The following testimony by Janet Yellen and Sen. Lankford was very telling. The truth came out. Based on Sen. Lankford’s questioning of Treasury Secretary Janet Yellen, Chinese Communist party investors will be bailed out. Smaller and mid-sized banks aren’t going to be bailed out, and we’ll eventually only have big banks. This moves us closer to the leftist dream of one Central Bank controlled by one party and one Central Digital Currency (CBDC).
Read the transcript, or watch the clip, or both and let us know what you think.
NO, WE ARE NOT BAILING OUT MID-SIZED OR SMALL BANKS. EVERYONE WILL RUN TO BIG BANKS THAT ALWAYS GET BAILED OUT.
Sen. Lankford: Regardless of their size, being 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 SVB just got or Signature Bank just got?
Janet Yellen: A bank only gets that treatment if a majority of the FDIC board, a supermajority, a supermajority 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.
Sen. Lankford: Right. 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.
Janet Yellen: Um, look, I mean, that’s certainly not something that we’re encouraging…
NO PLAN FOR SMALLER BANKS
Janet Yellen: “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, well, you’re not fully insured. And 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 is something, given that our judgment is that the banking system overall is safe and sound.
Sen. Lankford: 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 across the country. Was there any discussion that that special assessment would only apply to the larger banks, or was it always assumed the special assessment would cover every bank, including rural banks in my state?
Janet Yellen: I think I’m not certain what the rules are around that. That’s for the FDIC to determine.”
WE’RE BAILING OUT CCP INVESTORS
Sen. Lankford: It has been reported publicly that SVB had a large number of Chinese investors. There are, including some that were companies directly connected to the Chinese, the Communist Party. Will [it include] those individuals, those individual companies, entities, and investors. [Will] 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…”
BUT IT WON’T COST THE TAXPAYER A THING
Janet Yellen: From Silicon Valley, bank investors will be made whole in that bank, and I suppose that could include foreign depositors, but I don’t believe there’s any legal basis to discriminate among uninsured.
Sen. Lankford: I get it, but I’m just saying my community banks are going to pay this additional fee. It is always fascinating to me…that taxpayers are being made whole in this. The 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.
Facing a crisis of confidence in our banks, Janet Yellen took a verbal jackhammer to any faith left. Not only did she regurgitate Bidenian whoppers about the “historic economic recovery,” she caused a quake with THIS. WATCH EVERY SECOND. pic.twitter.com/vi7SyfR1Zf
— Dagen McDowell (@dagenmcdowell) March 17, 2023