US Regulators Tell Banks to Prepare for Collapse

Here’s a news story that does anything BUT create confidence in the investment world.

US regulators have told America’s largest banks to prepare for a financial crisis to prevent a collapse because they won’t be able to count on government help next time there is a serious economic and financial crisis.

This is certainly no surprise given the US government’s fiscal condition, reduced credit rating and monetary policy at the apex of what it can do to attempt to blow wind into the economy’s sails as it is. But it is also a concern because, as JP Morgan Chase has shown recently, counting on these financial institutions to be responsible is a questionable policy.

Investors need to take their own action to prepare for a financial crisis. That means NOT depending on ANYONE’S promise to repay. Gold is an asset in its own right, completely independent of anyone’s promises. That’s why it has stood solid as a store of value and trusted medium of exchange for 5000 years…

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

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…

http://www.reuters.com/article/2012/08/10/us-banks-recoveryplans-idUSBRE87905N20120810

 

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