Small to medium sized banks along with credit unions are the best vehicle for Main Street USA small businesses. Somehow in all the conversations about banking customers, this little factoid is seemingly, perhaps purposefully, overlooked. WATCH:
Small to medium sized banks along with credit unions are the best vehicle for Main Street USA small businesses. Somehow in all the conversations about banking customers, this little factoid is seemingly, perhaps purposefully, overlooked. WATCH:
Let. Them. Fail.
The failures aren’t the contagion, the bailouts are.
I agree with ‘let them fail’ for these two, and any other woke managed phony baloney bank that comes along. However, the fools in charge in washington will have COMPLETE control over the economy then we’re down to a tiny handful of behemoth institutions. We must hold onto our regional banks if we are to have any hope of freedom and self determination in the future.
If we don’t, the 6 biggest become the 4, and then the 1 and then we’ll be stuck with the CBDC.
But, the exciting news is the electromagnetic field strength of the planet is dropping and a CME will take out ‘our’ modern way of life any day/week/month now. I am now less inclined to worry about the idiots in charge as the ‘end’ draws near. We long ago converted the rest of our dollar assets into physical assets and are doing our best to work on our physical skills.
Where are you getting these predictions? CMEs are not like clockwork. A Carrington-size event is guessed at coming around about every 500 years. But there’s no doubt it would change the act around for the entire world.
Bailouts only produce more future risk taking. It’s called moral hazard. Bank managers will continue to act recklessly if there aren’t any consequences for their bad decisions or poor management.
Exactly.
The death of such banks is the healthiest move, pour encourager les autres.
After 12 years of artificial near 0% interest rates by the Fed, everyone has been forced into either watching their money’s value decrease due to inflation, locking it up in .1% bonds, or putting in the risky stock market.
None of these are good options, especially for savers.
This bank didn’t count on the Fed jacking up interest rates faster and higher than since 1981. Nor did I, and got screwed by it while trying to be conservative.
The Federal Reserve is the problem. It’s completely illegal too. Read the Constitution. Only Congress can coin money.
Federal Reserve is owned by private banksters.
#EndTheFed
Part of running any institution or corporation is risk management. Did any of them think of the consequences of having all their reserves in bonds when it should have been apparent that interest rates would certainly rise when inflation took off.? QE and Covid money printing should have been a wake up call.
I had someone try to convince me to invest, because of my age, 40% of my savings in low yield government bonds. They said I should have a balanced portfolio to minimize losses in a financial crisis. I told them that formula stopped working with never ending QE. I’m no financial wizard, but I saw inflation coming as a ruling class plan to repudiate private and sovereign debt. It obvious when they pretend that inflation isn’t a result of their own policies. It’s the hidden tax that screws those who can least afford to be screwed.
We MUST HAVE a constitutional way for us to have stable currency, in the absence of a central bank. Remember, Germany didn’t have a central bank during the Weimar Hyperinflation.
Simply to “coin” money is not a solution. And we need MUCH STRONGER RESTRICTION on the processes by Congress (good luck with that).
I don’t know the answer. Catherine Austin Fitts might have a good solution. And please don’t talk about a “gold standard” as a panacea…It never has been, and never will be.
It’s a lot cheaper to bailout smaller regional banks than to have a too big to fail bank bailout. The 5 largest banks have about 180 trillion dollars in derivative holdings. And O’Leary talks about small banks betting it all on black. Oh yeah, it’s much safer to go with 5 too big too fail banks. sarc.
https://www.usbanklocations.com/bank-rank/derivatives.html
All derivatives must die. No money for derivatives, they were gamble and if they go down you lose, to freaking bad.
One of the most important provisions of Dodd-Frank was that all derivatives would be traded on an insured, regulated exchange, like the CFTC for commodities.
Never happened. Every couple of years, the Swaps & Derivatives Ass’n. goes before the Senate Banking Committee, and begs for a “few more years” to implement it … For 13 years so far.
TPTB have NEVER wanted to fix this. We have always been the chumps.
Thank you for details I didn’t know about (and struggle to understand, finance is not my strong area. I have other areas where I intuitively hone in on areas to study, and immediately grasp, but in this domain I am a slow learner.
