Tag Archives: Federal Deposit Insurance Corporation

Ellen Brown ~ The Global Banking Game Is Rigged, And The FDIC Is Suing

GlobalResearch  April 13 2014

Ellen Brown

Ellen Brown

Taxpayers are paying billions of dollars for a swindle pulled off by the world’s biggest banks, using a form of derivative called interest-rate swaps; and the Federal Deposit Insurance Corporation has now joined a chorus of litigants suing over it. According to an SEIU report:

Derivatives . . . have turned into a windfall for banks and a nightmare for taxpayers. . . . While banks are still collecting fixed rates of 3 to 6 percent, they are now regularly paying public entities as little as a tenth of one percent on the outstanding bonds, with rates expected to remain low in the future. Over the life of the deals, banks are now projected to collect billions more than they pay state and local governments – an outcome which amounts to a second bailout for banks, this one paid directly out of state and local budgets.

It is not just that local governments, universities and pension funds made a bad bet on these swaps. The game itself was rigged, as explained below. The FDIC is now suing in civil court for damages and punitive damages, a lead that other injured local governments and agencies would be well-advised to follow. But they need to hurry, because time on the statute of limitations is running out.

The Largest Cartel in World History

On March 14, 2014, the FDIC filed suit for LIBOR-rigging against sixteen of the world’s largest banks – including the three largest USbanks (JPMorgan Chase, Bank of America, and Citigroup), the three largest UKbanks, the largest German bank, the largest Japanese bank, and several of the largest Swiss banks. Bill Black, professor of law and economics and a former bank fraud investigator, calls them “the largest cartel in world history, by at least three and probably four orders of magnitude.”

Continue reading

Dave Hodges ~ Don’t Leave Your Money In The Bank Without Reading This First

The Common Sense Show  October 18 2013

Naomi Wolf

According to Naomi Wolf’s New York State Supreme Court complaint, she first discovered “unexplained activity” on her three Washington Mutual (WaMu) checking accounts in 2005. The prominent feminist author claims that she diligently sought to “monitor the activity of her accounts.” However, Wolf was blocked in her own self-monitoring efforts when WaMu stopped sending her monthly statements and denied her access to her online account. The net result of WaMu’s alleged actions is that Wolf alleges that more than $300,000 was stolen from her three accounts and this resulted in her filing a law suit against the bank. What happened to Naomi Wolf is going to be played out all across this country. And we are not going to have to wait too long for all of us to realize that we are Naomi Wolf.

What Used to Be Unthinkable Is the New Norm

“. . . the game itself changed. By raiding the depositors’ accounts, a major central bank has gone where they would not previously have dared. The Rubicon has been crossed.” Eric Sprott and Shree Kargutkar, “Caveat Depositor

America, we now live in a thugocracy. The banksters are using the power of government to steal from Americans. These banksters control the Congress, the President and the judges. There is seemingly nobody who is beyond their sphere of influence as these criminals are the poster children for the old adage which states that “Every man has his price”.

Continue reading

Pam Martens ~ Public Banking Institute Calls Largest Wall Street Banks “Unsafe,” And Backs It Up

 Wall Street On Parade  August 29 2013

Mike Krauss, Founding Director of the Public Banking Institute

The Public Banking Institute has released a new video making serious claims, backed by graphs and government documents, that the largest Wall Street banks are an unsafe choice for the savings of moms, pops and public payrolls. Citing a December 10, 2012 jointly approved plan between the U.S. Federal Deposit Insurance Corporation (FDIC) and the Bank of England, which resides on the FDIC’s federal web site, the organization says depositors in the U.S. could see portions of their deposits confiscated, similar to what happened in Cyprus, should there be another Wall Street collapse as occurred in 2008.

The first question, of course, is why the U.S. government is negotiating its banking policy with the United Kingdom instead of the U.S. Congress. The obvious answer is that global banks, now allowed to troll the planet in search of the next high-flying derivatives trade, must harmonize their rules to pacify their foreign regulators.

Under the Dodd-Frank financial reform legislation that Congress passed in 2010, taxpayer money is barred from being used to bail out collapsing banks. That leaves few options for the FDIC should one of the largest Wall Street banks face a liquidity squeeze or a run on its assets, or, worse yet, if the contagion spread to the other three largest Wall Street banks.

