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Forum Post: More effective action - a run on the bank!

Posted 10 years ago on Dec. 1, 2011, 1:20 p.m. EST by CoveyGirl (3)
This content is user submitted and not an official statement

Okay, this seems like a no-brainier to me, but tell me what you think.

If Occupy picks one bank, say BofA, then designates one day wherein everyone supporting the movement withdraws all their money from it can you imagine the impact that would have on a bank!

Then when word spreads that so many thousands of people world wide are withdrawing their money from that bank, others will to just because of fear. THUS CREATING A RUN ON THE BANK.

This should get the bank's attention. It will affect them directly. What do the big banks care if you squat in a park? They don't. But I bet you they will care when you are draining their cash in branches all over the world!!!!



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[-] 2 points by nucleus (3291) 10 years ago

This is going to happen soon, and not because of OWS, but because BoA is on the verge of collapse. The Fed's latest move (Nov. 30) was a desperate effort to shore up this symbol of capitalism ("Bank of AMERICA").

When the stock price drops to around $4, they will have to start liquidating to maintain capital requirements. Since the stuff they will have to liquidate is leveraged around 26 to 1, the underlying value is only 4%, and it is the margin call from hell: all debt, no assets.

[-] 1 points by CoveyGirl (3) 10 years ago

That is a good point, nucleus, but I don't think it will get that bad for BofA without any additional coercion (i.e. from regulators).

But my point is if Occupy wants to make an impact - this will do it. Don't stop at BofA, hit Wells Fargo the next day, Citibank the day after, etc. Can you imagine????

Unfortunately, I don't think this grass roots, ill organized movement could pull it off. More's the pity.

[-] 1 points by bigbangbilly (594) 10 years ago

You would need to run it a couple of times as they are fdic insured.

[-] 1 points by SGSling (104) 10 years ago

I don't think this will work the way you want it to. It is true that BofA is only required to keep 10% liquidity, however do "the 99%"'s holdings even make up that much of the total BofA assets? Even if there were a run, the government would just call a bank holiday and then you would be stopped.

[-] 1 points by JPB950 (2254) 10 years ago

That was part of the purpose of the Fed, to prevent runs. Who would it hurt really though? Too many people depend on banks on a day to day basis. Look at a bank as a vicious but necessary animal. We want to muzzle and control it, not kill it. Careful regulation is a better answer.

[-] 1 points by CoveyGirl (3) 10 years ago

It won't be controlled by "us", but by Gov't. Look what they've done so far! You think they will put your proverbial muzzle on them? Really??

Forgive me if I am wrong, but I thought this is what Occupy wanted - to have things done by and for the 99%, but you are telling me now that because it would be an inconvenience on people not to "depend on banks on a day to day basis" that we will just keep them in the Government's pocket.

It's that attitude that got us where we are today.

[-] 1 points by JPB950 (2254) 10 years ago

I just think the government has to be us. If the support is there Occupy can field candidates from districts across the country and get influence in congress to make the necessary laws. I don't believe the banks will suffer even if a run could be pulled off. Who is suffering from the housing collapse?

If B of A started to go down they would likely get a bail out, if not, every depositor is left waiting for the FDIC to give them their money. A great example to me of cutting your nose to spite your face. I don't see the answer as destroying things, it's in taking control or them through the system. It's idealistic perhaps, but it's worked for civil rights and the environmental movement to some degree. It's more effort and it takes longer but it can be effective.

[-] 1 points by Rico (3027) 10 years ago

The Federal Reserve will print the dollars needed to keep BoA liquid.

[-] 1 points by CoveyGirl (3) 10 years ago

Yes, the Fed may bail them out, but that will take time. In the interim, it will definitely get the banks' attention.

At this point in Occupy's career the police just keep moving protesters. It doesn't bother the banks anymore than the gnats do CEO Brian Moynihan when he is on his luxury yacht.

The point is grab the banks attention and show them Occupy can wield blows that have consequences. At least you will catch the bank's attention and do so without freezing in a tent or compiling an arrest record!

[-] 1 points by Rico (3027) 10 years ago

Please see my post at http://occupywallst.org/forum/the-power-of-the-people/ and the shopping guidelines I compiled from these forums at http://bit.ly/DoYourBit . There's little sense, in my opinion, of trying to 'run a bank,' but there is immense power in being more discriminating in who we do business with. Better yet, it doesn't require we get politicians to help us, we can do it ourselves, right now. This is the social media generation, and if they can get thousands into the streets, they can get millions to see the sense in exercising our consumer power to bring our jobs back, help ensure fair wages are paid, etc.

[-] 1 points by theCheat (85) 10 years ago

Is that what you really want? Mommy and daddy will not be able to support you any longer and then what?