This is why I come to the Treehouse. I learn so much here. Thanks again Sundance, Moderators and commenters for all you bring to my understanding
I come to the treehouse alone,
While the dew is still on the roses…
Yep, same here.
Most small banks are forbidden from having derivatives on their books, minimizing risks. They may have a small amount of MBS, highly rated, to provide consistent income, but in small amounts that wouldn’t jeopardize the bank if they failed.
The big banks are loaded down with TRILLIONS in derivatives, many highly risky. Not safe.
I want small banks. I do not want a big bank based in another country. I do not want the government telling me where to bank like the do in China.
Yea…nothing more in life appeals to me than a bail-in.
The O’Leary interview was, for the first time, a complete mush by TC. He completely missed the facts of what is unfolding, didn’t seem to understand how the banking system operates in detail. He provided no counter whatsoever to O’Leary’s assertion that concentration of demand deposits/savings accounts in mega-banks is an inevitable consequence of new technology; the specific argument that regional banks are archaic and duty bound to fail.
No discussion at all, really, on the prime movers of fantastic money creation hocus pocus (MMT, gov’t spending) and consequent impossibly engorged aggregate private/public debt relative to GDP (i.e., income to pay off the debt).
I got the impression Tucker was rather taken aback by what O’Leary was saying.
So did I.
tucker always seems taken aback, kinda like a resting bitch face deal.
vulgarian: Tucker’s got a great gig going. He will never, ever get to the bottom of anything.
Could be. My take was he didn’t see openings worthy of rebuttal.
Just an overall gut feeling that he was not prep’d well for this particular interview – i.e., command of the subject matter.
Phillip, I can scrimp, save and budget, like my parents did before me; but these convoluted banking and government contortions are baffling certainly to me and likely to Tucker also. I am not stupid and neither is Tucker C. However, a lot of us are out of our depth in these manipulations. I understand I am being ripped off, and lied to using bafflegab, by people who don’t give a d—- about my wellbeing, but how can people respond?
Wonder…I’ll concede the financial field generates new instruments on a regular basis that are hard to understand; further, that there are a lot – a lot – of variations on the basic theme “I’ll buy. You Sell.”
I realize this is glib advice: one has to learn how the game is played; don’t trust the players. If your personal risk calculus leaves you with a gut “I’m in over my head” – find something else you are more comfortable with.
I agree whole heartedly with your deeper point….many of us don’t have the wealth to play the game but have to store what cash we have some place – preferably not as a pretext for banker carry trade. It would be nice to be able to invest enough trust in the system that the value of our deposits doesn’t devalue each second of every day; that the deposits won’t be unilaterally seized by the banks/government under the auspices of the emergency context of the moment; that the government intercedes with alacrity to protect our financial interests as well as those of the wealthiest.
What can I say? The system is fixed/manipulated in many respects! Part of the risk calculus I guess.
The small regional banks are the source of the risk with managers swinging for the fences? Really? AIG? Lehman moment? Bear Stearns? Credit Suisse and even incidents involving the JPMorgan whale etc.? Citigroup in 2008? Weren’t the causes of the past and current crises driven by the excess leverage and risk taking by these large institutions? I am not really aware of any financial crises driven by small regional banks. Not only do these small and regional banks provide the backbone to small business, their credit review process is largely driven by local bankers looking their customers eye to eye as opposed to large banks buying and flipping loans for short term fees.
Errr….yup!
I have no proof, but this all sure seems engineered. At the very least, it smacks of the uni-party tending to its donor class.
Stagflation about to get a lot worse IMO.
Agree. We bank at our small town bank owned by a local woman. She lives right down the street from where her bank is located and she donates millions in our area. We pay a bit higher interest on our loans but we are supporting our local economy doing so. This interview reeks of a set up trying to get people to move money from their small banks to the “too big to fail” (but are failing anyway) banks. Our local banks are begging people to borrow money as they have millions to loan but they are picky who they loan it to because it is THEIR money and they don’t like risky ventures.
rovide the backbone to small business, their credit review process is largely driven by local bankers looking their customers eye to eye as opposed to large banks buying and flipping loans for short term fees.
