I'm wondering: if FDIC goes away, would that create an ecological niche for banks to offer *private* insurance of deposits for a fee, by partnering with large insurance companies? Many would opt in if the fee were small enough, creating another huge wealth transfer from poor to rich.
Possibly. Never underestimate these ghouls’ ability to create a market for a new product. I mean it’s nonsense, right? The whole point of putting money in a bank is that they are promising to keep it safe
It would suck, too: private insurance for depositors would be bad because insurance companies have this funny habit of just deciding not to pay claims based on nanofiber-thin pretexts.
Which is why I think banks might go that route. Charge customers for insurance that used to be free, then deny it.
Whatever he is trying to achieve by demolishing the FDIC, it stands to reason he’d want to demolish NCUA as well.
SIPC too, possibly? I guess if his goal is truly to crash the system and move everything to crypto, nothing is off the table
I don’t know if there are barriers to foreign investors, but some of the biggest best financed, most highly regulated (I.e., safe) banks in the world are Canadian.
The CFPB counts 175 banks as major banks. They track their overdraft practices and fees. The GOP is trying to reverse a Biden-era rule to limit overdraft fees.
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Which is why I think banks might go that route. Charge customers for insurance that used to be free, then deny it.
SIPC too, possibly? I guess if his goal is truly to crash the system and move everything to crypto, nothing is off the table
Royal Bank, BMO, CIBC, Bank of Nova Scotia.
https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-rule-to-close-bank-overdraft-loophole-that-costs-americans-billions-each-year-in-junk-fees/
https://www.marketplace.org/2023/12/28/california-credit-union-overdraft-fees/