You are here
Pam and Russ Martens: The Fed did a lot of talking yesterday about a big bank failure -- should we worry?
By Pam and Russ Martens
Wall Street on Parade
Wednesday, October 21, 2020
Turns out the federal government's plan for dealing with a mega-bank failure on Wall Street is no better conceived than the federal government's plan for dealing with the worst pandemic since 1918.
The Federal Reserve issued two press releases yesterday about "large banks." One read: "Agencies finalize rule to reduce the impact of large bank failures." The other read: "Agencies issue final rule to strengthen resilience of large banks."
... Dispatch continues below ...
Buy metals at GoldMoney and enjoy international storage
GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:
Wait. What? Fed Chairman Jerome Powell has been telling anyone who would listen this year -- from Congress to viewers of the "Today" show -- that the large banks have been a "source of strength" during the worst economic downturn since the Great Depression. If that were true (which we've questioned from the first time Powell said it), why is the Fed now worrying about a "large bank failure" and the need to "strengthen" large banks?
The first press release from the Fed yesterday deals with the fact that the biggest banks on Wall Street remain interconnected to one another. If you recall, in 2008 the interconnections of Lehman Brothers, Citigroup, and AIG to the biggest banks on Wall Street created a daisy chain of rapid meltdowns across Wall Street.
So federal regulators had this plan: They would make the largest banks issue TLAC debt -- "Total Loss-Absorbing Capacity" debt. The idea, according to the regulators, was that this "debt could be used to recapitalize the holding company during bankruptcy or resolution if it were to fail," rather than putting the taxpayer on the hook for another massive bailout like 2008. ...
... For the remainder of the report:
Join GATA here:
Mining Investment Asia (Virtual)
Monday-Wednesday, November 2-4, 2020
Mining Investment North America (Virtual)
Wednesday-Thursday, November 11-12, 2020
* * *
Toast to a free gold market
with great GATA-label wine
Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.
Here's what the bottles look like:
Buyers can compose their case by choosing as many as four varietals from the list here:
GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?
To order a case of GATA-label wine, please e-mail Fay J Winery at firstname.lastname@example.org.
* * *
Support GATA by purchasing
Stuart Englert's "Rigged"
"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --
-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at email@example.com.
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit: