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2023-03-18 Government Corruption

Janet Yellen's Policy Would Destroy Small US Banks While Bailing Out Chinese Depositors, Experts Say

[Daily Caller] Treasury Secretary Janet Yellen’s recently announced policy to safeguard all uninsured deposits at failing banks deemed to be a "systemic risk" to the U.S. economy would destroy smaller financial institutions while simultaneously bailing out Chinese depositors, experts told the Daily Caller News Foundation.

Yellen, alongside the Federal Deposit Insurance Corporation and Federal Reserve, announced Sunday that all uninsured depositors who held accounts at the now-defunct Silicon Valley Bank (SVB) and Signature Bank would be fully covered, adding that "decisive actions" were needed to "protect the U.S. economy." SVB was particularly popular among Chinese tech startups, as it provided easy access to U.S. investor funding, CNBC reported. (RELATED: Silicon Valley Bank Parent Company Files For Bankruptcy)

SVB’s stock collapsed last week amid numerous customer bank runs following the institution’s disclosure of a $1.8 billion net loss on asset sales on the back of high interest rates, forcing regulators to shut down the bank. Just two days later, Signature Bank, a premier lender in the crypto space, was closed by regulators due to "systemic risks," CNBC reported.

A bailout of uninsured depositors at the collapsed banks benefits the Chinese Communist Party at taxpayers’ expense and could lead to stricter regulatory controls that smaller U.S. banks would be unable to withstand, experts told the DCNF.

"It’s absolutely atrocious that we are yet again, using taxpayer money to bail out the CCP," E.J. Antoni, research fellow for Regional Economics at The Heritage Foundation’s Center for Data Analysis, told the DCNF. "And so now whenever the government has these knee-jerk reactions, we end up sending dollars where the American people would not like them to go."

Posted by Besoeker 2023-03-18 05:52|| || Front Page|| [11134 views ] Top
File under: Commies

Small banks and small family own hardware stores and businesses. Is there a pattern developing ?

Chinese vending machines, they're everywhere !

War with these people? Most unlikely.
Economic and political takeover? Already in progress.

Posted by Besoeker 2023-03-18 06:02|| 2023-03-18 06:02|| Front Page Top

#2 It is a lot easier to control, nationalize, leverage to circumvent individual rights… 3 Or 4 companies in an industry than 100’s. See cloud computing, social media, political parties as good examples.

Posted by Airandee 2023-03-18 10:30|| 2023-03-18 10:30|| Front Page Top

#3 Quite frankly I don't care who the depositor is or where he/she/it is from. They need to be made whole. If you really want to encourage bank runs by plummeting trust & confidence in the banking system, then treat depositors like crap.

Posted by DooDahMan 2023-03-18 10:36|| 2023-03-18 10:36|| Front Page Top

#4 ^ To the $250K legal limit, yes

Posted by Frank G 2023-03-18 10:46|| 2023-03-18 10:46|| Front Page Top

#5 Her policy has a time window that maxes out at two years.

Posted by Super Hose 2023-03-18 11:09|| 2023-03-18 11:09|| Front Page Top

#6 Place I visit often, had a mom and pop themed souvenir store. Visited their last year, out of business sale, couple Chinese walking around with cameras like a real estate scout, not tourists.

Now, they sell crap and I have yet to see anyone in the parking lot. An actual eyesore.

Posted by swksvolFF 2023-03-18 11:30|| 2023-03-18 11:30|| Front Page Top

#7 They announced it would not cost taxpayers, only the innocent banks which would have to pay increase amounts to the the Federal Deposit Insurance fund, to cover the payments to depositors not authorized by previous rules.
This would give the Treasury a windfall. It will take over the banks and book a charge to the treasury of the mark to market value, which includes the loss; will not actually pay anything, and sell the bonds when they mature, at face value
The losers will be the banks that have to oay more to the Federal Deposit Insurance Corp to recoup payments to the uninsured depositors.
This will of course weaken smaller banks which will have to pay for the mistakes of others..
That those others happen to be big donors the the
Democrats who would love to have more banks similarly fail is a mere coincidence. i

Posted by By now 2023-03-18 11:34|| 2023-03-18 11:34|| Front Page Top

#8 What Frank said at #4. Anything over that is cheating the rest of us.

Life is not without risk.

You think you're safe buying ten year government bonds at one percent interest? No, you're not. Stupidity is never safe.

And all these depositors who thought they'd be safe just putting their fortunes in the bank instead of investing in stocks, real estate or business ventures? Too bad.

Remember the story Jesus told about the three slaves whose master gave them talents (money) and then went on a trip? From Matthew 25:25: The slave who was given five talents traded with them and doubled the money. The slave who was given two talents doubled that money. But the slave who was given one talent buried it in a hole that he dug in the back yard. Upon his return the master was pleased with the first two slaves and rewarded them. But not the third. "You wicked and lazy slave," said the master on his return. "Throw him into the outer darkness where there will be weeping and gnashing of the teeth."

That's not the whole story but you all know where you can read it for yourselves.

So this story is as old as the Bible. The wrinkle now is the gang of crooks that run our government who will make us pay to rescue the wicked, lazy slave from his own folly. Not only that. They are setting a precedent in which taxpayers are on the hook for all the wicked, lazy bankers in the country and all of their wicked, lazy depositors. And what's the point in FDIC insurance, what's the point in playing by the rules if Uncle Sugar will bail you out anyway?

Finally, how do Biden and Yellen get away with giving our money to failed banks without Congressional approval?

Posted by Abu Uluque 2023-03-18 13:22|| 2023-03-18 13:22|| Front Page Top

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04:20 Grom the Reflective
03:27 trailing wife
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02:47 Grom the Reflective
02:39 Seeking Cure For Ignorance
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