Courtesy of Pam Martens
Five Wall Street Mega Banks Are Highly Interconnected: Stock Symbols Are as Follows: C=Citigroup; MS=Morgan Stanley; JPM=JPMorgan Chase; GS=Goldman Sachs; BAC=Bank of America
By Pam Martens and Russ Martens: July 6, 2017
According to the Federal Deposit Insurance Corporation (FDIC), as of March 31, 2017 there were a total of 5,856 banks in the U.S. operating under its Federal deposit insurance umbrella. But according to government financial researchers, five of those banks pose an ongoing material threat to the U.S. financial system. Not surprisingly, those five banks hold insured deposits for savers while simultaneously engaging in highly leveraged, high risk trading on Wall Street.
On June 27, Janet Yellen, the Chair of the U.S. Federal Reserve (the nation’s central bank) spoke at an event at the British Academy in London. She stated the following about the U.S. financial system:
“Would I say there will never, ever be another financial crisis? You know probably that would be going too far, but I do think we are much safer, and I hope that it will not be in our lifetimes and I don’t believe it will be.”
We hate to be the bearer of bad tidings, but there is no substantive data to support Janet Yellen’s view. In fact, the very body that provides the intelligence to the Financial Stability Oversight Council (F-SOC), the U.S. Treasury’s Office of Financial Research (OFR), has been pumping out volumes of research that strongly suggest just the opposite. According to OFR’s research, those five Wall Street mega banks hold the fate of the U.S. financial system in their highly interconnected and highly dangerous hands. Tragically, that’s pretty much the same condition the U.S. was in heading into the crash of 2008.
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