What banks do you consider safe from collapsing?

Question

The news is saying some bank managers are doing some crazy stuff at the banks with the money. What say you?

WindAtMyBack · Accepted Answer

In the US, I think they are all safe if they are insured, which is the vast majority of banks. I never concern myself with it. I just pick the bank I like.

That is from the viewpoint of a customer. The viewpoint as a shareholder is very different. When a bank collapses, the customers still get their money, but the shareholders will probably lose everything. It's the bank itself that loses out, not the customers - they are safe.

I've seen dozens of banks go under in my life. Like any other business, they can go under. In the big picture it's not a big deal. The biggest problem is when people over react to it. Over reaction is what causes most of these collapses in the first place. Everyone over reacts to news and runs to withdraw their funds. Even the healthiest can't survive a run.

The large majority of banks are FDIC insured. You aren't gong to lose your money, unless maybe you have more on deposit than the insured amount. Even in that case, in my experience, the FDIC still pays it, even if it's over the insured amount. This process might take a short time (days, not weeks) but probably won't matter to most people unless they need the money right now.

The FDIC monitors the banks. They watch for certain signs and financial ratios. At a certain point it raises the first flag. Then the bank will be watched more closely. There are other flags that trigger greater action. Eventually the FDIC will come in and take over the bank. At that point the original bank is gone. All the funds are managed by the FDIC. The FDIC will make up any shortages out of the insurance fund.

On top of all this, in the US there are intentionally large numbers of smaller banks. Throughout most of US history, banks were not even allowed to cross state lines. So a bank with a name like "Bank of America" only operated in California. Same with Wells Fargo, they could not operate outside of California. Chase and Citi Bank could not operate outside of New York. It was illegal for them to cross state lines until I think some time in the early to mid 90s. Even though it's legal to cross state lines now, to my knowledge there are still no nationwide banks. Even the biggest banks are a small part of the whole.

Sixgunsound · Accepted Answer

The dirt bank at the far end of the rifle range. If you mean financial banks hell no. The problem is if you keep too much cash at home they accuse you of drug money and send dogs in to check your bills, some of which will smell strongly enough for a dog to alert on, as something like 1 in 6 bills in circulation has enough drug residue to alert a dog but not to effect a person. The police then I itiate a process called civil forfeiture wherein you either donate that money to the police department or get slapped with a drug financing charge. It's almost like the thieves running government are out to get you... or something.

Kessia99 · Accepted Answer

Jp morgan/Chase, Bank of America.

The only banks that collapsed were the only three US banks that served the crypto industry.

The FDIC just came in and took over Soveirgn even though they were still solvent.

Its obvious this was an attack by big banks and Fed/Gov on the crypto industry, you even got people like former congressman Bernie Frank saying as much.

Anonymous · Accepted Answer

In 2008 the Dems told banks to loan money to anyone. Some bank employees refused, and were fired. Homeless people could get a bank loan. The system collapsed and the taxpayers got screwed. Looks like the Dems are at it again.

Being_a_good_Indian · Answer

In many countries, there are regulatory bodies responsible for monitoring and supervising banks to ensure they comply with laws and regulations and maintain sound financial positions. It's always a good idea to research the financial stability of any bank you're considering using and to consider factors such as its credit ratings, liquidity, and solvency ratios.

That being said, it's important to note that no bank is completely immune to financial risk or collapse, and there is always some level of risk involved when depositing funds in a bank. One way to mitigate this risk is to diversify your deposits across multiple banks or financial institutions.

ArrowheadSW · Answer

Well hopefully today I can scan the internet for analyst's opinions who are hopefully unbiased to get a feel for what is going on with this. I do not think that it is going to be like the 2008 collapse because I don't detect that there are anywhere near the level of bad loans like there was 15 years ago.

NaultD · Answer

Credit unions did slightly better in the 2008 rescission. It's more democratic elections of higher positions so the entire org don't take huge risks. Compared to banks that's single ownership kinda like a king that might go big or go home that caused the 2008 recession.

exitseven · Answer

I heard that a lot of people are taking funds out of smaller regional banks and going with the big banks like Bank If America. They figure that they would be considered too big to fail Besides the are all big Democrat donors just like SVC so they will all get bailed out. Only the taxpayers get left holding the bag.

Surely · Answer

As always. The average person will be the one getting screwed!  Have you seen the investors of the SV Bank?  Millions of dollars to large businesses that Biden wants to make whole!

Adaeva · Answer

Perhaps a small bank located in good middle class neighborhood.

Lliam · Answer

I think credit unions are safer because they are not giant corporations who speculate with their customers' money.

BeMuse · Answer

Wake up...

In_Trance · Answer

Banks crash every year Markets crash every 7-8 The world is not ending

Jennz6 · Answer

None are safe, don’t believe what you hear

Likes2drive · Answer

Chase, Roslyn and TD Bank

TrueConfection · Answer

My mattress?

888theGreat · Answer

None. They are all heading for insolvency.

Leopard23 · Answer

No banks are safe.

What banks do you consider safe from collapsing?

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