Americans are also told by the government their accounts are safe because of FDIC coverage, but most don’t realize the FDIC is also running out of cash and may need to borrow from the very banks they bail out. What it boils down to is that the FDIC will not back up your accounts, but raid your accounts in the next crisis.
President of Greek Banks Association Louka Katseli appealed at the citizens to return their money to the banks. “Banks are absolutely trustworthy,” Katseli told Mega TV “as guaranteed by the ECB and the Bank Association, but they would have been even more powerful if 40 billion euros had not been withdrawn in the last months.
Katseli, a former PASOK Minister, appealed to citizens to return their deposits to the banks “now that the banks are open” after a three-week holiday and capital controls.
“Let’s all help our economy,” Katseli urged Greeks and added “If you take your money out of your chests and houses – which are not safe in any case – and deposit at banks, this will enhance liquidity.” Continue reading