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.

Peace In Ukraine Wonโ€™t End The Westโ€™s Hybrid War On Russia

The Westโ€™s Hybrid War on Russia to follow peace in Ukraine is inevitable due to neoconservatives and liberal-globalists in its decision-making ecosystem.

Was Texas Storm Manmade?

Another โ€œ1-in-100 yearsโ€ weather event in Kerr County happened next to a Texas designated โ€œWeather Modification Map of Rain-Enhancement Projects in Texasโ€.

The America Party Will Harm Democrats The Most

Elon Musk formed the America Party after an X poll asking his followers if they wanted โ€œindependence from the two-party system!

Democrats Exhibit the Dunning-Kruger Effect (DKE)

โ€œThe Dunning-Kruger effect is a cognitive bias where people with low ability at a task overestimate their competence, while those with high ability underestimate their competence.

250 Countdown

Those 56 intrepid men who signed put their very lives, honor and fortunes on the line. There was no auto-quill to accommodate their signatures.ย 

Existing US Energy Generation Retirements Increase Blackout Risk by 100 Times in 2030: DOE

Planned retirement of more than 100 gigawatts of power generation capacity by end of the decade could increase risk of blackouts in the US by 100 times.

Los Angeles Mayor Confronts Federal Immigration Officers at MacArthur Park

After decrying federal immigration enforcement operations in Los Angeles, Mayor Karen Bass confronted ICE officers as they gathered at a city park.

Trial Begins Over Trump Adminโ€™s Deportations of Pro-Palestinian Students

A trial over President Trumpโ€™s attempts to deport pro-Palestinian activists began on July 7 with attorneys debating free speech.

Man Killed After Opening Fire at Border Patrol Facility in Texas

27-year-old man armed with a rifle was killed after opening fire outside Border Patrol facility in McAllen, TX, prompting shootout with feds and local police.

Trump Extends Federal Hiring Freeze Until October

Trump issued memo extending federal hiring freeze until Oct. 15, maintaining exemptions for positions related to the armed forces and public safety.

US to Send More Defensive Weapons to Ukraine

The Pentagon is sending more defensive weapons to Ukraine amid the Eastern European countryโ€™s ongoing war with Russia.

Trump to Extend Tariff Deadline to Aug. 1, Keep Rates at 10 Percent During Talks

White House press secretary Karoline Leavitt told reporters that Trump will sign the order to move the deadline to Aug. 1 from its current date of July 9.

DOJ, FBI Find Epstein Committed Suicide, Had No โ€˜Client Listโ€™

Jeffrey Epstein committed suicide and had no โ€œclient list,โ€ according to the Department of Justice (DOJ) and the FBI.
spot_img

Related Articles