You Are NOT Protected! (Banking Crisis Update)
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Foreign Secretary Yellin says not all uninsured deposits will be protected in future bank failures. This has way bigger implications than you would think. For those of you who have maybe been not paying attention to financial media lately, you probably might want to know that banks are blowing up and there's quite a bit of downward pressure on the economy because of what's going on in the banking sector and the government. The various branches I can't just say one of them.

but if we talk about the Treasury Secretary, if we talk about Powell from the FED, there's a couple different groups stepping into really attempt to stop the hemorrhaging and what they have done is backstop depositors. So if you work at the bank, if the FDIC takes it over, the management gets fired. If you own stock within the bank, none of those people are being protected, but people who had money in the bank. Usually you're only protected up to 250 000 and then after that you're taking on the risk of being at the right Bank In this scenario, when banks are blowing up, the various groupings of people have decided that no, we're going to ensure for everyone.

So even if you have over 250 000 if you have 250 million that is now being insured by the US government which led to a very interesting exchange that I want to share with all of you right here. Will the deposits in every Community Bank in Oklahoma regardless of their size be fully insured Now are they fully recovered every Bank every Community Bank in Oklahoma Regardless of the size of the deposit, Will they get the same treatment that Svbp just got Or Signature Bank just got Only gets that treatment if a majority of the FDIC board a super majority is super majority of the FED board and I in consultation with the President determine that the failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences. So what is your plan? That determination, right? So so what is your plan to keep large depositors from moving their funds out of Community Banks into the big Banks We have seen the mergers of banks over the past decade. I'm concerned you're about to accelerate that by encouraging anyone who has a large deposit in a community bank to say we're not going to make you whole, but if you go to one of our preferred Banks we will make you whole at that point.

Um, look, I mean we're That's certainly not something that we're encouraging that is happening right now. That is happening because depositors are concerned about the bank failures that have happened and whether or not other Banks could. Also, it's happening because you're fully insured no matter what the amount is. If you're in a big Bank, you're not fully insured.

If you're in a Community Bank Well, you're not fully insured and you you were in Signature And it was. It just barely met that threshold you were at Signature. Well, we felt that there was a serious risk of contagion that could have brought down and triggered runs on many banks and that something Given that our judgment is that the banking system overall is safe and sound. Depositors should have confidence in the system and we took these actions.
So there's a special assessment that's been done on Community Banks in my state and all banks across the country. Was there any discussion that that special assessment would only apply to the larger Banks Or was it always assumed a special assessment would cover every Bank including rural banks in my state? Um, I I think I I'm not certain what the rules are around that, um, that that's for the FDIC to determine. It has been reported publicly that Svb had a large number of Chinese investors that are there, including some that were companies directly connected to the Chinese Communist Party Will those individual, those individuals, companies, entities, and investors that are Chinese investors be made whole based on Assessments in my banks in Oklahoma? So what I'm asking is will my banks in Oklahoma pay a special assessment to be able to make Chinese investors whole from Silicon Valley Bank Uninsured investors will be made whole in that bank. And I suppose that could include foreign and foreign depositors.

but I Don't believe there's any legal basis to discriminate among uninsured I Get it? But I'm just saying my Community Banks are going to pay this additional fee. It is always fascinating to me as well. The conversation that taxpayers are being made whole in this taxpayers are not going to have any kind of consequence on this. I'm sure my Bankers are going to be very excited to know they no longer pay taxes for various reasons I find to be very interesting because this is the moral hazard that a lot of people have been talking about.

and if you have listened to yell and there and more importantly if you believe Yellen, they're only going to backstop the ones that are the biggest and mess things up like how backwards is that of we're only going to help if it could be a bigger issue. So basically, if you have a small like Mom and Pop Bank in whatever region and if it goes under and if they're like no like, we don't think there's really going to be large negative implications on the banking sector on the greater economy, we're probably not going to do this. So they're now picking and choosing who survives and who doesn't survive I Think it's a fair argument that we're ending up pushing more of these Banks to get acquired by large Banks So we're getting closer and closer to an oligopoly where they're just going to end up protecting the biggest ones and then everyone else. You're just screwed.

And he brought up an interesting point of like. so if you just take a random Podunk Bank in Oklahoma that might not be a great stress on the economy. Well, it's not going to be insured. but they did step in with Svb where you literally just had the banking like the business banking for like Chinese businesses.
So we bailed those out which is so messed up because it's one thing if you're going to bail them all out. but now you're picking and choosing who you're gonna bail out and in this scenario it could. and I hope it doesn't. You could have a random bank somewhere in Middle America that goes under and if someone has over 250 000, they're not going to be insured.

but then we're with the Silicon Valley Bank or Signature where everyone got bailed out. It doesn't matter who they were, it could have been the bank of a business that's not even in the U.S It's such a bigger moral hazard than I Thought this could even possibly get to like that's insane like it might do like am I missing something here Like it seems so illogical that I I feel like I have to be missing something right? Like it just seems so absurdly ridiculous that I like I almost don't want to believe it. like I'm just assuming that I'm like nah, like I'm just dumb like I'm not getting some aspect of the overall story because it blows my mind.

