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The banking system was already very sophisticated pre-1930s.
by pdog 14y ago
The banking system was already very sophisticated pre-1930s.
- hexis 14y agoIn the US, at least, people still got famous for being bank robbers back then. The FDIC, which provides limited insurance for bank deposits, started their insurance on January 1, 1934. So, sophistication aside, it's an interesting question what happened to depositors after a bank robbery.
- maxerickson 14y agoFDIC doesn't insure against robberies.
- tptacek 14y agoNo, but banks are insured against robbery.
- maxerickson 14y agoSure. I was headed in the direction of the FDIC not changing much about robberies.
- sp332 14y agoThe FDIC doesn't cover bank robberies. https://www.fdic.gov/consumers/consumer/information/fdiciorn.html https://www.fdic.gov/consumers/consumer/information/fdiciorn...
- nickpinkston 14y agoThough I believe they've got another form of insurance for this.
- deleted 14y ago[deleted]
- roel_v 14y ago"In the US, at least, people still got famous for being bank robbers back then." What are you talking about? People are still famous for being bank robbers, e.g. http://en.wikipedia.org/wiki/List_of_bank_robbers_and_robberies#United_States http://en.wikipedia.org/wiki/List_of_bank_robbers_and_robber... . FDIC insurance has nothing to do with robberies, it insures against banks going bankrupt.
- pavel_lishin 14y agoMy question was, specifically: It's 1903, you deposit your life savings into your local bank, and a week alter it gets robbed. Do you get any of that money back? Or are you now broke?
- glesica 14y agoHow would the bank know whose money got stolen? It's basically a bad question. If the bank fails because of the robbery, then you lose all your money in 1903 (or at least most of it). Otherwise, things just keep on trucking as normal. Edit: See the response from raganwald
- raganwald 14y agoA deposit is an IOU from the bank to you; If the bank fails as a result of the robbery, you are SOL. However, if the bank remains solvent, it absorbs the loss. In most cases, even a large robbery wouldn't ruin a bank: They could borrow against or sell their mortgages to another bank for cash to pay depositors. This is different than a safety deposit box: The fine print is that you are responsible for its contents and if the bank is robbed, they will not replace the contents or reimburse you. So, if you put your life savings into gold and put the gold in a safety deposit box, you lose. If you put your life savings in a deposit account, you will be reimbursed unless the bank fails outright. (Prior to the creation of the FDIC in the US or deposit insurance in Canada).
- Graham24 14y agoshort answer: you get your money back.