Two days after Franklin D. Roosevelt was sworn in as President on March 4, 1933, he had no choice but to declare a nationwide “banking holiday” lasting to March 13 in order to deal with a financial panic and bank runs. Setting in motion the growing panic was the collapse of the Bank of United States in 1930, the largest bank collapse in U.S. history at that point. At the time of its collapse, Bank of United States was the fourth largest depositor bank in New York City, holding an astounding $268 million for over 400,000 small time depositors. There was no federal deposit insurance at that time to stem the banking panic.
The bank’s name inferred to many that it was part of the U.S. government, which it decidedly was not. The bank was founded by two men from the garment industry, Bernard Marcus and Saul Singer. But the bank’s name and its collapse fed media coverage and triggered other bank runs.
Those two dickheads thieving led to the passing of the Glass- Steagall Act, creating federal deposit insurance for bank deposits while also banning banks taking insured deposits from owning stock trading house.
The Glass-Steagall Act protected the U.S. banking system for 66 years until its repeal by Congress on November 12, 1999 under the Gramm-Leach-Bliley Act. Just nine years after Glass-Steagall was repealed, Wall Street trading houses like Citigroup, Lehman Brothers and Merrill Lynch – which owned federally-insured banks as a result of the repeal of Glass-Steagall – were collapsing from their wild, speculative bets, setting off the worst financial crash since the Great Depression.
Citigroup was propped up with $2.65 trillion in cumulative, secret loans from the Federal Reserve Bank of New York for 2-1/2 years. Lehman Brothers, which collapsed into bankruptcy on September 15, 2008, had more than 900,000 derivative contracts outstanding and had used the largest federally-insured banks on Wall Street as counterparties to many of its losing derivative trades. Merrill Lynch was propped up with $2.4 trillion in cumulative, secret loans from the Fed and collapsed into the arms of Bank of America in 2008.
Stealing tens & tens of trillions wasn’t enough for these shit-covered pigs, now they want to open up banks that are NOT insured so they can gamble even bigger amounts, cause they know that Uncle Sucker–that’s you & me–will get the bill while they go to their Patagonia bug out & we suffer. What they want to do is against federal law and even the ABA–American Banking Association–is against this fraud, but Trump be a goody boy, he’ll do what he’s told by Jared the Chabad.
…if Applicant is successfully able to establish itself as a national bank and a depository institution, despite not being an insured depository institution, it is likely that other enterprises would follow this path, thereby creating a new and growing source of systemic risk.
Even if the number of uninsured national banks and the amount of their deposits were relatively limited, the potential impact of the failure of one or more of these banks upon other banks may not be. This is particularly the case because the OCC has not acted as a receiver in decades, and the resolution of such a firm is likely to be confusing and uncertain.
Now that Jared the Chabad’s white elephant building at 666 Fifth Ave–gotta love that number–is safe, thanks to Daddy-in-law making threats to sanction Qatar, until some oil sheikh invested a couple hundred million in 666, he can conjure up all sorts of evils from that location while we get hung out to dry.