Treasury Secretary Janet Yellen appeared before the Senate Finance Committee in an attempt to calm fears over a volatile banking system.
Instead, she sounded like a communist apparatchik towing the party line.
Yellen’s testimony began with the Biden administration’s oft-used line celebrating the supposedly historic economic recovery.
She also declared, “our banking system is sound” and “Americans can feel confident.”
Less than a week after the second and third-largest bank failures in U.S. history.
There were unexpected moments of candor.
Unlike the multibillion-dollar Silicon Valley Bank (SVB) bailout, Yellen told Oklahoma Sen. James Lankford (R) that government refunds of uninsured deposits would not extend to every bank, only those whose collapse poses a “systemic risk” to the financial system.
Lankford expressed concerns that the “too big to fail” designation would give the largest banks an even more unfair advantage over community lenders.
Then there was this gem extracted by Idaho’s Mike Crapo.
Newsweek has more on the ongoing fallout:
To address the crisis, U.S. bank regulators announced a plan last weekend to fully insure all deposits at SVB as well as the crypto-friendly Signature Bank. This would cover all deposits above the Federal Deposit Insurance Corp.’s insured limit of $250,000. Federal officials said the plan would be paid for by a special fee levied on all FDIC institutions.
While all banks would be required to pay for the plan, Yellen said under questioning Thursday that it would not apply to every bank. She said the federal government would extend the privilege only to troubled banks whose failure would have a profound impact on the U.S. financial system. [emphasis added]
Uninsured deposits, Yellen said, would be covered only if a “failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences,” which would be decided by a supermajority of the FDIC’s board members, Yellen, and the President.
Reached for comment, a U.S. Treasury Department spokesman referred Newsweek to Yellen’s Thursday testimony, saying it spoke for itself.
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Patrick Houck is an avid political enthusiast based out of the Washington, D.C., metro area. His expertise is in campaigns and the use of targeted messaging to persuade voters. When not combing through the latest news, you can find him enjoying the company of family and friends or pursuing his love of photography.
“Uninsured deposits, Yellen said, would be covered only if a “failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences,” which would be decided by a supermajority of the FDIC’s board members, Yellen, and the President.”
Translation: “If those with deposits in excess of what was covered by FDIC were among the numerous rich Demmunist donors who had money in those failed banks, then of COURSE they would be covered!”
Due to poor leadership/management having more money in their accounts than the insured amount would cover, the taxpayers will pick up the tab for them designated by their dem friends! Elite politicians taking care of their elite friends. IMO