Skip to main content

View Diary: Already In Deep Hot Water, JPMorgan Chase May Have Just Reached Its Boiling Point (Part I of II) (181 comments)

Comment Preferences

  •  Money in the bank is not necessarily safe. (4+ / 0-)

    Jon Corzine and the MF Global debacle showed us that. All the trillions in derivatives at the TBTF banks are backed by your FDIC insured deposits. Answer this question - who has first claim on cash at these TBTF institutions? Hint - it's not you as a depositor. It's the derivative counterparties. If the counterparty collateral claims take the cash at a TBTF institution like JPM, do you really believe that the FDIC has an extra trillion dollars just lying around to make good everyone's deposit? Even if they do eventually make good on your depositor claim, do you have  cash/gold/etc. stashed to cover the period when you can't get your money out of the TBTF bank?

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site