1 00:00:11,840 --> 00:00:14,520 Speaker 1: Good morning, peeps, and welcome to WIKA F Daily with 2 00:00:14,720 --> 00:00:19,680 Speaker 1: Meet your Girl Danielle Moody, recording from the Home Bunker. Folks, 3 00:00:20,320 --> 00:00:22,200 Speaker 1: you know, I got to tell you that all of 4 00:00:22,239 --> 00:00:27,960 Speaker 1: the news surrounding the Silicon Valley Bank failure and seizure 5 00:00:28,080 --> 00:00:31,800 Speaker 1: by the federal government as well as now Signature Bank 6 00:00:32,440 --> 00:00:37,160 Speaker 1: and the FDIC stating that all of the depositors will 7 00:00:37,240 --> 00:00:40,879 Speaker 1: be insured, even those that exceeded the two hundred and 8 00:00:40,880 --> 00:00:46,120 Speaker 1: fifty thousand dollar insurer limit will be insured, I got 9 00:00:46,120 --> 00:00:51,800 Speaker 1: to tell you that I'm so disgusted by this entire situation. 10 00:00:52,400 --> 00:00:57,640 Speaker 1: I'm disgusted because people like my upcoming guest Jennifer Tobb, 11 00:00:57,840 --> 00:01:01,920 Speaker 1: predicted that this would happen. I'm disgusted by the fact that, 12 00:01:02,240 --> 00:01:05,880 Speaker 1: you know, during the Obama administration, as we were watching 13 00:01:06,360 --> 00:01:12,200 Speaker 1: banks being greedy as fuck, which predicated the foreclosure crisis, 14 00:01:12,880 --> 00:01:17,399 Speaker 1: and none of those executives being held accountable any which 15 00:01:17,440 --> 00:01:21,560 Speaker 1: way for ruining the American dream and the lives of 16 00:01:21,640 --> 00:01:27,960 Speaker 1: millions of people. Fast forward to Peter Thiel, an ultrawealthy 17 00:01:28,200 --> 00:01:33,960 Speaker 1: white man who via tweet, is able to destabilize the 18 00:01:34,000 --> 00:01:39,640 Speaker 1: banking industry, and I think to myself, why the fuck 19 00:01:39,959 --> 00:01:44,200 Speaker 1: do these people have so much fucking power. And it's 20 00:01:44,280 --> 00:01:49,480 Speaker 1: because we've allowed for the rich to become ultrawealthy and 21 00:01:49,560 --> 00:01:53,120 Speaker 1: that we have the regulators right, those that are supposed 22 00:01:53,160 --> 00:01:59,920 Speaker 1: to regulate our institutions received donations from the very people 23 00:02:00,080 --> 00:02:03,360 Speaker 1: that they are responsible for regulating. And then we wonder 24 00:02:03,520 --> 00:02:08,000 Speaker 1: why shit like this happens because they just buide their 25 00:02:08,080 --> 00:02:12,239 Speaker 1: time until their friends and cronies come into office, they 26 00:02:12,280 --> 00:02:14,600 Speaker 1: get their ways so that they can buy their fifth 27 00:02:14,600 --> 00:02:19,399 Speaker 1: house or their fifth fucking plane. You should not have 28 00:02:19,800 --> 00:02:23,360 Speaker 1: that type of excessive wealth when there are people that 29 00:02:23,400 --> 00:02:28,080 Speaker 1: are going hungry, where the federal government is totally fine 30 00:02:28,200 --> 00:02:33,519 Speaker 1: to step in and bail out right these fucking banks. 31 00:02:34,080 --> 00:02:37,720 Speaker 1: But when it comes to those that are accessing trying 32 00:02:37,880 --> 00:02:41,080 Speaker 1: their damned this to access the American dream via student 33 00:02:41,240 --> 00:02:45,920 Speaker 1: loans to go to college, Oh no, you see fights 34 00:02:45,960 --> 00:02:49,760 Speaker 1: and lawsuits being waged to make sure that the middle 35 00:02:49,800 --> 00:02:52,680 Speaker 1: class and the working class remain exactly in the place 36 00:02:52,720 --> 00:02:57,200 Speaker 1: that they are. There won't be any fucking lawsuits that 37 00:02:57,240 --> 00:03:00,440 Speaker 1: are waged and political fights that are fought over this. 38 