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The CRASH Commeth! Reuters: Fed tells its 5 Member-Banks to prep, to stave off coming collapse!

Exclusive: U.S. banks told to make plans for preventing collapse
(Reuters) - U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.

By Rick Rothacker

Fri Aug 10, 2012 8:41am EDT

The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.

Officials like Lehman Brothers former Chief Executive Dick Fuld have been criticized for having been too hesitant to take bold steps to solve their banks' problems during the financial crisis.

According to documents obtained by Reuters, the Federal Reserve and the U.S. Office of the Comptroller of the Currency first directed five banks - which also include Citigroup Inc,, Morgan Stanley and JPMorgan Chase & Co - to come up with these "recovery plans" in May 2010.

More...

Courtesy of LRC:

‘U.S. banks told to make plans for preventing collapse’

Posted by Lew Rockwell on August 10, 2012 11:41 AM

Like adopting 100% reserves? Nope. The inherently bankrupt will stay that way, until—no matter what this article claims—they need a few trillion from the Fed.




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This is a confidence booster.

The release of recovery plans and the announcements of the success of stress tests is an effort to boost public confidence which is on a knife's edge.

When faith in the Federal Reserve System and its credit products reaches the point of exponential collapse then no one will want to hold their paper. No recovery plan will then be of any use since any such plan depends upon some degree of confidence in the SYSTEM.

Any bank trying to unload assets at that point will set off a crescendo of selling since the entire System is dependent on counter parties. This is why the collapse of Lehman Brothers was such an existential threat.

The regulators are trying to prevent any further public bailouts but it is very unlikely that they understand the way any market works. They do know that public confidence is crucial and this is why they are releasing these plans. Reuters is the mouthpiece of the banks, they didn't "discover" anything.

"Jesus answered them: 'Truly, truly, I say to you, everyone who commits sin is a slave to sin. The slave does not remain in the house forever; the son remains forever. So if the Son sets you free, you will be free indeed.'" (John 8:34-36)

the banksters had

since 2008 to steal all they wanted.. and now the rats abandon ship. Mitt the fall guys so Obama gets elected, then they allow collapse and welcome to the police states of America

wow

Now even banks have become "PREPPERS"! Oh and by way....Homeland Security says that make you a possible terrorist!

If you read the article, it's

If you read the article, it's not a prediction, just the Fed warning banks that their future is not guranteed--much like your Grandfather telling you to save for a rainy day.

What I have learned over years is this: nobody knows what the hell is going on--not Schiff, Rogers, Celente, Jones or the people over at Rockwell's. Yes they see wrong and yes they know right, but all that doesn't matter when everything is upside down and evil is operating the machine.

Take care of yourself, your community and ignore the noise....

If you have a 401k

it's a fantastic time to move everything out of the growth funds and into the money market fund option that they probably give you.

And even if you don't have a 401k, if you've got 100 unallocated FRNs, at least consider if you'd rather have 8 5-gallon jugs of water, a 40-lb bag of rice, and a tub of whey protein in your basement.

Black swans are fearsome beasts.

Good Idea

I agree with you regarding 401k investments. Even Money markets could lose a little money, but it's the safest of all the other options.

Sigh

We are so fcuked.

'Peace is a powerful message.' Ron Paul

Stock Operator’s Page–Massive Put Activity Posted on August 5.

Stock Operator's Page–Massive Put Activity by Stuart Wilde. August 5, 2012

There was a massive jump in put options late last week on Wall Street. Some stocks increased their daily volume by 800% and others saw their daily put volume up 500%.

... last time this happened was in the four days before 911. At that time airlines and insurance companies were heavily shorted. In theory 911 was a random event but stock exchange activity in puts that make money when a stock goes down was extraordinarily high.

Some people knew. ...

Not many believe the official 911 story either... The perpetrators have never been brought to justice. (www.stuartwilde.com)

Here is a list of the main shorts last week. Data provided by SchaeffersResearch.com


    Ticker Put Put Vol.
    Symbol Volume Average Ratio
    DD 12,179 1,450 8.4
    HLF 11,726 1,819 6.4
    VZ 25,132 3,909 6.4
    HOG 7,076 1,192 5.9
    XOP 27,471 4,878 5.6
    DE 10,258 2,200 4.7
    JNPR 4,995 1,310 3.8
    FSLR 8,883 2,383 3.7
    GDX 29,379 7,902 3.7
    GM 7,088 1,920 3.7
    NOK 26,227 7,706 3.4
    MA 6,343 2,072 3.1
    F 21,175 7,672 2.8
    ZNGA 5,001 1,935 2.6
    FXI 29,145 11,438 2.5
    ABX 4,611 1,878 2.5
    WFC 16,778 6,949 2.4
    SBUX 10,965 4,657 2.4
    EFA 12,407 5,370 2.3
    GG 2,947 1,291 2.3

    Heavy Put volume.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Pretend it's current news.

If you have yet to take any actions toward surviving in a post-collapse world it is well past time for you to begin. The world economy may be beyond your control but your decisions and actions now could be of life and death importance. What I am doing: moving to an area with no winter, plenty of rain, and a year-round growing season. What are you doing?

(I'm days away from paying for my shipping container to sail to Ecuador.)

New Hampshire and Ecuador.

Oh I heard of that

tons of expat's going to Ecuador. A friend of mine has been wanting to go for a while now.

Keepin' it real.

Let's hope the natives are

Let's hope the natives are nice to you!

My closest neighbors are dairy farmers.

They also raise pigs and have chickens, geese, horses, a donkey, sheep, etc. I left some hand tools and my chainsaw and Alaskan Mill with them. If it's all there waiting for me I suppose that will be a good sign.

New Hampshire and Ecuador.

Good thing government has destroyed the value

of our money and I have to live paycheck to paycheck, which basically means fractional reserve banking will hardly affect me, because I barely have any money to withdrawal from the bank! Woot!

This report is in regards to

This report is in regards to a 2010 document. http://www.economicpolicyjournal.com/2012/08/on-us-banks-bei...

yup, as clearly quoted in the above article:

According to documents obtained by Reuters, the Federal Reserve and the U.S. Office of the Comptroller of the Currency first directed five banks - which also include Citigroup Inc,, Morgan Stanley and JPMorgan Chase & Co - to come up with these "recovery plans" in May 2010.

which is what Wenzel basically also posted.

Predictions in due Time...
http://www.youtube.com/watch?v=zGDisyWkIBM

"Let it not be said that no one cared, that no one objected once it's realized that our liberties and wealth are in jeopardy." - Dr. Ronald Ernest Paul

Old News

Hope it continues to get older, and older. ;) (for our sake)

(made public 6-12 mos.+ ago)

updated

...

Predictions in due Time...
http://www.youtube.com/watch?v=zGDisyWkIBM

"Let it not be said that no one cared, that no one objected once it's realized that our liberties and wealth are in jeopardy." - Dr. Ronald Ernest Paul