Something settled into my mind while having a delightful phone conversation with Francon.
With five garnishments in admiralty underway in the USDC DC, wherein the Garnishees (TRUMP and MNUCHIN) reside, that admiralty rules might not apply to the redeemed. Admiralty as a jurisdiction in America must arise from below the high tide mark, or be related to an insurance contract. The insurance contract can be drawn up at sea or anywhere inland.
The fractional lending requires insurance (FDIC or a Credit Union assurance). Suppose after all these years we have been pressuring the system into actual special deposit? I recall how a chain of credit unions closed down but years back is when some intrepid redeemed trustees began opening many trust accounts and moving large amounts of money through the credit union chain.
Out of the blue, trustees began hearing that they must quit all non-endorsing of checks. When the trustees claimed that they would sign as they pleased, the chain shut down.
I have always advocated that we do not bother patrolling or even monitoring the lawfulness of the activity happening behind the teller window. So my presumption has always been that nobody gives a flip and all the money is processed the same, in the vault. That it is all insured and fractionalized upon. The branch managers do nothing to make sure that those bills deposited or set aside upon a check deposit were set aside "special deposit" in the vault for when that particular redeemed customer came back for "his or her money". And for amounts less that (let me guess) $1000 that is still true.
My imagination has that the board of trustees for this credit union chain serving at the pleasure of the OCC (Office of the Comptroller of the Currency) realized they had been breaking the law, by treating these deposits as though they are insured for fractional lending/reserve banking. Or maybe the OCC looked over the books and noticed a discrepancy worth mentioning?
The closure was silent correction. No discussion. Like pulling a weed and burning it.
With five garnishments in admiralty underway in the USDC DC, wherein the Garnishees (TRUMP and MNUCHIN) reside, that admiralty rules might not apply to the redeemed. Admiralty as a jurisdiction in America must arise from below the high tide mark, or be related to an insurance contract. The insurance contract can be drawn up at sea or anywhere inland.
The fractional lending requires insurance (FDIC or a Credit Union assurance). Suppose after all these years we have been pressuring the system into actual special deposit? I recall how a chain of credit unions closed down but years back is when some intrepid redeemed trustees began opening many trust accounts and moving large amounts of money through the credit union chain.
Out of the blue, trustees began hearing that they must quit all non-endorsing of checks. When the trustees claimed that they would sign as they pleased, the chain shut down.
I have always advocated that we do not bother patrolling or even monitoring the lawfulness of the activity happening behind the teller window. So my presumption has always been that nobody gives a flip and all the money is processed the same, in the vault. That it is all insured and fractionalized upon. The branch managers do nothing to make sure that those bills deposited or set aside upon a check deposit were set aside "special deposit" in the vault for when that particular redeemed customer came back for "his or her money". And for amounts less that (let me guess) $1000 that is still true.
My imagination has that the board of trustees for this credit union chain serving at the pleasure of the OCC (Office of the Comptroller of the Currency) realized they had been breaking the law, by treating these deposits as though they are insured for fractional lending/reserve banking. Or maybe the OCC looked over the books and noticed a discrepancy worth mentioning?
The closure was silent correction. No discussion. Like pulling a weed and burning it.
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