Almost Half of Americans Think Money Unsafe in Banks—Poll
The comments below are an edited and abridged synopsis of an article by RT World News
According to a recent poll, nearly half (48%) of Americans are concerned about the safety of their bank deposits following the collapse of Silicon Valley Bank, Signature Bank and First Republic Bank.
The poll results were similar to those reported in 2008 following the collapse of Lehman Brothers, the investment bank considered too big to fail, whose demise triggered the worst financial crisis since the Great Depression.
Republicans were more likely to voice concern about the safety of their money, with 55% reporting they were worried, compared to 51% of independents and just 36% of Democrats.
These responses seem to reflect individuals’ feelings about the party in the White House; asked the same question in 2008 after Lehman collapsed under the Bush (R) administration, Republicans were less likely (34%) to worry than Democrats (55%) or independents (44%). Those numbers flipped just three months later after Democrat Barack Obama was elected president.
Americans making less than $100,000 per year were slightly more likely to worry about whether their money was safe in the bank than those making more (50% vs. 40%), even though wealthier individuals’ deposits would be more likely to exceed the $250,000 covered by the Federal Deposit Insurance Corporation.
Nearly 200 American banks face similar risks to SVB, Signature and First Republic. Former Lehman Brothers VP Lawrence McDonald was more conservative with an estimate of 50 banks poised for collapse, but warned that deposit guarantees would have to be increased to stabilize the sector.
US President Joe Biden has said there is nothing wrong with the country’s banking sector, but promised to extend FDIC protection beyond the $250,000 cap if necessary.
