America Faces No Greater Threat Than Joe Biden and the Democrat Party. Their Assault to Our Borders Is As Great As Their Assault to Free Speech and Free Elections
Saturday, March 25, 2023
MORE SOCIALISM FOR BANKSTERS? - THE BANKSTER-OWNED DEMOCRAT PARTY AT W0RK! - Dem Rep. Sherman: FDIC Insurance Used to Backstop SVB Depositors Is ‘Not Free’ and ‘Cost Is Passed on to the Depositor’
...... and the 'speech fee' bribes rolled in!
“Attorney General Eric Holder's tenure was a low point even within the disgraceful scandal-ridden Obama years.”
DANIEL GREENFIELD / FRONTPAGE MAG
Silicon Valley Bank Board Included Barack Obama, Hillary Clinton Donors
Harvard Prof., Fmr. IMF Economist Rogoff: Fed, Treasury Support for Bailouts of Billionaire Depositors Will Incentivize Risk, Create Problems
On Wednesday’s broadcast of “PBS NewsHour,” Harvard University Economics Professor and former Chief Economist at the International Monetary Fund Ken Rogoff said that the Federal Reserve and Treasury Department have signaled that they’ll “protect depositors, even ones with billions of dollars they’ve bailed out with Silicon Valley Bank” and this will lead to bankers engaging in more risky behavior and “bigger problems in the future.”
Rogoff stated, “I feel like the Federal Reserve and the Treasury have kind of broadcast that they’re going to protect depositors, even ones with billions of dollars they’ve bailed out with Silicon Valley Bank. I think they’re going to continue that. That has a lot of problems, because bankers will do more risky things. It’s going to lead to bigger problems in the future. But they’ve really telegraphed that. The problem is, the other side of the coin is that everyone’s worried the banks will not be able to lend as much. The regulators are going to be looking harder. They’re going to have to raise deposit rates, and they’ll have [fewer] profits to lend out. So, for the moment, it looks like they’ve contained the panic. But, longer term, bankers do risky stuff, and they certainly aren’t reining that in. And the more they regulate it, the harder it’s going to be to get loans. So, there are certainly problems ahead.”
On Friday’s broadcast of Bloomberg’s “Balance of Power,” Rep. Brad Sherman (D-CA) stated that the FDIC insurance that was used to backstop depositors at Silicon Valley Bank (SVB) and that federal officials have said could be used in the future to backstop depositors “is not free” and “Ultimately, that cost is passed on to the depositor.”
Sherman said that he supports increasing the deposit insurance limit, and “If you’re using the bank as a utility, as a system to pay your bills, then you shouldn’t have to check to see whether that bank is strong or very strong, you should be able to use it as a utility. A million or even higher might be in order. Whereas, if you’re making a million-dollar investment, there’s some onus on you to determine that you’re investing in a sound bank.”
He continued, “The other thing is that FDIC insurance is not free. Ultimately, that cost is passed on to the depositor. If you’re putting — giving your money to the bank on an interest-free basis in a non-interest-bearing account, there’s no way for them to lower the interest rate any lower and so depositors don’t suffer. On the other hand, if you impose this cost on people buying certificates of deposit or other investment accounts, then the bank is going to pass through the cost of the insurance and there’s going to be a real detriment to depositors.”
No comments:
Post a Comment