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

Contact Your Elected Officials

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. 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: Look, I mean, that’s certainly not something that we’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 that’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 there’s a special assessment that’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: I’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 I’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 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 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. I’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.

Five Reasons Why The Latest Czech Elections Were So Important

Populist-nationalist politician Andrej Babis is poised to return to the premiership after his party's victory. Here are 5 reasons why this is so important.

Bad Bunny is the NFL’s Latest Insult

After years of advocating social justice causes, the NFL chose left wing, gender fluid rapper Bad Bunny to headline the next Super Bowl. Does the NFL want conservatives fans?

Scheduling collides with legacy

The ACC’s footprint now sprawls from Boston and Miami to Salt Lake City and the San Francisco Bay, defying both geography and its own name.

The Paradoxical Patriot: The political odyssey of Frank S. Meyer

In his book, Daniel J. Flynn examines the ideological evolution of one of conservatism’s most paradoxical and overlooked architects, Frank S. Meyer. 

This Is America: Target™ Reparations

“This Is America” explores the cultural undercurrents pulling Western...

CDC Says COVID-19 Vaccination Now Up to Each Individual

CDC no longer broadly recommends COVID-19 vaccination, each person should look at a range of factors, and consult their doctor, before receiving a shot.

Illinois Sues Trump Admin to Halt National Guard Deployment to Chicago

Illinois filed a lawsuit against the Trump admin on Oct. 6 in a bid to halt the federal govt from deploying National Guard troops to Chicago.

2 Arrested After Federal Agents’ Vehicle Rammed in Chicago

The FBI arrested two people who allegedly drove vehicles into federal officials near Chicago, FBI Director Kash Patel announced on Sunday evening.

Burger Chain Installs ‘Tallest and Biggest’ American Flags at Restaurants Nationwide

Fast food chain Steak ‘n Shake has started installing large American flags at its outlets across the country, the company said in an Oct. 5 post on X.

Agencies Terminated, Descoped 94 Wasteful Contracts With $8.5 Billion Ceiling Value, Says DOGE

Various federal government agencies have terminated and descoped 94 wasteful contracts over the past five days, DOGE said in an Oct. 4 post on X.

Department of Energy Cancels $7.5 Billion in Project Funding

The Dept of Energy (DOE) said on Oct. 2 that it had terminated 321 federal grants funding 223 projects, amounting to about $7.56 billion in cuts.

White House Withdraws EJ Antoni’s Nomination to Lead Bureau of Labor Statistics

The White House has withdrawn economist EJ Antoni’s nomination to lead the Bureau of Labor Statistics, the White House confirmed on Sept. 30.

US to Impose 100 Percent Tariffs on Foreign-Made Movies, Trump Says

President Donald Trump announced on Sept. 29 that he will impose a 100 percent tariff on all movies produced outside the United States.
spot_img

Related Articles

Popular Categories

MAGA Business Central