There is hidden information being revealed in these [This week's bank story] phone calls...They're running out of time...The Venturi effect of the whole monetary reform is becoming so narrow he can barely get everything through fast enough right now.
The employees are being educated/updated. Very good. They are telling them the dinar...we'll be doing it, sure...The banks know when and they're getting the customers ready and preparing them...This is what I am coming across...You may be still getting a lot of denials and that's still to be expected, but I am a central hub of information. People call me because they want me to share it with you...these bank stories are powerful.
[California Golden Valley Bank Story]
Bank Story Lady: (family friend) had an appointment yesterday. Whenever the banker found out how many dinar that we are holding in our group which is about half a billion he said that was too much, they weren't going to be able to handle that much...Then this morning he got a call from his bank Golden Valley and they said look we had a meeting about you and your group last night.
FRANK: They had a meeting about his issue with the dinar?
BANK STORY LADY: Yes, because it was so much. They invited him back...we're waiting for that update.
FRANK: The updates came...Turns out this bank has told this group of people...we can't handle that much volume at our banks, therefore we are sending you to an exchange center and they will give you 4.5% to put it in the bank. They said Morgan Stanley are the people we are going to introduce you to for a management company to help you when you come in towards the end of the year.
Awake-in-3D: Why your Bank Deposits can be Legally Confiscated
Why Your Bank Deposits can be Legally Confiscated
On December 14, 2023 By Awake-In-3D
Read the separate introduction to this article here
The Historical Context of Banking Regulations
In the records of American financial history, the westward expansion of banking institutions played a pivotal role, mirroring the expansion of railroads, land settlements, and the burgeoning farm mortgage market.
As banks extended their reach, so did the growth of bank shareholding, setting the stage for a dynamic interplay between financial institutions and the broader economic landscape.
Impact of the 1929 Stock Market Crash and the Creation of Bank Deposit Insurance
The results of the 1929 stock market crash reverberated through the foundations of the banking sector, triggering bank runs and failures that exposed a growing number of average Americans to the double liability consequences.
It was amidst the chaos of the Great Depression that the New Deal under President Roosevelt introduced a groundbreaking solution — deposit insurance. This provision aimed to make depositors whole in the face of banking failures, signaling a shift in the characteristics of the depositor-bank relationship.
In the aftermath of the stock market crash, the concept of deposit insurance gained traction, offering a safety net for depositors.
The FDIC (Federal Deposit Insurance Corporation) was established in 1933 as a government agency funded by premiums paid by private banks.
Dual Shareholder Liability and the Shift to Deposit Insurance
Before the founding of the Federal Reserve System in 1913, senior bank managers of national banks were also major shareholders of their bank and therefore held personally liable for net losses in the event of a bank’s failure.
Meaning, bank managers had to liquidate their holdings to pay back depositors if the bank failed.
This mechanism of dual shareholder liability served as a robust mechanism to ensure prudent banking practices.
However, as the 20th century progressed, the landscape changed, and the focus shifted toward a reliance on deposit insurance, rather than dual shareholder liability.
This reduced the responsibility and influence of shareholders to proactively monitor their bank’s financial stability.
Basically, the adoption of Deposit Insurance created a moral hazard where shareholders of banks were no longer held responsible for paying back depositors with their money if the bank failed.
You Do Not Legally Own the Funds Deposited at Your Bank
The relationship between depositors and banks was established by a traditional legal framework surrounding deposit ownership.
It used to be that once funds are deposited into a bank, the legal ownership shifts, and depositors effectively hold unsecured IOUs. This meant that depositors were deemed as Creditors of the bank.
Traditionally, this arrangement implied that banks were obligated to repay Creditor funds in cash upon demand, providing a sense of security for depositors.
But not any longer.
The traditional understanding of the depositor-bank relationship comes under scrutiny within the fine print of an FDIC-BOE joint paper. This plan, dated December 10, 2012, proposed a paradigm shift — converting these unsecured IOUs into “bank equity.”
In essence, depositors would no longer be Creditors holding claims to their funds; instead, they would become stockholders in the bank, with the fate of their “investments” (deposits) tied to the bank’s performance.