And its an INVESTMENT IN THEIR COMMUNITY, in a real business or home, and it matters because we all live in that area. Their kids go to school with ours.
Not just a commission check.
Let them fail. OK. Shareholders wiped out. 93% of deposits wiped out. Employees at Etsy, Roku, and many others are laid off. The people hurt will be the little guys. What needs to happen is reduce the size of banks and reduce the size of big companies. The problem is Too Big To Fail.
No derivatives. At all.
I like Kevin but he’s always struck me as an opportunist. We all know what we see happening here: a totally avoidable crisis being manufactured to drive the creation and adoption of CBDC.
Take the COVID mass psychosis and multiply the pressure by 1000x. They drove mass adoption of a fake vaccine through fear of a disease that was not really much of a threat. If people were willing to surrender their bodily autonomy for the promise of getting to go to the restaurant, what will happen when the Thought Police can actually freeze their bank account?
We all don’t know. 95% of the public doesn’t know. Just those of us that are in tune with the politics of all this.
Which is why 70% of the country just says can’t we go along to get along and then are surprised when the crappola hits the fan. I see it all the time, I’m just tin foil hat wearing extremist.
The government is missing all the control they had over Americans for the past few years.
SOME was done thru creating a fear of the virus, but some was done thru instilling another fear; COERSION; no jab, no job mandates.
No jab, no entrance to various venues.
This, after completing the Socialisation of Healthcare, without CALLING it “Socialisation”.
A rose, by any other name, .
CBDC is similarly, the final step in an already Socialisied Banking System, although again it’s not CALLED that.
If you receive SS, or ANY Govt. payments, they will be in CBDC.
Any paycheck, any payment that you receive.
And, anything you pay FOR, as well. Cash will be converted, by a certain date after which it will be “worthless”.
They will heavily “tout” all the advantages, SECURITY for instance,…the CONSUMERS security, of coarse.
But they can not leave you any alternative BUT to use CBDC, if they want to insure acceptance.
I am not convinced they will succeed, but they will most certainly TRY.
They may try but I can guarantee you there are a lot of seniors who can minimally work a smartphone or iPad who would not be able to navigate a digital currency. They need to complete the die-off of the oldsters before CBDC is completely accepted.
Unfortunately, “they” do not care about whether the oldsters “get it” or not. Time to construct a parallel economy.
Kim Dot Com ran a Twitter Space last night discussing the crisis, and said we all must give up our national currencies for the good of mankind. So the only way forward is to embrace what we fear and learn to love DCs? These decisions need to be negotiated by a foreign agent like Obama, he says 😑
That jackwagon is still around?
The CDC was able to link the masks and vaxx to the political and moral ideologies of the left. Once progs felt they were under duty to express their ideology using masks, distancing, closures etc the rest happened on its own. These people are zombies and will do AnYtHiNg their groupthink tells them.
Yes, Sundance — I was waiting for him to mention credit unions, which are usually pretty solid and local, and don’t seem to have the high-roller risk of the big banks… But not a word.
It’s worth mentioning that credit unions (state or federally chartered) are prohibited from investing in stocks. They are however allowed to buy corporate bonds which can be very risky. An example would be the investments made by credit unions in Enron corporate bonds.
Talked to one of the higher ups at one of those small/regional banks this week. About 75% of their deposits are within the insurable FDIC limit. So far, not much concern from them at the tremors in the market, the main risk factor is if the local economy completely implodes, since that’s where most of their loan portfolio is (mainly established local business, not a lot of startup/exotic/risky elements).
The absolutely strangest thing about the Brandon years so far is that at a glance, it’s hard to notice anything noticeably amiss on Main Street here. Aside from seeing a few mask zombies here and there, 2022 and 2023 have looked much like 2019 did – most storefronts are occupied, new construction/businesses keep popping up, few are closing. Prices have gone up, but so far not by enough to induce sticker shock.
People are trying to go back to normal, and to forget about Covid.
Have you been to L.A? They are clinging to it like a Japanese soldier after Hirohito s surrender. C19 gave them a cause.
