by Pam Martens and Russ Martens at Wall Street on Parade
Remember those Fed bailouts of the mega banks on Wall Street during and after the 2008 financial crisis that the Federal Reserve battled in court for years to keep secret from the American people? Those bailouts went to the same Wall Street mega banks that collapsed the U.S. economy with their unbridled greed and unchecked corruption. The banks were even allowed to pay big bonuses to their execs with the bailout funds.
When Senator Bernie Sanders forced the bailout details into the sunlight with a mandated government audit, the findings were so revolting that Senator Sanders had this to say:
“As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world. This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”
Well, bailouts for wayward banks are back in style in a big way. According to Securities and Exchange Commission (SEC) filings made by crypto-friendly banks, Federal Home Loan Banks (FHLB) in San Francisco, Boston, New York and Pittsburgh have made large advances of money to banks facilitating crypto in various ways as bank depositors yanked their cash and/or the banks’ share prices tanked.
Among the crypto-friendly banks tapping into these FHLB advances are Silvergate Capital, parent of Silvergate Bank; Signature Bank; Provident Bancorp (owner of BankProv); and Ally Financial. This may, however, be just the tip of the iceberg because many crypto-engaged banks are not publicly traded and thus are not required to file SEC reports. S&P Global reports that as of October of last year, “the Federal Deposit Insurance Corp. was aware of about 80 financial institutions under its supervision that expressed interest in cryptocurrency-related activities, and about 24 of them were actively engaged.”
Let that sink in for a moment:…Continue Reading