00:03:02,080 --> 00:03:05,040 Speaker 1: I'm just so sick of the shit, you know, I'm 39 00:03:05,080 --> 00:03:07,400 Speaker 1: so sick of the shit, and I'm so sick of 40 00:03:07,480 --> 00:03:13,919 Speaker 1: being lied to. It's greed, folks, And unlike Gordon Geko 41 00:03:14,040 --> 00:03:16,959 Speaker 1: said back on Wall Street, greed is not good. Greed 42 00:03:17,080 --> 00:03:23,560 Speaker 1: is actually fucking catastrophic. So coming up next my conversation 43 00:03:23,919 --> 00:03:33,080 Speaker 1: with my friend Jennifer Tobb, the author of Big Dirty Money, Folks. 44 00:03:33,120 --> 00:03:36,080 Speaker 1: I am always so thrilled when a friend of the 45 00:03:36,080 --> 00:03:39,040 Speaker 1: show and friend of mine, the author of the Big 46 00:03:39,200 --> 00:03:43,000 Speaker 1: Dirty Money, Jennifer Tobb, makes the time to join us 47 00:03:43,040 --> 00:03:47,520 Speaker 1: on woke a f Because, folks, when there is capitalism 48 00:03:47,600 --> 00:03:52,400 Speaker 1: and greed and finances a myths in this country, there's 49 00:03:52,400 --> 00:03:55,080 Speaker 1: only one person that I go to to make sense 50 00:03:55,640 --> 00:03:59,040 Speaker 1: of the nonsense, and that is you, Jen Tobb. So 51 00:03:59,440 --> 00:04:02,320 Speaker 1: let's jump right in. All of the news. All the 52 00:04:02,400 --> 00:04:07,080 Speaker 1: rage right now is a brown Silicon Valley Bank and 53 00:04:07,240 --> 00:04:10,720 Speaker 1: the fact that the federal government has seized Silicon Valley 54 00:04:10,720 --> 00:04:16,280 Speaker 1: Bank as well as I believe Signature Bank, another regional bank, 55 00:04:16,560 --> 00:04:21,880 Speaker 1: that essentially there has been a run on these banks 56 00:04:21,960 --> 00:04:27,120 Speaker 1: with depositors feeling uncertain that their deposits of over two 57 00:04:27,240 --> 00:04:30,520 Speaker 1: hundred and fifty thousand dollars will be covered. When the 58 00:04:30,760 --> 00:04:33,200 Speaker 1: federal government says we got you and we're not going 59 00:04:33,240 --> 00:04:38,640 Speaker 1: to use taxpayer dollars in order to ensure your deposits. 60 00:04:38,720 --> 00:04:42,279 Speaker 1: But we're going to use this quote unquote pot that 61 00:04:42,400 --> 00:04:46,159 Speaker 1: all banks pay into when things like this happen. Jen, 62 00:04:46,680 --> 00:04:51,560 Speaker 1: you give us your fifty thousand foot view of what 63 00:04:52,240 --> 00:04:56,840 Speaker 1: happened with Silicon Valley Bank and Signature Bank and what 64 00:04:57,080 --> 00:05:03,640 Speaker 1: is happening in banking right now. Well, I'm so glad 65 00:05:03,680 --> 00:05:08,800 Speaker 1: you asked me, because I just finished working on a 66 00:05:08,839 --> 00:05:11,200 Speaker 1: piece that when I have it, i'll share it. I'm 67 00:05:11,200 --> 00:05:15,000 Speaker 1: writing an opinion piece for MSNBC, so it's fresh in 68 00:05:15,080 --> 00:05:19,000 Speaker 1: my mind. So one thing before I kind of go 69 00:05:19,120 --> 00:05:21,919 Speaker 1: through the really key details that I think are easy 70 00:05:21,920 --> 00:05:26,039 Speaker 1: to understand if you actually pay attention, are not just 71 00:05:26,160 --> 00:05:30,320 Speaker 1: spinning people for a living. You mentioned that there's this 72 00:05:30,400 --> 00:05:35,239 Speaker 1: promise that taxpayers will never pay for these bailouts because 73 00:05:35,279 --> 00:05:38,960 Speaker 1: it's going to come out of some fund banks pay into, well, 74 00:05:39,560 --> 00:05:42,880 Speaker 1: the deposit Insurance fund that the FDIC has. If it 75 00:05:42,960 --> 00:05:46,640 Speaker 1: runs dry, it gets refilled. But in these situations, yes, 76 00:05:46,720 --> 00:05:50,680 Speaker 1: there will be a future assessment on banks. That's the promise. 