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. 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.

How The Big Beautiful Bill Will Keep Louisiana’s Energy Industry Strong

Renewable or not, our federal govt should not be rigging the deck against any energy sources, especially nuclear power that is both clean and consistent.

On Declaring War, Congress De Facto Amended the Constitution

Congress has de facto amended the Constitution by 55 years of refusing to debate matters of war and peace.

AOC โ€“ Acting On Cue

It is easy to dislike Alexandria Ocasio-Cortez (AOC), also known as Sandy Cortez, because she is fraudulent and not to smart.

LGBTQโ„ข Propaganda Roundup: Tampon Tim Walz Fails the Test

LGBTQโ„ข Propaganda Roundup: Nip/tucking the latest social engineering fisted...

AI is Now an Existential Threat

We now see evidence that artificial intelligence is an existential threat to our future. It is coming to take American jobs!

DOJ Sues LA Over Sanctuary City Policies: 4 Things to Know

DOJ filed a lawsuit against Los Angeles over what it said are โ€œsanctuary cityโ€ policies that shield illegal immigrants from deportation efforts.

Rep. Dusty Johnson Will Run for Governor of South Dakota

U.S. Rep. Dustin Michael โ€œDustyโ€ Johnson has announced that he will run for governor of South Dakota during the general election to that office in 2026.

Moderna to Ask for Clearance for Combination COVID-Influenza Vaccine

Moderna is going to ask regulators to approve its combination vaccine against COVID-19 and influenza, the company said on June 30.

FBI Says Itโ€™s Uncovered โ€˜Largest Health Care Fraudโ€™ in American History

FBI and DOJ said $15 billion in losses was reported in โ€œlargest health care fraudโ€ investigation in U.S. history. Officials charged more than 300 people.

Federal Reserve โ€˜Should Be Ashamedโ€™ for Not Lowering Interest Rates, Trump Says

President Donald Trump said Federal Reserve Chair Jerome Powell and his colleagues โ€œshould be ashamedโ€ for not lowering interest rates.

Canada-US Trade Talks Will End Until โ€˜Certain Taxesโ€™ Are Dropped, Trump Stresses

Trade discussions between Canada and the United States will end โ€œuntil such time as they drop certain taxes,โ€ U.S. President Trump said in an interview.

Trump Says US to Send Tariff Letters to Trade Partners Before July 9 Deadline

President Donald Trump said Sunday he will soon send letters to trading partners detailing the tariffs to be imposed on their exports to the United States.

Trump Says He Found a Buyer for TikTok

President Trump said he found a buyer for the Chinese-owned short video application TikTok, and that he will reveal the group in roughly two weeks.
spot_img

Related Articles