Taxpayers Fleeced Again - Big Banks Push New FDIC Re-Funding 'Trick' To Dump Their $620 Billion in Losses On Taxpayers
Posted by freedomforall 11 months, 2 weeks ago to Government
Excerpt:
"Not satisfied with the billions in interest they're earning on excess reserves, or the unlimited facilities The Fed opened up with the BTFP to bail out regional banks' losses on their bond portfolios, The Wall Street Journal reports that banks have spent the past week or so testing a cunning plan to push more losses on to the US taxpayer.
Instead of paying the billions of dollars they collectively owe to replenish the federal deposit insurance fund, they want to use Treasurys instead of cash.
Sounds good right...
...except those Treasuries are trading notably below par and the government will accept them as par, implicitly paying a premium for the bonds.
As a reminder, US banks are sitting on $620 billion in unrealized paper losses on government bonds.
And the 'Big 4' - who will pay the biggest "fees" to replenish the FDIC fund are sitting on these unrealized losses which they would love to swap for par to some sucker...
This would put even more of the banks' balance-sheet-clogging losses on the US taxpayer's shoulders."
"Not satisfied with the billions in interest they're earning on excess reserves, or the unlimited facilities The Fed opened up with the BTFP to bail out regional banks' losses on their bond portfolios, The Wall Street Journal reports that banks have spent the past week or so testing a cunning plan to push more losses on to the US taxpayer.
Instead of paying the billions of dollars they collectively owe to replenish the federal deposit insurance fund, they want to use Treasurys instead of cash.
Sounds good right...
...except those Treasuries are trading notably below par and the government will accept them as par, implicitly paying a premium for the bonds.
As a reminder, US banks are sitting on $620 billion in unrealized paper losses on government bonds.
And the 'Big 4' - who will pay the biggest "fees" to replenish the FDIC fund are sitting on these unrealized losses which they would love to swap for par to some sucker...
This would put even more of the banks' balance-sheet-clogging losses on the US taxpayer's shoulders."
I believe what we experienced is a peaceful controlled decent into global totalitarianism.
Glad I'm on the own other side of the hill...I suspect folks like me won't live long enough to see the fruition of the plan. Totalitarians don't appreciate any opposition in deed or voice.
1/2 the banks are in the red