Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

The Banking Crisis Has Produced Extraordinary Testimony about Land Mines Lurking in the U.S. Banking System
Wallstreet on Parade ^ | 5/18/23 | Pam Martens and Russ Martens

Posted on 05/18/2023 9:20:06 AM PDT by CFW

On Wednesday, March 8 of this year, the holding company for the federally-insured Silvergate Bank announced it was winding down the bank. It had little choice but to do so. It was experiencing a bank run and had incinerated its reputation by focusing on deposits from crypto companies, including those majority-owned by indicted crypto kingpin, Sam Bankman-Fried.

According to testimony from the Chairman of the Federal Deposit Insurance Corporation (FDIC), Martin Gruenberg, before the Senate Banking Committee on March 28, “in the fourth quarter of 2022, Silvergate Bank experienced an outflow of deposits from digital asset customers that, combined with the FTX deposits, resulted in a 68 percent loss in deposits – from $11.9 billion in deposits to $3.8 billion.”

Silvergate Bank’s primary regulator was the San Francisco Fed.

Two days later, on Friday, March 10, Silicon Valley Bank was put into receivership at the FDIC following an unprecedented bank run that saw $42 billion in deposits leave the bank on just the day of March 9, with another $100 billion in deposits queued up to leave the next day – which would have represented the vast majority of its deposits taking flight in 48 hours. That testimony was delivered to the Senate Banking Committee on March 28 by the Vice President for Supervision at the Fed, Michael Barr.

Silicon Valley Bank’s primary regulator was also the San Francisco Fed.

(Excerpt) Read more at wallstreetonparade.com ...


TOPICS: Business/Economy; Crime/Corruption; Extended News; Government
KEYWORDS: bankcrisis; bankingcrisis; deposits; feds; interestrates
Many economists and financial "experts" have deemed any banking crisis over and therefore investors have nothing to worry about. I think it is just getting started.
1 posted on 05/18/2023 9:20:06 AM PDT by CFW
[ Post Reply | Private Reply | View Replies]

To: CFW

Related article:

https://finance.yahoo.com/news/feds-logan-data-does-not-130142411.html

“Fed’s Logan: data does not yet show June pause is appropriate”


2 posted on 05/18/2023 9:21:09 AM PDT by CFW (old and retired)
[ Post Reply | Private Reply | To 1 | View Replies]

To: CFW
Land mines? How about good, old-fashioned corruption. Was. Is. Will continue to be until the corrupt are cleaned out of the system.
3 posted on 05/18/2023 9:56:22 AM PDT by Worldtraveler once upon a time (Degrow government)
[ Post Reply | Private Reply | To 1 | View Replies]

To: CFW

Only the little banks need worry.....

The rest are too big to fail and too big to jail. Privatize profits and publicize losses - it’s a can’t miss business plan for BofA, JP, Goldman, Wells Fargo, and Chase.


4 posted on 05/18/2023 10:06:02 AM PDT by volunbeer (We are living 2nd Thessalonians)
[ Post Reply | Private Reply | To 1 | View Replies]

To: CFW

.


5 posted on 05/18/2023 10:30:13 AM PDT by sauropod (“If they don’t believe our lies, well, that’s just conspiracy theorist stuff, there.”)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson