There are actual banks which are too big to fail.
There is even an official list of them.
Read
If there was ever a time to post a disclaimer, it would be now.
Nothing you read here is a recommendation of any type. You are responsible for your money and the decisions you make with it. There will always be third-party risk with banks or any financial institution. Do your own due diligence, and decide which route is right for you.
Cool, let’s move on.
There’s a List??
In the US at least, we have been hearing of four banks which are considered safer than the others, simply because they have ordained them so.
There are actually 8, but 4 of them are for the plebs like us, unless you are accepted by Goldman Sachs, keep reading.
Why is this important?
Well why do you think it’s important? You are seeing large banks closing down at a rate we’ve never seen before.
So why do you think your bank is immune to this?
Maybe it’s because you don’t live in the US.
Are you telling me you think bank insolvency is a uniquely US problem?
Hilarious.
You’re probably just doing what you always do, and inventing reasons to not take action.
As we mentioned before on my podcast (“If Banking Crisis” episode), people flooded out of mid to small sized banks during the collapse of SVB, but there was no line out the door like there was in 2008. It was mostly online.
It was quiet.
This is why you are seeing banks you may have never seen in the news before all of a sudden fall apart.
They couldn’t function after all of the withdrawals.
Now despite how we feel about Big Banks here at No Nonsense Forex, they have become safe harbors for many, including most of you depending on where you are in the world.
I’m going to keep this US-centric for the sake of ease, but pay attention to the other banks on the list I’m about to share.
I will mention a plan of action later on in the blog, as if the plan of action I am about to describe isn’t already obvious to you.
There are two acronyms I want you to get familiar with.
And the two aforementioned lists are contained in those two links.
Note the common word in both — “System”.
What it means is if these banks go down, so does the system, and we can’t have that, so “measures will be taken” to ensure they stay afloat.
“But They’ll Just Buy My Bank Out”
Sure about that?
Absorbing and buying out banks costs money.
And they only have so much to spend here.
And also as mentioned on my podcast and on Twitter, the FDIC doesn’t have unlimited amounts of money to cover you either.
Why on Earth would you just sit on your hands based on this faulty pretense?
I have a feeling the early banks will be spared, but soon after, there may be nothing the big banks nor the FDIC can do anymore.
Then what?
Game Plan
In the US, the 4 commercial banks on the list are:
Chase
Bank of America
Citi
Wells Fargo
NFA, but I think it would be a really really good idea to either be a member of one of these banks, or become a member now before the rush, so you at least have a route to these banks.
During the last bank run, this was very hard to do. They were overwhelmed with new account openings.
Just open an account now during the lull, throw a few hundred bucks in there, and rest easier.
Always. Have. Escape routes.
I fortunately have two of them, not because I saw the writing on the wall 15 years ago, but all four are very prevalent in Las Vegas, and I wanted a full-service bank, and banks I could access in other cities should I need them.
There is a not-so-secret takeover going on in the US, in an attempt to get closer to what Canada has — A handful of strong banks that hold a monopoly on the entire system.
And for what it’s worth, TD Bank, a Canadian Bank, is also available to US citizens.
Also for what it’s worth, Citi has a very large international presence, especially in Latin America, and JP Morgan Chase does as well, as people who read this blog post already know, although this international reach is less well-known.
If a full-on crisis happens, the only life boats available might just be the biggest ones in the ocean.
Plan accordingly.
Conclusion
Most of these banks are not without issue, I know that.
Plenty of hit pieces out there, especially in regards to banks like Chase, Wells Fargo, BNP Paribas, Deutche, etc.
But there is a very important layer of extra protection with the SIFIs and G-SIBs that don’t exist anywhere else.
And remember too — Just because you bank at one of these, doesn’t mean you’re totally safe and don’t need to diversify.
These banks may have extra protection layers, but they do not have full immunity.
Did you click the links? If you clicked the links, you may have noticed one particular bank on both lists.
A bank which goes by the name “Credit Suisse”.
Don’t get caught. Diversify. Diversify within the banking system, as well as outside of it.
And do it now.
I guess we've all just grown numb to banks closing down now. Didn't take long.#gold #silver #BTC #LTC #USDT #OffshoreBanking
— No Nonsense Forex (@This_Is_VP4X) May 2, 2023
— VP