""Some credit unions are already seeing consumers withdraw their accounts because they are concerned about the possibility of this government intrusion," he said. "Any increase in compliance burdens ultimately leads to higher operational costs that could impact service and credit unions' lending capacity. Every dollar spent on cumbersome compliance costs is one less dollar to lend to members."
The Independent Community Bankers of America, an organization that represents a vast number of community banks of all sizes, said some of their member banks have received calls from customers inquiring about how to close their accounts if the new IRS reporting requirements become law."
Steadily removing money each week from the bank.
Yep. I drain my account weekly. It's none of their damn business.
I didn't even think about that aspect of all of that, I wonder if it was planned so that people started to not use their banks, and put the little ones out of business?
It had occurred to me that this might be an attempt to cause another run on the banks like happened in 1929. Thanks to that we now have the FDIC but it still could be catastrophic, just like it was then.
That was what really caused the Great Depression.
"The U.S. appeared to be poised for economic recovery following the stock market crash of 1929, until a series of bank panics in the fall of 1930 turned the recovery into the beginning of the Great Depression."
https://www.federalreservehistory.org/essays/banking-panics-1930-31
https://en.wikipedia.org/wiki/Bank_run
Shouldn't it go the other way, where they pull from the big banks and put it into the smaller of the credit unions?
These proposed rules will include all banks and credit unions. And the smaller banks and credit unions will be the first to go under if there are bank runs. They'll probably struggle to survive anyway since they won't have staff to meet the reporting requirements. You're not going to be able to avoid this IRS intrusion by simply moving your money to a small institution.
Read the info above about bank runs. They're poison on the economy.