Banks put most of their assets in direct credits. Treasury bills second, munis-corporate-mortgage bonds third. Stocks fourth, only accounting for up to 10% of their deposits. If he's very conservative he should open an account in Treasury Direct and roll 4 week T-Bills. Zero risk, zero commissions.
Thanks crgarcia. He does some T-bills, not sure to what extent. Good idea though. Thanks to the rest of you guys for your responses as well.
With a great deal more difficulty than seizing American assets. The point is not to evade American authority or taxes. The point was to safeguard his assets
Actually US Treasury could be seen as "sub-prime"....maybe time for international lenders to pull the plug on lending to US or force 500 basis point increase in cost of lending.
Ask this guy if it is a strange fear. Banks are not backed by the US government. Accounts are insured up to $100,000 by the FDIC. http://www.post-gazette.com/pg/07217/807090-28.stm A lifetime of saving evaporates with bank's collapse Lawrenceville bank closes, one customer is short $321,573 Sunday, August 05, 2007 By Dan Fitzpatrick, Pittsburgh Post-Gazette Raymond Przybilinski socked away $521,000 from a lifetime of driving trucks, working overtime when he could and playing the piano or accordion late into the evenings at weddings, hotel bars and social clubs. "I never drank, I never smoked, always saving," said Mr. Przybilinski, speaking from his kitchen in Stanton Heights. The money was destined for his five children. But that was before more than half of the family nest egg disappeared on Feb. 2 as state banking regulators seized Metropolitan Savings Bank in Lawrenceville, citing "unsafe and unsound" operations. When Mr. Przybilinski tried to take his money out, the man in charge of Metropolitan Savings' assets informed him that there was only $200,000 left to withdraw -- the amount protected by the federal government. A letter from the Federal Deposit Insurance Corp. later confirmed Mr. Przybilinski's status as a creditor for the remaining $321,573.47. He may or may not recover some of that money. ...
Guess he didn't read the fact that each depositor is insured up to only $100,000 dollars in one bank. I have spoken to people who thought it was $100,000 per account and were shocked when they found out it was $100,000 per depositor. It is sad for the guy though.
One might argue they already are. We've been spending money we don't have (unless they print more I guess, doh)
"Later in life, he chose not to invest his savings in stocks, which "go up and down," he said. Instead, he stashed all of it in banks. Two years ago, he transferred all his savings from Fidelity Bank to Metropolitan because of an account program offering interest of 5 percent. T" as the saying goes "More money has been lost in search for yield than any other way". He should blame himself, he should have diversified among different banks and sticked with the big banks because they are backed the goverment. tried to reach for a little more yield on a weird bank got what he deserved