Sat Mar 23, 2024 11:33 pm by globalturbo
Mystery: $114 billion withdrawn from banks
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than $114 billion has been withdrawn from the nation’s biggest banks in
the first full week of January, and industry analysts are struggling to
understand why.
The Federal Reserve’s
latest figures indicate the largest one-week withdrawal amounts from
U.S. banks since Sept. 11, 2001, terrorist attacks. The $114 billion
represents 2 percent of the nation’s 25 biggest banks’ coffers.
One guess as to what’s going on: The Transaction Account Guarantee
program, a government action aimed at protecting the solvency of smaller
banks, ended on Dec. 31. TAG was a 2008 government creation that
offered smaller banks unlimited insurance on money in certain accounts.
The program’s end was expected to bring more withdrawals — but the
smaller banks only lost .9 percent of their deposits.
Another guess: The Feds’ records are “wacky,” one analyst muses, in various media reports.
Read more: http://www.washingtontimes.com/news/2013/jan/24/mystery-114-billion-withdrawn-banks/#ixzz2JXsYoJ4j
Follow us: @washtimes on Twitter
Thanks to: http://2012indyinfo.com
Rate This
More
than $114 billion has been withdrawn from the nation’s biggest banks in
the first full week of January, and industry analysts are struggling to
understand why.
The Federal Reserve’s
latest figures indicate the largest one-week withdrawal amounts from
U.S. banks since Sept. 11, 2001, terrorist attacks. The $114 billion
represents 2 percent of the nation’s 25 biggest banks’ coffers.
One guess as to what’s going on: The Transaction Account Guarantee
program, a government action aimed at protecting the solvency of smaller
banks, ended on Dec. 31. TAG was a 2008 government creation that
offered smaller banks unlimited insurance on money in certain accounts.
The program’s end was expected to bring more withdrawals — but the
smaller banks only lost .9 percent of their deposits.
Another guess: The Feds’ records are “wacky,” one analyst muses, in various media reports.
Read more: http://www.washingtontimes.com/news/2013/jan/24/mystery-114-billion-withdrawn-banks/#ixzz2JXsYoJ4j
Follow us: @washtimes on Twitter
Thanks to: http://2012indyinfo.com