When looking into the details of the FDIC-BOE joint paper, titled “Resolving Globally Active, Systemically Important, Financial Institutions,” the plan outlines an efficient path for returning a failing bank to the private sector, emphasizing the conversion of depositor debt into equity as a crucial step in this process.
The Cypress Banking Crisis was a Test for the New Bail-in Process
To better understand the full implications of the FDIC-BOE directive, we can look back at what happened to depositors during the Cypress bank crisis in 2013.
The confiscation of bank customer deposits to bail out failing banks (called a bail-in) was not a one-off incident. It proved to be part of a broader strategy rooted in international initiatives originating from the G20 Financial Stability Board in Basel, Switzerland. Cypress banks were the perfect testing ground.
This comprehensive document reveals a carefully crafted plan to address the fallout of a financial institution’s failure, emphasizing the need for a controlled resolution to avoid systemic disruptions and the utilization of public funds.
The pivotal element of this plan is the conversion of depositor debt into equity, altering the traditional dynamics of banking relationships.Connections between the FDIC-BOE and the G20 Financial Stability Board (The Elite Central Planners)
Tracing the roots of the FDIC-BOE directive takes us back to the G20 Financial Stability Board in Basel, Switzerland. The global nature of these initiatives signifies a coordinated effort to establish a framework for handling failing financial institutions on an international scale. Understanding these origins provides context to the broader implications and suggests a shared approach among major economies.
The shockwaves from the Cyprus banking crisis and the subsequent confiscation of customer deposits serve as a stark reminder that the FDIC-BOE directive is not an isolated strategy.
A broader examination of global initiatives reveals similar directives in New Zealand, highlighting an international trend towards bail-ins as a mechanism to stabilize failing financial institutions. The interconnectedness of these strategies underscores the need for a unified approach in addressing systemic risks.
Here’s the Kicker: The FDIC Insures Bank Deposits but NOT Funds Determined to Be Bank Equity
One notable aspect of the FDIC-BOE directive is the absence of explicit mention regarding the protection of “insured deposits” in the United States. This omission raises questions about the safety of deposits traditionally covered by FDIC insurance, leaving depositors uncertain about the security of their funds in the event of a financial institution’s failure.
The primary risk (and significant cause for concern for your bank deposits) pertains to the potential transformation of depositor funds into bank equity through the FDIC-BOE directive, a component of the Dodd-Frank Act. This conversion, termed “statutory bail-ins,” must be understood regarding the security of depositor funds and their coverage under FDIC insurance.
The simple takeaway:
Your Deposits Become Bank Equity: Traditionally, depositor funds are legally considered assets of the bank as soon as they are deposited. The FDIC-BOE directive introduces the possibility of converting depositor IOUs into bank equity, fundamentally altering the nature of the depositor’s claim on the bank.
Your Potential Loss of FDIC Protection: If depositor IOUs are converted into bank equity, they lose their status as insured deposits, putting them at risk of being wiped out in the event of a financial institution’s failure. This is a departure from the traditional understanding that insured deposits (typically up to $250,000) are protected by FDIC insurance.
The Systemic Risks: The shift from secured depositors to unsecured stockholders introduces systemic risks, potentially exposing depositors to losses akin to those experienced by Lehman Brothers shareholders during the 2008 financial crisis.
In essence, the risk lies in the legal and systemic shift that could render depositor funds vulnerable to losses, challenging the conventional understanding of FDIC-insured deposits as a safe haven for cash.
Summarizing the Significant Risks and Concerns for Bank Depositors
The Legal Shift: From Secured Depositors to Unsecured Stockholders
The FDIC-BOE directive represents a significant legal shift for depositors. Once holders of secured deposits with a legal right to demand cash, we may find our deposits transformed into bank equity and we become unsecured stockholders, subject to the market’s uncertainties. This shift challenges the traditional perception of deposits as a secure form of holding wealth.
Implications for Insured Deposits: No FDIC Safety Net
The lack of explicit mention for “insured deposits” in the FDIC-BOE directive introduces uncertainty for depositors who have relied on FDIC insurance to safeguard their funds. The traditional safety net provided by deposit insurance may no longer extend to cover the potential conversion of these deposits into bank equity, exposing insured depositors to unforeseen risks.
