Letter: Beware of bank 'bail-in'

April 13, 2014 

Are your deposits safe in banks? No.

Why? It's called a bank bail-in. Bail-in allows failing institutions, including banks, to recapitalize by taking part of your money from your accounts with no recourse. Go to your computer and type in "bank bail-in." Scary? It should be.

The Dodd-Frank Act of 2010 allows the Federal Deposit Insurance Corporation to recapitalize a failing institution by taking your money -- deposits -- to bail them out. Credit unions are exempted.

Did you know Bank of America and Chase have more unsecured debt obligations than the gross national product of America? If Congress does not act soon to restore the Glass-Steagall Act, then say goodbye to your money!

JP Morgan head Jamie Dimon is one of the leading opponents of restoring Glass-Steagall.

"Here's why we won't see another Glass-Steagall," supplies data from opensecrets.com, showing that Wall Street's financial/real estate/insurance sector has been the single biggest political contributor for years, and No. 1 in 2013-2014 at $148,812,902. In addition, that sector has spent more than $450 million per year lobbying over the last five years.


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