Local and Regional Banks Beware

The Feds have no plans to insure your big depositors

It certainly looks like the Biden regime is trying to consolidate power into the hands of a few large, well-connected banks. Why do we surmise this? All one has to do is listen to the testimony of Janet Yellen, Biden’s Treasury Secretary. During a Senate Finance Committee hearing last week, Yellen as much as admitted that the only banks that will be fully insured are the ones that she, Biden, and the other geniuses at FDIC and Federal Reserve advisory board deem worthy of a bailout. What is also shocking is that the Federal Reserve, which is supposed to operate as an independent entity, is clearly in cahoots with the White House. Consider the following exchange at the hearing when Yellen is questioned by Oklahoma Senator, James Lankford. 

Lankford: Will the deposits in every community back in Oklahoma regardless of their size, be fully insured now? Will they get the same treatment that SVB [Silicon Valley Bank] just got or Signature Bank just got?

Yellen: A bank only gets that treatment if a majority of the FDIC board, a super majority, a 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, and we made this determination with these two banks. 

Lankford: 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 merger 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 the point.”

Yellen: [pregnant pause] Ummm. Look, I mean, that is certainly something that we are not encouraging.

Lankford: That is happening right now.

Yellen: That is happening because depositors are concerned about the bank failures that have happened and whether or not other banks could fail.

Lankford: No it’s happening because you are fully insured no matter what the amount is if you are at a big bank. You’re not fully insured if you are at a community bank.

You can watch the entire painful conversation for yourself. In just a few minutes, Yellen admits that the connected elites will be protected, but the average Joe is not. This preferential policy will surely crush small community banks. A new study has already flagged 186 additional banks nationwide that are considered vulnerable and already on a watch list.  These community banks are the lifeblood of small businesses and if they fail, the middle class in this country will be decimated.

According to Zero Hedge, “If the Fed does not contain the regional bank collapse, there will be another great depression. Small/medium banks account for 50% of US commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending, and 45% of consumer lending.”  This may be a hyperbolic statement; however, it is not out of the realm of possibility.

Even Wall Street gurus know we are heading down a perilous path. Michael Hartnett, the Managing Director and Chief Investment Strategist at Bank of America Merrill Lynch Global Research, has been warning about tighter lending standards at regional banks in response to the banking crisis. He contends that this will create a small business credit crunch and lead to higher unemployment.

The Covid-19 pandemic clearly showed us how state and local governments favored the big box stores allowing them to remain open while small businesses were closed. As a result, an estimated 30% of many small businesses closed during the height of the pandemic with many of them being shuttered for good.  With the current fiscal policy of protecting only large financial organizations, this same scenario will play out as small community and regional banks will be forced into insolvency.   

Yellen also admitted that many of the depositors at SVB may be Chinese nationals affiliated with the CCP. And this is where Biden’s failed economic policies of reckless spending, staggering inflation, and treasonous business dealings have led us. Americans in Oklahoma, Kansas, Iowa, and every other state in the union are not only bailing out the billionaires of Silicon Valley and New York but also foreign nationals tied to our biggest existential threat – The Chinese Communist Party.

With the Biden family’s financial ties to the CCP coming to light, this is all starting to make perfect sense. James Comer, Congressman from Kentucky and chairman of the House Committee on Oversight and Accountability, recently revealed that the Biden family received 1.3 million dollars from State Energy HK Limited – a Chinese company. Comer also revealed on Fox News Sunday Morning Futures with Maria Bartiromo that the Bidens and China may have a whopping 11 more deals that need to be investigated. The YouTube version of this interview appears to be already memory holed and censored from the internet.

If this blatant corruption is not enough to make you dizzy, Biden’s cronies and biggest democratic supporters are making an incredible amount of wealth capitalizing on this manufactured crisis. Goldman Sachs will rake in a cool 100 million in its role to save SVB. Billionaire, David Tepper, is said to have purchased SVB bonds at 40 cents to the dollar. The uber-rich are getting even richer.

This situation is reminiscent of the bank run in the movie, It’s a Wonderful Life. The unscrupulous villain, Mr. Potter, offered to cover the shareholders of the Bailey Building and Loan. Potter called George Bailey and said, “Just tell them to bring their shares over here and I will pay them fifty cents on the dollar.” In the movie, George refused to comply and through great personal sacrifice saved the Bailey Building and Loan, which in turn, improved the lives of countless people who lived in the fictional town of Bedford Falls. We too must save our “Building and Loans” from these ravenous and greedy predators. If we don’t we will find ourselves all living in Pottersville.

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