The Domino Effect of One Major Bank Failure Spreading Across the Financial System
Beyond individual depositors, the broader systemic risks associated with the FDIC-BOE directive become clear. The interconnected nature of financial institutions means that the repercussions of a single bank’s failure, coupled with the conversion of depositor funds into equity, could trigger a domino effect, impacting the stability of the entire financial system.
Basel III International Reforms, Committee on Banking Supervision, Bank for International Settlements, Revised June 2011 http://www.bis.org/publ/bcbs189.pdf
“Shareholder Liability: A New (Old) Way of Thinking about Financial Regulation,” The C.D. Howe Institute, Commentary No. 401, February 2014, by Finn Poschmann. Search for Commentary 401.pdf at http://www.cdhowe.org
French report: Dollar restrictions confuse the lives of Iraqis due to “monetary sovereignty”
Shafaq News/ A French report shed light On the deficit occurring in the withdrawal of Iraqi citizens’ funds transferred to them from abroad The country, months ago, because it was sent to them in US dollars, after the authorities imposed restrictions New complications complicate the use of hard currencies, in its attempt to control the black market exchange rate, in A procedure considered paradoxical in an oil-rich country that has huge reserves of hard currency More than 100 billion.
According to a report published by Agence France-Presse Press”, and viewed by Shafaq News Agency, the emergence of a parallel market for exchange, and the imposition of the authorities Restrictions within the framework of strengthening banking supervision in compliance with international rules imposed by them Washington, has complicated the daily lives of residents.
The official exchange rate is 1,320 dinars For one dollar, but at money changers, the price of one dollar equals 1,500 dinars Up to 1,600, and currency exchange offices have begun to deal with customers with extreme caution Dozens of money changers accused of price manipulation were arrested, according to the report.
The Central Bank of Iraq announced in a statement Previously, he decided, as of January, “to restrict all commercial and other transactions.” In Iraqi dinar instead of dollar. in the country.
“Monetary Sovereignty”
While the dollar can be withdrawn in cash from… Deposits previously held in hard currency, naturally, will become mandatory as of this year 2024, withdrawing every money transfer from abroad exclusively in dinars, and according to the official exchange rate.
The Prime Minister’s Advisor for Affairs confirms Finance, Mazhar Saleh, said that “this is the rule that is part of monetary sovereignty, But there are exceptions, especially embassies.
He adds: “We strengthen what is called sovereignty “Cash…it is not possible to deal in two currencies within the national economy.” However, these restrictions apply It raises controversy and disrupts the daily life of Iraqis, according to Agence France-Presse.
Direct transfers have become outside the framework Banking is not possible with dollars, and is limited to dinars at the official rate, as the sector has adopted Banking in Iraq is an electronic platform, the aim of which is to monitor the uses of the dollar and tighten Control of a booming informal economy, while tax evasion attracts some Importers and traders.
The Prime Minister, Muhammad Shiaa, approved this Sudanese, that with the new procedures, the cash supply in hard currency is available The market declined from “200 to $300 million” per day to “30.” And 40 and 50 million dollars.”
Last September, he said Al-Sudani said that merchants who deal with Iran are forced to turn to the market Parallel to obtaining currency, given that Iran is a country “that has sanctions, and is not allowed Conducting financial transfers.
At the same time, he confirmed that the two banks The central authorities in Iraq and Iran discuss a “mechanism” In order to “organize.” Trade”, which would “split the back of the parallel market”.
“Suspicious trade”
The government announced in late November Last second, for facilities to pay importers of cigarettes, cars, gold and telephones Portable, to obtain foreign currency through official channels.
As for bilateral exchanges, Authorities encourage banks and importers to use currencies other than the dollar, such as the euro Or the UAE dirham or the Chinese yuan.
The prime minister’s advisor, Mazhar, defended Saleh, about banking restrictions aimed at “verifying these transfers,” With the aim of reassuring the “international financial community, and also for reasons related to Iraqi society: Is it… These transfers actually go to finance Iraq’s trade?
