On the morning of Friday 23rd March the Treasury Secretary for America Janet Yellen convened the heads of top US financial regulators for an unscheduled meeting of the Financial Stability Oversight Council.
The Treasury Department not only announced in a statement that the meeting will be private but that even the start time won’t be disclosed and it wasn’t immediately clear if the council would issue a statement after the meeting.
What is the emergency? We were not told.
But the readers should know that besides the Silicon Valley Bank (SVB) collapse there was also another collapse of another bank – the Silvergate Capital which also blew up although that preceded SVB’s failure and stemmed from losses tied to the struggles of cryptocurrency customers like bankrupt FTX and Genesis. This means that we had the failure of two mid-sized lenders in the US.
In addition we also had the nearly-collapse of banking titan Credit Suisse Group AG before its government-brokered takeover by rival UBS Group AG. The irony is that S&P published a bad rating forecast for this Swiss bank UBS after being forced to “buy” the failing bank “Credit Suisse” lowering the rating forecast for UBS from “stable” to “negative”. Will this create shocks in the Swiss bank shares and in general? S&P explained the downgrade as: “We see a substantial execution risk in the integration of Credit Suisse into UBS.”
But regulators are continuing their efforts to calm the financial markets and bank depositors.
The leaders of the Federal Reserve the Federal Deposit Insurance Corp. and numerous other regulatory organizations are among the members of the FSOC. Although it has little legal standing it serves as a forum for coordination.
After Silicon Valley Bank collapsed which was caused by the sudden exodus of such funds US financial regulators have come under pressure to be more transparent about their willingness to guarantee uninsured bank deposits.
Can someone explain what is going on in and with the banks? Can we have local economists explaining to the nation what is happening and be crystal clear rather than giving the public the usual sugar-coated bullshit? Like when Kevin James Fenech decided to tell us to not be scared and look up while focusing on the post-pandemic recovery? Fenech clearly had no clue of the Great Reset agenda or just took it as another conspiracy theory.
What will be discussed in this meeting? Why was the council convened in an unscheduled meeting?