It’s much easier to be a big fish in a little pond than a little fish in a big pond. They will do OK as long as they don’t get greedy. I had a thought from this comment. I wonder how many healthy small and medium banks will have crooked characters forced on them for the sole purpose to go wild on the lending side to make the bank fail. Then be allowed to get out free once, “my job here is done”.
I think based on experience it would be harder than at a large bank. This bank is pretty small in the grand scheme of things, all the executives seem to know their staff by name, most have been there for a long time, and they are far more inquisitive about suspicious-looking transactions than any of the larger banks I’ve dealt with.
Oh, like the feds requiring smaller banks set up branches in protected class neighborhoods….and force lending there?
It’s happening right now.
Sadly, the local bank I use is a small regional bank ~and~ it has derivative exposure. Not a little, not a lot, but somewhere in the middle of the list of regional banks with that exposure. I was pretty surprised to find it on that list, truth be told. We keep very little cash there since I made that discovery as a defense against ‘bail-ins’.
Same with my southern regional bank. I just found out about their “derivative exposure”. Yesterday I moved more than half into my credit union.
Sometimes a local bank will have some top-rates MBS on their books, without delinquencies, to assure stable interest income to the bottom line.
If you make an appointment with the branch manager to discuss these things, be sure to ask about delinquency rates.
Also, you can look up the bank’s financials online at the bank website, or http://www.bankrate.com. And you can get state ratings as well.
With fractional reserve banking this will happen, right! We all know that, it is an iffy proposition. Using other peoples money to make money and the idiots at SVB were not good at hiding the short on cash thing from their customer, plus not to good at making money either.
Just read that the CEO of SVB was so distaught after cashing out his stocks prior to his banks colapse and then the Fed takeover, he decided to take a vacation to Hawaii. What a stand up guy. There must have been a Trans stripper show he had to go to with the kids….clown show.
this has been discussed and
pondered by banks and credit unions. for at least the last couple of years , there trying to increase deposits and some have given out minimum inbank credit scores to increase there business, they’ve also
done this to fight the auto loan industry who pay kickbacks to dealers for using their loan companys.
Why would anyone have money in a bank?
My better half and I closed accounts over a year ago. We have 1 account and its always just to pay bills. These people hate your guts. Unless you turn tranny.
I don’t trust this guy.
Me either. Phony snake in the grass.
So their plan is to take out all the credit unions and small banks, so that we are forced to use the big banks, so that they can implement CBDC.
I despise the “leaders” in charge. What absolute train wrecks.
What does that mean to me? Get used to bartering and working outside “the system”. It’s quite a challenge.
Mr. Wonderful totally dodged addressing the “personal competency” (aka “complicity”) aspect of this man-caused financial crisis. He knew that is a minefield. If Tucker didn’t know before he asked the question, he knew immediately after.
All Treepers need to read this and understand what is going on. Fed’s Powell is more MAGA than you might think. The little banks are not in danger, far from it. My credit union is now paying 3.25% on savings. This is MAGA. https://meaninginhistory.substack.com/p/tom-luongo-weighs-in-its-a-davos
I wonder what organized crime will do with a CBDC. Convert to another country’s currency; corrupt central bankers to a greater extent?
Their anonymity could be almost eliminated. Who knows?
Scary version? Today, government *is* organized crime. They’re one and the same.
Small and regional banks are Main Street banks.
The war on Main Street USA by the Cabal remains ongoing.
So I guess this is the new morning procedure here – Wake up in the morning /Go to CTH / See picture of Tucker Carlson with his puzzled -quizzical expression pondering the Topic Du Jour / Have my coffee / Have more coffee with a side of unsweetened Fox skepticism….
his little boy wide eyed look
and most are falling for it
but I understand
as he is the only one covering some issues
however, it is always only a small sip of information
the question is –
is he covering MAGA in order to dupe us into thinking he is MAGA?
Then when the rubber meets the road he does a left turn?
I know my answer
After his treatment of Sydney Powell I will never trust him.
I agree.
And at some point, I may state at very long length why Tucker Carlson is neither all that important or helpful to the deeper conservative cause, and to the battle presently raging for the future of America, and humanity generally.
But not today.
Tucker’s Lucy and the football moment with J6 tapes red-pilled any one who was still giving him the benefit of the doubt.