The Cyprus situation is known as a bail-in, rather than a bail-out. The initial Cyprus plan was to give depositors a haircut of 6.75 to 9.9 percent on their deposits. The Parliament shot down that plan and eventually $132,000 of each depositor’s money was returned. In the largest bank, the Bank of Cyprus, depositors, including charities and small businesses, lost 47.5 percent of their savings over the $132,000 amount. Instead, they were given shares in the recapitalized bank and had their non-seized funds frozen in six, nine and 12-month time deposits with the high probability that the freeze would last longer.

The Cyprus situation brought with it the stark realization that depositors are creditors of a bank and face risk along with other creditors.

Continue reading

Pam Martens ~ Is Sheila Bair Dangerously Naïve When It Comes to Dodd-Frank?

Wall Street On Parade June 27 2013

Sheila Bair, Former Chair of the FDIC, Testifies In Support of Dodd-Frank

Former Federal Deposit Insurance Corporation Chair, Sheila Bair, was watching the clock on the wall yesterday during her questioning by the House Financial Services Committee on whether the Dodd-Frank financial reform legislation can stop another taxpayer bailout of too-big-to-fail banks.  In the midst of the hearing, it was announced that Bair would have to depart at 12 noon. Based on the answers coming from Bair versus the three other witnesses, there was the impression that Bair wanted to beat a hasty retreat to lunch.

The problem comes down to this: Bair and many on the Democrats’ side of the aisle, refuse to acknowledge that their much ballyhooed financial reform legislation passed in July 2010, the  Dodd–Frank Wall Street Reform and Consumer Protection Act, is an utter failure in reining in the abuses of the Wall Street behemoths as well as useless in preventing another taxpayer bailout.

Thomas Hoenig, Vice Chair of the FDIC, Testifying Before the House Financial Services Committee On June 26, 2013

Thomas Hoenig, former President of the Federal Reserve Bank of Kansas City and now Vice Chair of the FDIC, told the Committee that the biggest banks are “woefully undercapitalized” and that we have a “very vulnerable financial system.” Hoenig was also a member of the Federal Reserve System’s Federal Open Market Committee from 1991 to 2011. Hoenig is so convinced of the utter failure of Dodd-Frank that he is strongly advocating the restoration of the Glass-Steagall Act which would force the separation of banks holding insured deposits from Wall Street brokerage firms and investment banks.

Continue reading

Pam Martens ~ House Financial Services Convenes Today On Too Big To Fail

Wall Street On Parade June 26 2013

The U.S. House of Representatives’ Financial Services Committee will convene at 10 a.m. this morning to hear new warnings about the growing dangers posed by the too big to fail Wall Street banks.

On deck to testify are: Thomas Hoenig, Vice Chairman of the Federal Deposit Insurance Corporation (FDIC); Richard W. Fisher, President of the Federal Reserve Bank of Dallas; Jeffrey Lacker, President of the Federal Reserve Bank of Richmond; and Sheila Bair, former Chair of the FDIC, now with the Pew Charitable Trust. (Bair wrote the quintessential insider’s account of the 2008 crash, Bull by the Horns.)

Tragically, these individuals spent hours writing their testimony with the full knowledge that it will far on the deaf ears of a Congress that is incapable of seeing a train wreck coming down the tracks until the mangled cars lie scattered over the landscape.

Here’s a look at some interesting milestones leading up to this hearing:

May 2011Restructuring the Banking System to Improve Safety and Soundness, By Thomas M. Hoenig, President and CEO, Federal Reserve Bank of Kansas City, and Charles S. Morris, Vice President and Economist, Federal Reserve Bank of Kansas City

“This proposal to reduce costs and risks to the safety net and financial system has two parts.  The first part proposes to restrict bank activities to the core activities of making loans and taking deposits and to other activities that do not significantly impede the market, bank management, and regulators in assessing, monitoring, and/or controlling bank risk taking.  However, prohibiting banks from engaging in activities that do not meet these criteria and that threaten financial stability would provide limited benefits if those activities migrate to shadow banks.  The second part proposes changes to the shadow banking system by making recommendations to reform money market funds and the repo market.”

