Another Week in Banksterland

in crypto •  2 years ago 

‘It’s going to get worse for banks’ — JPMorgan CEO on overregulation

The CEO of JPMorgan Chase — which recently took over failed First Republic Bank — believes there could be more pain ahead for United States banks if the Federal Reserve goes into crisis mode with overregulation.

Which, of course, is good news for the whale-banks such as JPM. All far too similar to how banks failed before the Fed was created some 110 years ago. Same synthetic designed-to-fail banks, plus a lot of management stupidity.

However, Dimon believes adding more regulations to the Federal Reserve’s already 200,000-page long stress test is not the solution to the current banking crisis.

and

He further questioned the effectiveness of stress tests, as companies that completely focus on “that one stress test,” could be overlooking issues, such as historical events that “always happen” again.

One of those issues is the rating of gov-bonds as zero weighted risk, but that's just the risk of defaulting, not the risk of unexpectedly high price swings. Laughable really - or planned to catch out those not-so-smart banksters. This particular problem is not going to be massaged away - a bank is either big enough to soak up the temporary losses, or risks a liquidity crunch.

More bankster fayre coming soon...

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  ·  2 years ago  ·  

Really is worth being aware of what is really going on. The whole banking system is designed - indeed, forced - to operate on the edge of insolvency. So much for being "prudent" - that's just BS.

Bank insolvency is very much like negative equity for home owners - when the price of assets is lower than the price paid.

  ·  2 years ago  ·  

More Than 700 US Banks Facing ‘Significant Safety and Soundness Risk’ Due to Massive Unrealized Losses: Federal Reserve

According to the Fed, more than 700 banks have self-reported unrealized losses that exceed 50% of their capital.

the report = https://www.federalreserve.gov/supervisionreg/files/board-briefing-on-impact-of-rising-interest-rates-and-supervisory-approach-20230214.pdf

So, if a Fed agent pushes you off a balcony, they will blame gravity for killing you, not their push.

  ·  2 years ago  ·  

So "not our fault" report from the Fedsters.
Who to blame now?

  ·  2 years ago  ·  

'Significant risk' of US Treasury running 'out of funds' soon: Report
https://cointelegraph.com/news/significant-risk-us-treasury-funds-report

Always the same. The banksters and their regulators fleecing the nation-state.
With interests rates' sharp increase this would be a good time to buyback debt at cheaper prices. Oh yeah, no money - allegedly.