Will be many Tucker fans who still believe, because at least he speaks of the verboten topics. But is always a just a tease brushing past the real meat of things.
I agree , the rubber has met the road IMHO , he won’t need to do a left turn , just slow turning donut circles to keep ‘the folks” ( to quote a former Fox famous Egotist) interested and distracted….
I’ve used the word “folks” for decades. And I’ve also used the term “circle back” for decades as well.
And I’ll keep using them, even though they have been hijacked by others who have soiled their meaning by their actions.
I wasn’t referring to you , didn’t see yours – referring to the great Bill O’Egotist and his famous term that he used ‘the folks” all the time and the imagery is not ‘circle back (?) ‘ meant doing pointless donut circles as in driving for ultimately pointless activity …. Anyway Going to have more coffee
Yes, completely despicable.
I sat next to a banker flying back from a family reunion. He told me it would all come crashing down by June. Credit Suisse has 125 Trillion in derivatives, BOA about the same. He told me your money IS NOT SAFE in the banks. He was very somber and sees no way out other than collapse with the Feds picking up the pieces which is the plan.
It’s time for the return of Glass Steagall or something like it. At that point the little banks don’t have to swing for the fences. By separating out the various kinds of banks, investment from depository, your allow banks to compete on a more equal footing and it allows regional banks to invest in the local economy without the pressures that Mr. O’Leary was alluding to.
This was a thing that P. Trump promised in 2016. Finding that the leviathan was just too entrenched and obstinate, what P. Trump DID DO was the largely de-regulate the regional and local banks, so they could compete.
Every move the tyrants make is to take power and representation away from The People, from US.
I’m each gave an interview the other day on CNN that was more honest. He effectively said we would end up with Government controlled banks and we would only have about six choices. He said this bailout was a catastrophe. Now he sounds like a shill for the Government. He was probably threaten by the regime and caved. He likes his expensive wines, more than he loves his Country.
He’s Canadian.
Okay; so he likes his wines more than his country of Canada. “Mr. Blusterful” spends an awful lot of time in the US
If you like what Amazon and Walmart did to small towns and small businesses, you’ll love what the government is doing to small banks. (paraphrased)
I got exposed to TV for a few minutes this morning
In a waiting room
Michael Cohen is sniffling to George the midget about Trump and Democracy
Or something stupid.
I shut it off in ’17 and 6 years later it’s still the same garbage down to the SAME LOSERS crying about the SAME THING!
how do people Subject themselves to such abuse unless thier brain has been washed!
Wow, nationalizing banks… first… I thought the government would nationalize oil & gas first, then transportation.
When they implement CBDC they control us completely. That’s the end game. Everything will be available as long as you download the app (or eventually just use your implanted chip) and comply. One day you’ll go to the grocery store which will admit you with an app/chip, allow you to scan each item you purchase with the app/chip (watching you the entire time – no stealing allowed), and will check you out and charge your CBDC account automatically. There will come a day when you will be denied entrance because you haven’t complied (e.g. turned in all your previously legal firearms). What isn’t illegal will be rationed. The brainwashed will beg for this control and “safety”. Create the crisis, provide the solution. Alinsky Rule #12.
andy soyboy speaks this am… cnbc = msnbc = nbc = our worst enemy.
The left won’t be happy until the federal government has complete control over all American banks and all currency, including crypto. IMO, controlling crypto is their #1 goal. Once they control the banks and digital currency, they can take your money at any time and for any reason and there is not a damned thing you can do about it. The leftists who are cheering this on are cheering for their own demise and they’re too stupid and gullible to even realize it. They think it could never happen to them just because they vote Democrat.
There is precedent post-Revolution where significant masses of citizens accepted Communist rule and adapted to the ‘comrade citizen collective’ model to survive, and did.
I caught the tail end of it in the early 90’s seeing how citizens adapted to new-found purported ‘freedom’. Some relished it, some hated it and preferred the ‘security’ of Communism. One thing I did note was the people I visited and places I stayed were converted to ownership from occupancy.
Forex, the quite spacious apartment in the building behind the then new McD’s in Odessa was given to the lady I was dating by the government.
