Banks have figured out how to Close without Panic from the People

Looks like banks have figured out how to close and have Banking Holidays, without causing panic. No doubt people will accept it for this excuse though, those who are aware will know the real reason. The state of Tennessee has issued a statement/letter to the banks of the state. It gives banks the right to close at their discretion, due to the swine flu!

Considering not that many people have contracted the flu and the mortality rate is very low for it, the banks are going to use it as an excuse to close business. How perfect for them.

I will bet the general public will accept this too, because the media will relay, "Banks had to close for the benefit of the public, strongly".

I find this completely amazing, did the banks in Asia close a few years back with the bird flu? No, not from everything I have read.

The FDIC comes out next week with their 2nd quarter report - the report is not going to be good. Will banks try and have a holiday right afterwards, though the swine flu has not hit hard?

Link to Tennessee government's site with letter to banks:
http://www.tennessee.gov/tdfi/banking/bulletins/B-09-1.html

TO: All Tennessee State Chartered Banks
SUBJECT: Closing of Bank Offices - TCA §45-2-603 and §45-2-604
DATE: August 5, 2009

This bulletin is intended to address specifically the issue of suspending bank office activity in response to possible H1N1 (swine flu) outbreaks and more generally to emergency powers of banks in response to disasters. Additionally, this bulletin provides certain guidance should a Tennessee state bank close certain offices under the authority of TCA §45-2-603 and §45-2-604 in the discretion of its directorate and management.

Banks organized under the laws of the State of Tennessee may, at their discretion, temporarily close offices or operations in areas affected by an emergency resulting from fire, act of God, attack by a foreign nation, riot, insurrection, civil disorder or any similar disaster without prior approval of the commissioner in accordance with TCA §45-2-603 and §45-2-604.

The Department of Financial Institutions considers bank determinations that H1N1 outbreaks pose legitimate health risks to the general public or significantly impacts the ability of a banking institution to maintain an appropriate level of personnel on site to meet customer needs to be included among any “similar disaster” as referenced in TCA §45-2-603. Other events may also be included among any similar disaster, and the directorate and executive management are encouraged to use reasonable discretion in applying TCA §45-2-603 and §45-2-604. However, the safety of institution personnel and local citizens are of paramount importance when evaluating the appropriateness of closing offices.

We encourage institutions to carefully monitor and consider any guidance issued by state and federal government authorities regarding such events. While TCA §45-2-603 and §45-2-604 do not require the Department’s prior approval for office closings in certain events, we do encourage institutions to notify both the Department as well as their primary federal regulator in as timely a manner as reasonably possible in the event of such a closing. Additionally, institutions should make a reasonable effort, in consideration of the public safety, to notify and accommodate customers.

This bulletin shall serve as notice that no specific prior approval from the Department is required for Tennessee state-chartered banks to be closed more than two consecutive business days should a Tennessee state-chartered bank, in its discretion, determine it is necessary to temporarily close the bank or an office of the bank in accordance with TCA §45-2-603 and §45-2-604, pursuant to an H1N1 outbreak or similar disaster.

Banks should be advised; however, that if the Federal Reserve is open that the Federal Reserve may continue to present cash items to banks even if a particular bank has exercised its discretion to close the bank or one of its offices in accordance with TCA §45-2-603 and §45-2-604. Please contact your respective Federal Reserve branch for further guidance.

Questions regarding this Bulletin should be addressed to Tod K. Trulove, Assistant Commissioner – Bank Division, at 615/741-6013 or Tina G. Miller, General Counsel, at 615/532-1030.
Greg GonzalesCommissioner

I sincerely hope, people are not fooled by this, in my opinion, people should try and get the majority of their money out of the banks now, before next week's FDIC report.

I read an article yesterday (not inserting it - due to it not being validated yet) that banks will start limiting the amount of money people can get out of their account. The information said:

All account access was to be limited by the Bank and that any withdrawls, checks, debit cards, or access of credit lines, and IRA's could total no more than $500.00 per one or a combination of accounts every 7 business days until these limitations were lifted by Federal Authorities.
2. All lock boxes were to be sealed and access to contents disallowed by regulations imposed by Executive Order, the IRS, FDIC, and the Federal Reserve Bank until further notice.

Again this has not been validated - so it may just be a rumour, until I find positive validation - I am on the fence with this. Though I did positively validate the Tennessee Government letter regarding bank closures.

All I can say, in these days and times, everyone needs to look out for themselves and do what they need to do to protect themselves.

Everything is not as wonderful as the media makes it out to be.

Yes, the Webbot does say, bank holidays are suppose to start next month.

If you have information on any other state governments sending letters to the banks, giving them the OK to close for Swine flu, please feel free to send me the link at sherriequestioningall@yahoo.com