Continue reading

Dean Henderson ~ Turning Tables On Banksters

Intellihub.com April 14 2013

Every high school in this country should teach a required course on how to save money and, more importantly, regarding the power of compound interest. And every parent should teach their children these same two things.

(Excerpted from Chapter 9: The Power of Compound Interest: Stickin’ it to the Matrix)

The trouble is that most parents nowadays are themselves unaware of the power of compound interest. This entire generation of parents and especially grandparents has largely bought into the matrix-controlled “get-rich” stock market scam at one level or another.

Many have taken a very cold bath. Some have taken several. And still, many cling to some fantasy that they too will be a millionaire someday if they just keep their head low and play by the matrix rules. It defies logic, not to mention indicates a moral bankruptcy unprecedented in humanity’s span of time on this planet.

The seminal event in the downgrading of the concept of savings in the US came with the Reagan Administration’s introduction of the 401K plan. This essentially privatized the retirement pension programs that most companies used to offer their employees for free.

The new 401K system was marketed as the best new thing since sliced bread. It sounded great since your employer would match your contributions to this stock exchange-based roulette scheme dollar for dollar.

What in fact had actually happened was that you were now matching your employer’s contribution to your retirement plan dollar for dollar, essentially taking that corporation off the hook for the other 50% of your retirement that it used to pay.

Thank you very much sir, may I have another?

Worse yet, that previously stable and secure pension fund that nearly every American used to be able to count on in their old age was tossed onto the roulette wheel of derivatives, hedge funds and dark pools. Free from these billions in pension liabilities, for a while the Dow Jones went straight up.

Some who retired a few years ago were able to ride the up escalator and retire millionaires. But that once-in-a-generation aberration has since turned into another bloodbath for the masses, most of whom saw their retirement savings flushed away when the various bankster-conjured bubbles, with names like Internet, NASDAQ and Housing, burst and came crashing to earth.

A handful of Illuminati banks own 90% of every company listed on a stock exchange. They buy low and sell high – to YOU. You are extremely naïve if you believe otherwise.

I was lucky to be burned early by these lunatics, and my losses were minimal. Ever since, I have taken a much safer and simpler approach to the retirement we are already enjoying.

Continue reading

Lawrence E. Rafferty ~ Could the Banksters Grab Your Bank Deposits?

Jonathan Turley March 31 2013

The recent news about Cyprus banks confiscating depositor’s funds sent chills throughout the financial world here and abroad.  I couldn’t believe that the plan in Cyprus hinged on the idea that the bank could just steal customer’s funds to balance the bank’s books.  I muttered to myself when I read the story that something as crazy as that couldn’t possible happen here in the United States.  Unfortunately, I learned that the plan to pull a Cyprus type grab here was already in the works.

“A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds. ” NationofChange 

The above article explains that most of us do not realize that when you deposit money in a bank, that it becomes the property of the bank and we become unsecured creditors of the bank! “Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price?” NationofChange

If I deposit $1,000 dollars in my local bank, I trust that the funds are safe and protected by FDIC insurance and that even if the bank fails, I will get my money back.  Under the plan listed above, we may not even be able to fall back on the FDIC insurance coverage.  The FDIC-Bank of England plan would supersede our FDIC coverage and we would be relegated to become a “shareholder” in the failing bank or its successor entity.  Let me see if I understand this scheme.  The bank who is failing due to mismanagement or due to risky investments could steal my funds and force me to accept stock in a company led by poor businessmen with an even poorer business record!  If you are brave enough, check out the full FDIC-Bank of England plan here.

Continue reading

Ellen Brown ~ It Can Happen Here: The Bank Confiscation Scheme For US And UK Depositors

Global Research March 30, 2013

Confiscation of the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets.

Ellen Brown

A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.

New Zealand has a similar directive, discussed in my last article here, indicating that this isn’t just an emergency measure for troubled Eurozone countries. New Zealand’s Voxy reported on March 19th:

The National Government [is] pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts . . . .

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

Can They Do That?

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

Continue reading