Nothing special, she’d been living in it before Communism ended with her children and it became hers afterwards. Even with such gifts life was hard. As a doctor she earned a pretty good wage, 150 bucks a month, but poverty was still tugging at their elbow. She missed Communism. It was more secure in her perception for her family. OTOH, young people I was around were glad for it to be over.
My bet is there is a diversity of such citizens here in the U.S. as well. Many will embrace ‘you will own nothing’ in trade for consistency and security and being ‘taken care of’. It’s already happening.
“Small to medium sized banks along with credit unions are the best vehicle for Main Street USA small businesses. Somehow in all the conversations about banking customers, this little factoid is seemingly, perhaps purposefully, overlooked.”
Absolutely!
And trustworthy alternative over-seas banks.
Yet, this interview was all about allowing the BIG 4/5 to win out at all costs. WHEN that occurs, Main St USA is GONE, forever.
NOT doing biz with Wells, Morgan, Chase, BOA, Citi….NOT….How many fines has Wells endured….they are abysmal at customer relations and wrought with fraud. BOA allow/frontrunner on illegals banking in USA and allowing all the mega $$ go to Mx. NO thank you.
I love my local community bank and credit union. And, both are strong and resilient and not in danger of closing nor do they want to ‘merge’….GET govt out of this scenario.
As this conflict deepens, folks should consider getting conversant with the alternative economy that doesn’t rely on the monetary system.
It’s not new; been around for decades. Not as convenient and perhaps not as profitable but sacrifices can be adjusted to in time of war.
Sounds harsh but we’re seeing a lot of undeclared war around the planet. Not saying the word doesn’t obviate the actions. Embrace the real.
What possibly will Tucker Carlson do after this?
He’ll stay in his “safe lane “ regardless
How has he stayed in the “safe lane”? He’s reporting on things that the pundits on his own network won’t touch. Who else, at Fox News, has been talking about rigged elections and being against any US involvement in the Ukraine war? Most of them will call you names for suggesting that the 2020 election was rigged, even when you show them the mountain of evidence that is there for anybody to see.
The Tucker-haters are out to get Tucker – no matter what he says or does it will never be enough. How many people would admit they were wrong and have seen the light. Isn’t that what we want the left to do? Yet when they do, we savagely attack them.
The left May admit they were wrong, but it’s always with a proviso or disclaimer AND they still go back to their abusers. Sort of like going to confessional and saying you robbed a bunch of people, saying a Hail Mary, absolved of your sins…and walking out the church door and robbing the person walking in the church door.
And they always excuse their stupid/heinous actions because their “hearts are in the right place”, sanctimonious crap.
Yes, some people want to hold others just finding their way thru being red-pilled, to an impossible standard. Just disgusting.
You said the magic words “Fox News” – no hating /just a realist – repeat those words “Fox News “ …
“TOO BIG TO FAIL” bailed out all the Big Banks. O’Leary shouldn’t be on Tucker because he is talking his Book, has a dog in the game.
The single most important problem in the U.S. Banking/Financial System is TOO MUCH POWER IN TOO FEW HANDS.
More Banks, less control of people’s live. Less corruption, including Government corruption. If 1 bank fails, let it go.
Small regional banks support small business. They pay actual interest on their CD’s and give loans at low rates to purchase a car. They are going to save the big guys and destroy the small banks and small business owners who use them. And we are paying for it.
Steps to eliminating small banks and credit unions:
(1) Blame SVB’s collapse on 2018 changes to the Frank-Dodd (Wall Street Reform Act)
(2) Blame Pres Trump for those 2018 changes
(3) Return Frank-Dodd to its original 2010 form
(4) Wait a bit —as small banks and credit unions fold under the burder of the 2010 version of Frank-Dodd
(5) Solidify a gov’t partnership with the big banks w FedNow (June 2023 rollout) and then CBDC
(6) Without small banks, loans for the avg person or sm business dry up
(7) Main street will have nothing and be happy
.
In 2010, the Frank-Dodd bill was Congress’ solution to prevent another 2008. The hefty regulatory burdens of the 2010 bill, while affordable to big banks, were simply too expensive for small banks to bear.
