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IPFS News Link • Central Banks/Banking

The Cover-up Begins

• https://www.paulcraigroberts.orgPaul Craig Roberts

In Bloomberg's rewriting of history,  Trump is responsible because he signed a bill passed by Democrats and Republicans that allowed mid-sized banks to "skirt some of the strictest post-financial crisis regulations." So, where was the federal reserve? Where were the bank regulators? Bloomberg doesn't say.

Presidents don't write financial legislation. Financial legislation that the Federal Reserve and the SEC don't approve doesn't get passed. A third world immigrant-invader, Ro Khanna, who somehow represents in Congress Silicon Valley says: "Congress must come together to reverse the deregulation policies that were put in place under Trump."

What utter total bullshit.

Silicon Valley Bank failed because in 1999 the Clinton regime signed the repeal of the Glass-Steagall act and because the Dodd-Frank Act allows failing banks to seize the deposits of depositors in order to have a bail-in instead of a bail-out. The foolish legislation causes depositors to withdraw their deposits on any sign of bank trouble.

The utterly mindless Dodd-Frank Act set up the mechanism for modern-day bank runs. If you have more money on deposit than the $250,000 insured amount, Dodd-Frank allows the bank to bail itself out by seizing your deposits. Many companies and corporations have payroll deposits in excess of $250,000. If deposits are seized, business can't pay their workers or their bills. Thus Dodd-Frank is an excellent way of initiating bank runs and collapsing businesses and employment and city and state tax revenues.