Memo to President Biden & his administration: Lessons from the 2008 financial crisis, so it doesn't happen again

[basquebromance]

Silicon Valley Bank’s Chief Risk officer was the Managing Director at Deutsche Bank during the 2008 crisis AND led credit ratings in 2007. Fail to plan. Plan to fail

Silicon Valley Bank had no official chief risk officer for 8 months while the VC market was spiraling

SVB's former CRO stepped down in April 2022, and the next CRO was appointed earlier this year, according to the bank's regulatory filings.

fortune.com

 

[basquebromance]

Standing in the kitchen of his Park Avenue apartment, Jamie Dimon poured himself a cup of coffee, hoping it might ease his headache. He was recovering from a slight hangover, but his head really hurt for a different reason: He knew too much.

It was just past 7:00 a.m. on the morning of Saturday, September 13, 2008. Dimon, the chief executive of JP Morgan Chase, the nation’s third-largest bank, had spent part of the prior evening at an emergency, all-hands-on-deck meeting at the Federal Reserve Bank of New York with a dozen of his rival Wall Street CEOs. Their assignment was to come up with a plan to save Lehman Brothers, the nation’s fourth-largest investment bank—or risk the collateral damage that might ensue in the markets.

To Dimon it was a terrifying predicament that caused his mind to spin as he rushed home afterward

“Honestly, I’m never this late,” he offered, hoping to elicit some sympathy. Trying to avoid saying more than he should, still he dropped some hints about what had happened at the meeting.

“You know, I am not lying about how serious this situation is,” Dimon told his slightly alarmed guests as he mixed himself a martini. “You’re going to read about it tomorrow in the papers.”

As he promised, Saturday’s papers prominently featured the dramatic news to which he had alluded. Leaning against the kitchen counter, Dimon opened the Wall Street Journal and read the headline of its lead story: “Lehman Races Clock; Crisis Spreads.”

Dimon knew that Lehman Brothers might not make it through the weekend. The rest, as they say, is history!

 

[Moonglow]

But wealthy people know how to handle money.

 

[basquebromance]

“That’s wishful thinking. There is no way, in my opinion, that Washington is going to bail out an investment bank. Nor should they,” Jamie Dimon said decisively to his board members. “I want you all to know that this is a matter of life and death. I’m serious.”

 

[2aguy]

Silicon Valley Bank’s Chief Risk officer was the Managing Director at Deutsche Bank during the 2008 crisis AND led credit ratings in 2007. Fail to plan. Plan to fail

Silicon Valley Bank had no official chief risk officer for 8 months while the VC market was spiraling

SVB's former CRO stepped down in April 2022, and the next CRO was appointed earlier this year, according to the bank's regulatory filings.

fortune.com

So it doesn't happen again? This is exactly what the democrats want...........they gain power as things fall apart.....and they gain power like this.....

In other words, if the FDIC likes your bank, the depositors are insured. If not, the depositors are not insured over $250,000, which means what?

It means that people will withdraw their money from community banks and hand those deposits over to a handful of fascist giant banks that not only own almost all the banking but will refuse to do business with you if you hold certain political opinions they find offensive… Oh, and you can bet those political opinions they find offensive will always-always-always be conservative opinions.

Lankford understands what these corrupt crony capitalists are up to and follows up with this:

Nolte: Janet Yellen Admits Government Choosing Bank Bailout Winners and Losers

Janet Yellen admitted to the U.S. Senate Thursday that the government is choosing winners and losers in the rigged bank bailout lottery.

www.breitbart.com