Another story of banks not safeguarding their depositors. Customers at the Ulster Bank in Ireland found their account balances zeroed out and they had no access to their funds. In the UK, TSB customers experienced a similar fate when the bank’s scheduled maintenance caused havoc with their accounts. In this case, some customers had access to other customer’s accounts while some customers had no access to their own accounts.
The evolution of the banking industry has gone from banks being friendly and welcoming customers to robber barons.
Recently, after the bail ins, the government deemed demand deposits as the banks property rather than a liability of the bank. In simple terms, this means that your money once it is deposited in a bank is no longer your money. It is looked as you are a shareholder rather than a depositor. In the event the bank runs into financial difficulty, they can access your money to shore up their finances and the amount returned to you maybe cents on the dollar.
The actions of the banking system has tarnished their image and resulted in savers to seek out other alternatives like cryptocurrencies. Many states are reverting to allow the legal transactions in precious metals. Globally, people are discovering and developing new ways to circumvent the use of the traditional banking system.