Costa Rica Declares State of Emergency
President Rodrigo Chaves of Costa Rica has declared a state of emergency, but not due to anything happening in his nation per say. People across the globe are passing through [...]
European Bank Failure & Conflicts in Law in US Branches
QUESTION: Hi Marty –
Thank you for the insight you provide as regards how the world really works. Spending 10 minutes reading your daily blog is equivalent to hours of reading the MSM propaganda and trying to discern the truth.
My question to you is in response to your 10/2/19 post >> Liquidity Crisis & the Pending European Banking Crisis. My mortgage is held by Santander bank, which I believe is headquartered in Spain despite being incorporated in Delaware. What can happen to my mortgage when the crisis is fully apparent to the world? I have minimal money in a savings account at Santander to meet their deposit requirements for a lower interest rate.
Would you re-finance to another US bank or credit union? Would you cash out some retirement savings to pay it off? I have a fair amount of money in retirement, but removing money with taxes and penalties would hurt and it would definitely put a dent in savings, which by the way is all held in mutual funds in US stocks only.
Thank you for your attention.
– STM
ANSWER: If you have a mortgage, as long as you are current, a bank failure will not impact your mortgage in the United States. Typically, assets of that nature are sold off to other banks. However, even a European bank operating in the USA is actually a different entity from Europe. They are under the regulation of the Federal Reserve and must be a member of FDIC.
Even if the parent went down in Europe, the US division would be subject to US rules and there would be considerable conflicts in law that would emerge. The US division would most likely have to be sold to another bank and the Fed may not allow a bail-in on US soil. The more likely scenario would be a shotgun wedding.
Latest Posts
Canada to be Short 3.45 Million Homes by 2030
The demand for housing in Canada drastically outweighs the supply. The Canada Mortgage and Housing Corporation (CMHC) has confirmed that fewer new builds are expected for 2024. In fact, the [...]
California Raises Minimum Wage for Fast Food Workers to $20 per Hour
Effective April 1, fast food workers in California will receive a minimum wage of $20 thanks to a new law signed by Governor Gavin Newsom. This law does not extend [...]
Putin Interview 2020 Prewar
https://www.armstrongeconomics.com/wp-content/uploads/2023/09/Putin-2020-Interview.mp4 Zelensky insisted, thanks to Victoria Nulan, that the Minsk Agreement had to be terminated to Justify his conquest of Russia. This is why I warned Zelensky was the [...]
