Janet Yellen: No Bailout For Community Banks Only Big Banks Deemed Worthy by Biden Regime

Treasury Secretary Janet Yellen testified before the Senate Finance Committee and admitted to Senator James Lankford that smaller regional banks across the country will not be bailed out by the U.S. government. Only “Big” banks like Silicon Valley Bank, and their depositors, including businesses affiliated with the CCP in China, will be bailed out. Are these “Big” banks full of Democrat donors like FTX?

Transcript

Sen. James Lankford: 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 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. Iโ€™m concerned youโ€™re about to accelerate that by encouraging anyone who has a large deposit in a community bank to say, weโ€™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: Look, I mean, thatโ€™s certainly not something that weโ€™re encouraging

Sen. Lankford: That is happening right now.

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

Sen. Lankford: No, 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.

Janet Yellen: Well, you’re not fully insured and

Sen. Lankford: You were at Signature and it was, it just barely met that threshold you were at Signature.

Janet Yellen: Well, we felt that there was a serious risk of contagion that could have brought down and triggered runs on many banks. And thatโ€™s 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.

Sen Lankford: So thereโ€™s a special assessment thatโ€™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 the special assessment would cover every bank, including rural banks in my state?

Janet Yellen: Iโ€™m not certain what the rules are around that for the FDIC to determine.

Sen. Lankford: 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 individuals, companies, entities, and investors that are Chinese investors be made whole based on assessments in my banks in Oklahoma? So what Iโ€™m asking is, will my banks in Oklahoma pay a special assessment to be able to make Chinese investors whole from Silicon Valley Bank?

Janet Yellen: Uninsured investors will be made whole in that bank, and I suppose that could include foreign depositors, but I donโ€™t believe thereโ€™s any legal basis to discriminate among uninsured.

Sen. Lankford: I get it, but Iโ€™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, that taxpayers are not going to have any kind of consequence on this. Iโ€™m sure my bankers are going to be very excited to know they no longer pay taxes, and their banks no longer pay taxes. Credit unions don’t pay taxes, banks do, and so they’re definitely taxpayers as well, and all banks make their revenue off of rates and fees and such to their account holders, which means every Oklahoma will pay higher fees in their community bank.

Janet Yellen: If we have a collapse of the banking system and it’s economic consequences that will have very severe effects on banks in Oklahoma that will also be threatened . . .

Sen. Lankford: I’m just worried about, I’m just worried about the long term consequences on our banks as well.

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

Columns

Why Fishermen Are Catching Fewer Lobsters in Maine

For veteran lobsterman Travis Dammier, it was the end of another trip at sea on a solo voyage to earn a living.

Viewers like you

There is no constitutional authority for any spending on public broadcasting โ€“ period. Any questions: See Article 1, Section 8 of the U.S. Constitution.

Beyond the Trump-Musk fallout?

We are witnessing an unprecedented, unhinged Democrat effort to use lawfare, big Democrat donors, street theater, congressional disruptions, potty-mouth videos, the administrative state, the legacy media, and discredited pollsters to stop the Trump agenda.

Trans-wormal

No worm ever said "I am anthropomorphizing, I am a butterfly" to a toad or flock of geese and expected acknowledgement and support.

In Greenlandโ€™s Icy Capital, Past Troubles Haunt Hopes for the Future

As geopolitical realities and ongoing economic growth raise the stakes, U.S. interest in Greenland and the dream of independence may change things in a big way.

News

Citigroup Reverses Course on Controversial Firearm Policies

Citigroup reversed its policy requiring retail business clients to refrain from selling firearms to those who havenโ€™t passed background checks.

Supreme Court Sides With DOGE in Social Security, Records Cases

The Supreme Court handed DOGE two big wins late on June 6 in its effort to reduce the size of the federal government.

Kilmar Abrego Garcia Returns to US to Face Criminal Charges

Kilmar Abrego Garcia, a citizen of El Salvador, is on his way back to the US, where he will face criminal charges for allegedly smuggling illegal immigrants.

White House Adviser Gives Update on DOGEโ€™s Future Amid Muskโ€“Trump Spat

A top White House adviser said DOGEโ€™s work will likely continue amid a spat between its former chief, Elon Musk, and President Donald Trump.

Trump Administration Asks Supreme Court to Allow Dismantling of Education Department

Trump admin asked Supreme Court to allow it to resume dismantling U.S. Dept of Education, following a lower courtโ€™s previous order halting process.

FTC Warns of Rising Student Loan Scams, Says Fraudsters Took Millions From Borrowers

FTC is warning borrowers to steer clear of student loan debt-relief scams, after shutting down group of companies that allegedly charged millions in illegal fees and left customers worse off.

Walmartโ€™s Drone Delivery Coming to 5 More US Cities

Walmart is set to launch its drone delivery service in five more U.S. cities: Atlanta, Charlotte, Houston, Orlando, and Tampa, the company.

Court Orders Trump Administration to Restore AmeriCorps Funding to States

Federal court ordered Trump admin to restore AmeriCorps funding to states. The ruling comes as part of a lawsuit filed by 24 states and DC.
spot_img

Related Articles