Can You Trust a Bank Today with $250K or More?
Recently we saw the FDIC release a letter to the general public regarding banks under reporting their uninsured balances. Although banks are highly regulated, it's activity of under reporting or miss guiding the public trust with fictional financials is shocking in todays bank running environment. Under reporting uninsured accounts is misleading to depositors and is failing to build public trust in the banking system. Because of bank runs and miss guided financials, can large depositors trust banks?
Banks can’t be trusted. Some of these banks are publicly traded entities, which are regulated by Dodd Franks bank reform and have full disclosure requirements with the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) filings from the US Securities and Exchange Commission (SEC). Regardless if the under reported uninsured balances were reported incorrectly intentionally or not, why trust a US bank when we see mysterious numbers being reported.
When FDIC regulators are sending newsletters to depositors warning banks to update their under reported uninsured balances, can either be trusted? Were any fines issued?
We also see another bank failure from Pacific West Bank with a prearranged acquisition by smaller Banc of California. What’s interesting is the months prior, Pacific West Bank advertised high yield bank certificate of deposits (CD’s). Talk about cooking the books for valuation purposes.
When the Fed goes on a interest rate rampage which has about 400 Ph.D economists, you would think they know what they are doing? Lo Behold bank runs and bank failures…. So much inconsistencies of rate hikes, hikes, hikes, then pause, then hike shows how little forethought the Fed has on the US economy and fighting inflation.
Because of shady bank practices, unenforced regulations, and bank failures, money should be put somewhere else other than an FDIC bank. There are alternatives such as trusted broker dealer custodians or direct with the US Treasury. We wrote about alternatives to banks in prior posts. Talk to our trusted Los Angeles financial advisors today to help you decide your best options.