20 thoughts on “You are not protected! banking crisis update”
  1. Avataaar/Circle Created with python_avatars Gherkins Sister says:

    I utilized your trading tips and now I don't have to worry about the 250k limit of FDIC protection! Thanks!

  2. Avataaar/Circle Created with python_avatars Russell Bryan says:

    Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them

  3. Avataaar/Circle Created with python_avatars Jack Thompson says:

    What a ****show

  4. Avataaar/Circle Created with python_avatars ChiSaoMusician says:

    She sounds like a dementia patient and game show host got drunk together and then found a ton of money laying on the sidewalk.

  5. Avataaar/Circle Created with python_avatars Debra says:

    Ohh so the super majority board, Yellen and rhe current President get to decide. So in conservative voting areas and investors they'll look the other way. Rules for voting classes now.

  6. Avataaar/Circle Created with python_avatars Skippy_zk says:

    "Capitalism"

  7. Avataaar/Circle Created with python_avatars OZYMANDIAS says:

    How did you get her to reveal her true form 😳

  8. Avataaar/Circle Created with python_avatars Gideon Beverly says:

    This is what they probably should did earlier 2022 to get weak business out

  9. Avataaar/Circle Created with python_avatars Terry Bacon says:

    That's because smaller banks would never make the kinds of economy shifting moves that the big ones do. If you can provide an example where that happened and the account holders were left empty handed, please reply. This is a hypothetical question of a situation that would never happen. If a small bank goes under, there are funds available for those larger account holders over the FDIC amount (which is a GUARANTEE minimum, not the limit per se), and since there's fewer of them, that reserve fund can easily replenish all accounts at smaller banks. This current SVB situation needed help because of the wider economic impact it had, and like I said small banks don't have that problem as the money is spread out more and the investments are more diverse. If I'm missing something here, please explain. I'm moving all my money into a smaller regional bank as I speak. I'm not worried, they don't make stupid selfish mistakes. Now what I do want to see, along with covering the innocent business who lost their money at SVB, is jail time and accountability from those who made these decisions, THAT is what will restore our faith in our economic system.

  10. Avataaar/Circle Created with python_avatars Flixsymmetry says:

    The minute she or anyone from this administration opens their mouth it’s a shit show – and we have two more years of it.

  11. Avataaar/Circle Created with python_avatars macdaddyalexis says:

    Aren't the legislators elected to gov so they can pass laws to prevent these bank crises? I think it's hypocritical to be demanding gotcha answers for an issue they played a part in because they don't reform bank practices? 🤔

  12. Avataaar/Circle Created with python_avatars Pickle MeTimbers says:

    Sounds to me like the government is trying to only bail out banks they and their friends are part of. This is an attempt to force people into the larger woke companies. First our small business were attacked during c19. 50% of them went out of business. Giving more power to large corporations. Now our small banks are being attacked by our government by not providing support to them. This is all on purpose.
    I bet all those democrat banks that donated to democrat campaigns get balled out. While banks not affiliated with the democrat party suffer. Much like the train wreck in Ohio. Ohio is largely conservative so Biden and his admin ignored their need of help. It was blatant. So I don't want to hear and liberal tears. I bet if it happened in Maryland he would have provided support. When you have a party only supporting its political party and not the nation you will get a civil war. Not only is that disgusting behavior it shows the level of unprofessionalism we have in our current administration.

  13. Avataaar/Circle Created with python_avatars Hector Munoz says:

    This always happens, the phone companies did this, the banks are on the path to doing the same, auto will do this when Tesla buys Ford or GME…

  14. Avataaar/Circle Created with python_avatars doc_ineeda _win says:

    calling all apes TO PICK A DATE AND MAKE RUNS on bank and withdraw we can alway put back later lol ON SAME DAY!!! to stick it to the MAN lol

  15. Avataaar/Circle Created with python_avatars Finger Popper says:

    So, isnt picking and chosing going to create more panic and uncertainty – which is the exact opposite of the intentions / the point of bailing out SVB?

    It just seems like they're trying to prop the whole system up to avoid another 2008 but with this odd rehtoric ??? wtf???

  16. Avataaar/Circle Created with python_avatars Gregory patrick smith says:

    Myyyyy paareeecious

  17. Avataaar/Circle Created with python_avatars AK Counder says:

    On a scale of 1-care home, how senile is Janet Yellen?

  18. Avataaar/Circle Created with python_avatars brian major says:

    I'm closing my accounts at smaller banks.

  19. Avataaar/Circle Created with python_avatars chad Otis says:

    The honorable on top of her name is not earned. Deplorable human should replace it.

  20. Avataaar/Circle Created with python_avatars Chris Breneman says:

    Why not add a time limit clause? Perhaps accounts over 250k are only eligible for full protection if they haven't switched banks in the past 180 days?

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