Donald Trump is considering a possible executive order that would require banks to make sure customers are U.S. citizens to create or keep their accounts, according to a new report.
The proposed action, reported byThe Wall Street Journal, would see banks collect information on individuals’ citizenship through requests for a new category of documents in order to open the accounts.
The Independent has contacted the White House for confirmation or further information about reports of the executive order, which has reportedly raised eyebrows among some banks in recent days.
Let’s pretend this passes and becomes law. Now imagine a nationwide call for people to do a run on their bank, and pull out all their money. Even when the banks try to limit withdrawals, it doesn’t mean you can’t come back at some point and keep withdrawing.
Not everyone would do it, but eventually the news would be running in panic mode, as would investors.
I’d imagine the banks would be keen to demand a reversal of the law real quick…
You wouldn’t even need to organize some mass campaign to get people to pull money out. This thing will trigger a bank run all on its own. Do you think the banks have enough reserves to immediately cash out the accounts of every non-citizen? Sometimes a bank decides it doesn’t want to do business with someone anymore and will close their account. If that happens to you, they send you a check with your account balance on it. But we’re talking tens of millions of people here, many with substantial amounts in US accounts. This order, if implemented, would cause every bank in the country to collapse. They just don’t maintain the reserves to cash out that many accounts all at once.
This is the end-game takeover part and it’s all about consolidation of government into the hands of corporations. Collapse every bank but don’t worry, TrumpBank will suddenly be there to take on all customers with the US Treasury backing it, funneling all banking in the country into one institution to consolidate control.
I’ve spent the last few years feeling like the old tinfoil hat conspiracy theorist stereotype, even when these things prove true. Even typing out this shit makes me feel it again. There was a time when something like this was absurd, now, well…
If only people worked together like that, we’d do amazing things.
If your bank is legally required to unilaterally take your wealth from you at the whim of Trump, everyone with wealth will put it elsewhere. Historically, bank runs are much harder to stop than start.
The same concern looms over govts threatening to sieze accounts that belong to the Kremlin over Ukraine. If anyone does it, they are implicitly signaling to their other clients that their funds are not safe from political strife.
It’s en executive order. Nothing to pass, and it probably will get defeated in court unless they can venue-shop and route it to a corrupt judge.
Aileen is pretty busy these days I hear.
Sharemarket too, I’d have to sell my US shares without my brokerage bank acct (I don’t live in the US)
My understanding is that FDIC means you can’t really do a bank run, the bank can just get its money back from the feds
Can we cause essentially a run on the bank by having 40% of us move all our liquid assets to euros at once and continuing to move incoming money to cash?