uninsured. Archives - Citizen Watch Report

94 US Banks Burdened by Uninsured Deposits – Risk of Bank Runs

September 3, 2024 11:03 pm

By Martin Armstrong A new study by Florida Atlantic University believes that 94 separate US banks are facing a significant risk of bank runs. The at risk banks have all reported a 50% or higher ratio of uninsured deposits to total deposits. Basically, they simply do not have the hard currency to shell out in …

FDIC Report Reveals Alarming $7.7 Trillion in Uninsured U.S. Bank Deposits

August 10, 2024 10:42 pm

The Federal Deposit Insurance Corporation (FDIC) has unveiled a startling figure that shows Americans are holding a colossal $7.7 trillion in uninsured deposits within their bank accounts. The agency’s data, captured at the end of March, shows the amount of unprotected deposits in US banks has been increasing for the first time since the last …

Minutes of the Federal Open Market Committee, July 25-26, 2023: “Various participants commented on risks that could affect some banks, including unrealized losses on assets resulting from rising interest rates, significant reliance on uninsured deposits, and increased funding costs.”

August 16, 2023 3:52 pm

by Dismal-Jellyfish Source: https://www.federalreserve.gov/monetarypolicy/fomcminutes20230726.htm Developments in Financial Markets and Open Market Operations: The manager turned first to a review of developments in financial markets over the intermeeting period. Market participants interpreted data releases as generally demonstrating economic resilience and a further easing of inflation pressures. The market-implied peak for the federal funds rate rose in response …

$78 billion withdrawn from commercial banks last week (7/5-7/12). $869 billion in deposits has been pulled since the all time hit 4/13/22. With the FDIC announcement today banks aren’t reporting their uninsured deposits correctly, will this re-accelerate the bank run already picking up pace again?!?

July 24, 2023 7:47 pm

by Dismal-Jellyfish I would like to review a few items this morning: Commercial deposit withdrawals Bank Term Funding Program (BTFP) making up for gaps Todays notice from FDIC banks aren’t correctly reporting the amount of deposits they have that aren’t covered by federal insurance*. \When banks incorrectly report uninsured deposits, it could create a perception …

FDIC observed some institutions incorrectly reduced the amount reported to the extent the uninsured deposits are collateralized by pledged assets; this is incorrect as the existence of collateral has no bearing on the portion of a deposit that is covered by federal deposit insurance!

July 24, 2023 10:06 am

by Dismal-Jellyfish Source: https://www.fdic.gov/news/financial-institution-letters/2023/fil23037.html The FDIC observed that some insured depository institutions (IDIs) are not reporting estimated uninsured deposits in accordance with the instructions to the Consolidated Reports of Condition and Income (Call Report). For example, some institutions incorrectly reduced the amount reported to the extent that the uninsured deposits are collateralized by pledged assets; …

Silicon Valley Bank has failed. It’s the second largest bank failure in US history. Roughly 95% of Silicon Valley Bank’s deposits were FIDC uninsured.

May 31, 2023 10:58 amMarch 10, 2023 11:36 pm

SVB works with literally like half of all US VC-backed startups, and is similarly popular for their banking services in the UK and wider Europe. If they find they’ve lost any significant portion of their funding then we’re going to see a large wave of western start-ups wiped/ significantly hobbled by SVB collapsing. $42B WITHDRAWN …