In 2010 there were over 8,000 small banks. By 2018 that number had dropped by several thousand as the small banks folded. The original 2010 Frank-Dodd was literally killing the small banks.
In 2018, Barney Frank and other congressional democrats joined with republicans to make adjustments to Frank-Dodd that would preserve the gov’t ability to step in to deal with issues of stability while making it possible for the small banks to survive
–both Dems and Repubs voted for it.
This past week, Barney Frank (former Dem Rep) came out and said that the 2018 Frank-Dodd changes played no role whatsoever in the SVB collapse.
So next step for Biden?
I expect to see a push to return to the 2010 original Frank-Dodd under the false premise that it would make the system more secure. What it would do, is eliminate the small banks and credit unions.
Kevin O’Leary is full of crap…
The Silicon Valley Bank and Signature Bank played for the “fast money”. They dabbled in progressive causes to provide political cover for the monetary games they played in. If you dig a bit, you will find dirty money mixed in with the fast money.
When interest rates started going up, everyone knew to hedge their bets. These banks were in such a shape that they could not. These banks expected to be bailed out when the time came. Dirty money made some calls and the Uni-Party delivered.
On to the next fraud. Commentary by O’Leary and Cramer…
With O’Leary on… I’m thinking Carlson did something that got his wings clipped…
https://archive.org/details/illicit00mois
Funny how our government regulates, and oversees the banks, then takes control of them when they fail, but can’t do the same with their own government spending!
Too bad the banks can’t just print more money as needed, like our government does! There is going to be a day of reckoning, and it’s not going to be pretty!
Breaking up the 6 gorilla banks might be a tad more logical in my simple mind.
Like limited federal government, there should be limited private central bank influence as well.
Small banks and credit unions are likely fine for local small business and consumer needs. Part of the problem becomes how to manage large scale regional investments and international trade after 100 years of central bank influence.
Can the US treasury which is often highly partisan develop the skill sets, capacity, ethics, morality and obedience to the US citizen and constitution to oversee these large regional or national projects as well as execute an international banking system?
In other words, can the Treasury stay away from wokeness and focus on the economic needs of the citizenry without the stupidity of fake climate change, blackmail and bribery that has gone on for the past 100+ years?
I was in banking in 2008, am very familiar with fractional-reserve banking, so I was watching the FDIC website on 12/12/2012, when THE DEFINITIVE statement on bail-ins for SIFIs was published, as its final rule.
Any bank deficiencies, in case of a failure, were to be bailed in by, 1) bank bondholders, 2) bank stockholders, and then, 3) bank depositors.
From then on, depositors became “unsecured creditors” of the banks, and if it took all your deposited money to stem the failure, you would get “bank stock” in return, on that zombie bank. RIGHT THERE IN BLACK AND WHITE.
WHY? BECAUSE BANKS WANTED TO CONTINUE TO BE ABLE TO BE IRRESPONSIBLE WITH YOUR MONEY, and STICK YOU WITH THE BILL.
The FDIC is funded by payments by the banks to the FDIC. And they didn’t want to pay ANYTHING.
So here we are. Biden DOES NOT HAVE THE AUTHORITY TO DO ANY OF THIS, but he will.
God curse his soul.
Not sure why anyone should be listening to this shill. As I remember, he was a shill for the FTX disaster for a fee of $15 mil.
The FDIC can only cover 1.5% of all bank deposits as of 2020:
FDIC deposit insurance fund (percent of insured deposits) and the assessment rate (basis points)
The reason the smaller banks need to go away is the same reason all these hospital systems need to consolidate into larger systems: the government can’t control all of them the way they need to with so many smaller operations active, so they create great financial incentives to merge together through policy change. No one is voting for this policy directly. It’s all un-elected government policy makers. They run this country and most elected officials are glad to let them.
The goal here is to create the illusion of private enterprise in health care, banking, energy, etc while all the time actually running these industries like they run Big-Tech. It’s Economic Fascism.
I transistioned my businesses from big banks to regional commercial banks, post 2008. All the big banks had terrible customer service and were constantly hawking gimmicks.
This fake administration has targeted small business Kulaks for liquidation.