77 00:05:51,120 --> 00:05:54,000 Speaker 1: The problem is back during the Dodd Frank era, right 78 00:05:54,000 --> 00:05:55,960 Speaker 1: after the two thousand and eight financial crisis, I was 79 00:05:55,960 --> 00:06:00,960 Speaker 1: one of the people helping work and encourage stronger legislation 80 00:06:01,000 --> 00:06:03,880 Speaker 1: than we actually got. And one thing we were arguing 81 00:06:03,960 --> 00:06:10,800 Speaker 1: for was to pre fund that rescue fund. We were 82 00:06:11,839 --> 00:06:15,880 Speaker 1: we were looking, we were actually looking for a special 83 00:06:15,920 --> 00:06:21,480 Speaker 1: assessment of one hundred and fifty billion dollars to prefund, 84 00:06:22,560 --> 00:06:26,080 Speaker 1: and that got shot down. People said it would encourage 85 00:06:26,600 --> 00:06:29,320 Speaker 1: banks to fail. Not really. No one wanted to pay 86 00:06:29,320 --> 00:06:32,360 Speaker 1: into the prefund. So that's one thing. But let's let's 87 00:06:32,360 --> 00:06:35,799 Speaker 1: talk about what happened. And before I get the details, 88 00:06:36,160 --> 00:06:38,200 Speaker 1: I want to make clear a couple of things. One, 89 00:06:38,360 --> 00:06:41,560 Speaker 1: this is not the same thing as the global financial 90 00:06:41,560 --> 00:06:44,240 Speaker 1: meltdown of two thousand and eight. There is going to 91 00:06:44,279 --> 00:06:47,719 Speaker 1: be contagion, but it's not going to be as bad. 92 00:06:48,000 --> 00:06:53,919 Speaker 1: That's one thing too, It's not no big deal. And three, 93 00:06:54,520 --> 00:06:58,000 Speaker 1: I blame not just Congress, but I also blame the 94 00:06:58,040 --> 00:07:02,880 Speaker 1: FED who made who took advantage of a giant rollback 95 00:07:03,279 --> 00:07:06,599 Speaker 1: of the Dodd Frank Law in twenty eighteen and made 96 00:07:06,600 --> 00:07:09,800 Speaker 1: it worse. And I don't want to be here saying 97 00:07:09,840 --> 00:07:11,440 Speaker 1: I told you so, but I flip and a half 98 00:07:11,520 --> 00:07:13,040 Speaker 1: to say, you know what I wrote about this in 99 00:07:13,080 --> 00:07:15,680 Speaker 1: two thousand and eight, I told you so. You know, 100 00:07:15,760 --> 00:07:18,080 Speaker 1: so whatever I mean, why wasn't the only one? It's 101 00:07:18,080 --> 00:07:20,600 Speaker 1: not about that I did. What makes me the most 102 00:07:20,680 --> 00:07:23,560 Speaker 1: angry about this situation is this would not have happened 103 00:07:24,240 --> 00:07:27,600 Speaker 1: if Congress had not under roll back. Dodd Frank and 104 00:07:27,720 --> 00:07:30,400 Speaker 1: Trump signed that law. But the problem is in this case, Daniel, 105 00:07:30,400 --> 00:07:32,720 Speaker 1: are going to be perfectly Frank. It wasn't just the 106 00:07:32,760 --> 00:07:37,880 Speaker 1: Republicans in Congress. There were big chunk of supporters at 107 00:07:37,920 --> 00:07:44,240 Speaker 1: that time. The House was in Democratic control, and though 108 00:07:44,240 --> 00:07:47,600 Speaker 1: the Senate wasn't. Mitch McConnell needed at least he needed 109 00:07:47,640 --> 00:07:50,320 Speaker 1: sixty votes to get this through, and he didn't have them, 110 00:07:50,320 --> 00:07:55,880 Speaker 1: but he got the votes he needed from Democrats. It's infuriating. Okay. 111 00:07:56,160 --> 00:07:58,640 Speaker 1: One last thing is Silicon Valley Bank, which I'm sure 112 00:07:58,640 --> 00:08:00,880 Speaker 1: you've heard this in the news. Silicon Valley Bank was 113 00:08:00,920 --> 00:08:04,640 Speaker 1: one of the bank's lobbying for the rollback yep, okay, 114 00:08:04,640 --> 00:08:07,960 Speaker 1: and in fact, they thought it was laughable that the 115 00:08:08,240 --> 00:08:14,320 Speaker 1: kinds of restrictions and oversight on them should be should exist. 