Saleh added: “What is happening is irrelevant With a strong Iraqi economy, Iraq today has the highest levels of foreign reserves in “His financial history,” but “structural changes occurred in matters of dealing with the currency Foreign”.
He also stated that it was to protect the country With a population of 43 million people of inflation, importers have access to Dollar, and buy it at the official rate, which is more beneficial.
This is especially true of materials Food, medicines and building materials. Saleh believes that this “creates an atmosphere of stability. “This is against the parallel market.”
.. .I DO "BELIEVE" THAT IT HAS BEGUN!! RATES DID CHANGE IN IRAQ LAST WEEK...MAYBE AGAIN OVER THE WEEKEND?
WAITING TO HEAR FROM SOME FOLKS WHO WERE EXCITED LAST NIGHT AND WERE LOOKING TO SEE SOMETHING (BEHIND THE SCENES) THROUGHOUT THE NIGHT...TIME WILL TELL
The expected RV is now scheduled. Good news. This morning Iraq citizens were told in the next couple days. Sudani told ppl the rate is going to change in the next couple of days. I also go this from Tish she was watching in Iraqi tv. The RV was supposed to occur last nightThurs. 14 Dec.
Supposedly, the reason it didn’t is the U.N. filed a motion to take over the entire process. The judge denied the U.N. motion. It didn’t make any sense b/c the IMF already released it to the counties. Every country has money, reserved currency, and is waiting to go live. Our window of time is4:30pm Eastern Fri. 15 evening until 5:00 pm Eastern Sun 17 Dec.of when this could go through. In Iraq today the Kurdistan region was told that today was the last day they can turn in three zero notes and actually get 25,000 dinar for a 25,000 note.
Sudani was telling ppl this morning in a town hall type of meeting that the rate is going to change in the next couple of days. The last day the rate changed was the 20th of December. If Iraq says today is last day, 4:30 EST is the next day Iraq time ~ a few minutes past midnight. They wanted to do it at 1:00 am eastern. This is how they want it to go down. In Iraq everyone is off Monday and Tuesday so they can go vote and the budget will be released onTuesday.All the money.
Always said they wouldn’t do that until the rate was changed. This hopefully will be our weekend. People who had bank appointments this weekend were told that there would be no fees during the exchange. If you go to the teller window, there will be fees. There is no turning back. US has released it. IMF released to each country so when it goes, they can start exchanging. The money is in place so they can operate with it. They can’t wait. Sudani saying in acouple of days.
Fri. 8 Dec. TNT: It was supposed to goThurs. night 7 Dec.Everyone was waiting on the IMF to release it. After a meeting earlier todayFri. 8 Dec,contacts said it will happen byMon. 11 Dec. Sun. 10 Dec. is Iraq’s Victory Day, so Tony thinks it might happen then.
People that have already contacted their banks are being called in to go over the procedures for the exchange, interest rates they would pay them, debit and credit cards that will be available to them, etc. Banks are acknowledging that it is happening and that they want people to choose them.
The head of the armed forces coming out and saying the whole of the armed forces from Wednesday to Wednesday starting the day before yesterday through Wednesday of next week are on the highest level of alert in the whole of the armed forces. Level C...It's like a bloody call for a war, reservists and so on. It's saying it's because of the election on the Monday the 18th...
That makes no sense. Most countries like here in the UK and the US we don't have a day off for an election. Last time they had council elections they only had 40% turn out. Pretty apathetic. It's Iraq, they give them a day off. Now Sudani says they have two days off, Monday and Tuesday. Now we hear the whole bloody army's been called up on massive stay of alert.
I'm thinking these are council elections, no body give a fiddles fig about these things. Very strange. I thought, hmmm, new small category notes, ATMs, a lot of people trying to get into a bank to change their notes...Thinking about it, they may want the army involved to protect movements of new notes and coins...The 20th they've got 5 days to spend the big chunk of the budget that's been sitting there waiting for over 11 months. Why? Because they don't want to spend it at 1300. It's too expensive....It would seem perfect timing perhaps they mask these elections with something else which may or may not be the rate change and new small category notes. That's my eye on the prize today. Could be wrong. Just my opinion.