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IPFS News Link • Central Banks/Banking

Bank failures coming: Raft of federally insured banks compromised by unwise over-investment...

•, By JD Heyes

It's bad enough that millions of cryptocurrency investors have lost nearly all of their initial money after the industry began crashing earlier this year, but now it looks as though federal taxpayers are also going to be on the hook.

According to a report by Wall Street On Parade, Sen. Elizabeth Warren (D-Mass.) tipped everyone off to the coming disaster — probably inadvertently — with remarks she made last week during a Senate Banking, Housing and Urban Affairs hearing.

Warren garnered the attention, too, of federal regulators when she said that Voyager, a crypto platform that filed for bankruptcy protection early last month, had promoted itself as an FDIC-insured financial instrument. "FDIC stands for Federal Deposit Insurance Corporation and is the federal agency that oversees federal deposit insurance for the nation's regulated banks and savings associations," the WSOP report stated.