless to stop Bitcoin outside the US. Bitcoin is going to increase in value as everyone else learns what “money” really is! Whether over the next 2 weeks of Senate hearings or over the next 2-3 years of economic collapse of the US!

  • Chris

    Well, won’t taking our money out of the banks “help” them to fail?

    • Vis Fac

      Who cares/ They have been stealing YOUR money with high fees while getting rich off the interest they charge using YOUR money. Apparently you like being taken advantage of.

      I have advocated for years that no one keeps ANYTHING in any bank only what is necessary for when (not if) the banks fail anything inside their walls belongs to them even what is in THEIR safety deposit boxes.

      I have traded my worthless script for “tangible” assets that I can use or trade for necessary items.

      To sit back hoping that someday, some way, someone will make things right is to go on feeding the wolf hoping he will eat you last – but eat you he will.

      You don’t have to be a Marine to make a difference the only requirement is being truly patriotic and the willingness to back it up!!!

      Libertas inaestimabilis res est

  • wandamurline

    It would seem that tin cans buried on your place may have to be the answer…our forefathers did this after the collapse because they no longer trusted the banks. They did not trust the banks, so Woodrow Wilson and the thiefs of the banking industry named the national bank the Federal Reserve and they have been stealing Americans money through print and spend since 1913.

    • Vis Fac

      FYI the “Federal Reserve Bank” is neither Federal or a bank
      It is another liberal moniker affixed to a scam operation. Originally the Federal Reserve was supposed to be the central bank of the United States. It was supposedly created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system.

      However the Federal Reserve is a PRIVATE concern and “Loans” money to the Government. Forget the fact that the US Treasury (a federal entity) prints this money then hands it over to the “Federal Reserve” who charges interest on the money it holds and lends to the government . Quite a racket right? Franklin Delano Roosevelt, Woodrow Wilson, Carter Glass and Paul Warburg along with crony capitalists like JP Morgan J.D Rockefeller grabbing a piece of the action.

      These new generation of crony capitalists run the nation issuing orders to ODUMBO the media and those in congress.

      To sit back hoping that someday, some way, someone will make things right is to go on feeding the wolf hoping he will eat you last – but eat you he will.

      You don’t have to be a Marine to make a difference the only requirement is being truly patriotic and the willingness to back it up!!!

      Libertas inaestimabilis res est

  • hungry4food

    These links make the case that a Fed Bailout is coming and
    it will come through stock sales and the collapse of the Dow Jones .

    They are creating the
    crisis with Debt accumulation instead of supply expansion and accumulation

    The Fed has no endgame

    MSN Money’s Mirhaydari: Fed Must Act Fast to Prevent
    Deflation Disaster

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