116 00:08:14,400 --> 00:08:16,960 Speaker 1: They called them, you know, they called themselves a mid 117 00:08:17,000 --> 00:08:22,000 Speaker 1: size bank, which at the time they were. And then 118 00:08:22,040 --> 00:08:25,680 Speaker 1: once the ceiling for this special special heightened scrutiny, and 119 00:08:25,800 --> 00:08:29,240 Speaker 1: stress tests and stuff was fifty billion dollars. As soon 120 00:08:29,240 --> 00:08:32,319 Speaker 1: as that was lifted to two fifty low and behold, 121 00:08:32,600 --> 00:08:35,640 Speaker 1: they did rapid growth. And they grew from a bank 122 00:08:35,760 --> 00:08:40,120 Speaker 1: just at that level well above it until they failed 123 00:08:40,120 --> 00:08:43,760 Speaker 1: two hundred billion. That never would have happened without this rollback. 124 00:08:44,559 --> 00:08:46,319 Speaker 1: I'm glad that you brought that up, because I was 125 00:08:46,360 --> 00:08:49,360 Speaker 1: going to ask for an explanation for people to understand 126 00:08:50,320 --> 00:08:52,760 Speaker 1: what the threshold was, what they had to have in 127 00:08:52,880 --> 00:08:57,480 Speaker 1: holding when they needed to begin stress testing, and how 128 00:08:57,679 --> 00:09:02,400 Speaker 1: that number was d billion. And at the time that 129 00:09:02,559 --> 00:09:05,880 Speaker 1: Silicon Valley Bank was seized by the FEDS, they had 130 00:09:05,920 --> 00:09:09,480 Speaker 1: a holding of two hundred and nine billion dollars. Right 131 00:09:09,880 --> 00:09:12,120 Speaker 1: on paper, they're well with the wa wait wait wait 132 00:09:12,120 --> 00:09:15,800 Speaker 1: wait on paper on paper, on paper, yeah, they're well 133 00:09:15,840 --> 00:09:20,280 Speaker 1: within though. Right there, they were well within the new 134 00:09:21,200 --> 00:09:27,120 Speaker 1: deregulation that Donald Trump signed into twenty eighteen because they 135 00:09:27,120 --> 00:09:30,319 Speaker 1: didn't make it to two fifty. They got to two 136 00:09:30,440 --> 00:09:34,480 Speaker 1: hundred and then their whole ship started to crumble. Explain 137 00:09:34,679 --> 00:09:41,679 Speaker 1: to us what exactly happened jen with the they got 138 00:09:41,720 --> 00:09:44,280 Speaker 1: to t hold, like, what exactly was happening? And also 139 00:09:46,240 --> 00:09:53,000 Speaker 1: what do we think the executives were doing when they 140 00:09:53,040 --> 00:09:57,840 Speaker 1: started to sell off their shares about a week or 141 00:09:57,880 --> 00:10:04,120 Speaker 1: so before the actual lapse of the bank. Okay, so 142 00:10:04,160 --> 00:10:06,920 Speaker 1: two things. One for those folks who are interested sort 143 00:10:06,920 --> 00:10:11,680 Speaker 1: of generally in what is banking about and how banks fail, 144 00:10:12,040 --> 00:10:14,760 Speaker 1: I have a new substack called Follow the Money, and 145 00:10:14,760 --> 00:10:17,120 Speaker 1: I just put something up. My Monday column is always 146 00:10:17,160 --> 00:10:19,280 Speaker 1: called on the Money, and I put an excerpt from 147 00:10:19,360 --> 00:10:23,080 Speaker 1: testimony of mind before the Senate Banking Committee in twenty sixteen, 148 00:10:23,640 --> 00:10:27,040 Speaker 1: and that testimony was about how these things called capital 149 00:10:27,040 --> 00:10:31,520 Speaker 1: and liquidity should not be loosened up for banks. I'm 150 00:10:31,559 --> 00:10:33,920 Speaker 1: not going to get into what that is, but if 151 00:10:33,920 --> 00:10:37,080 Speaker 1: you read that, I think it will become clear. But 152 00:10:37,280 --> 00:10:40,000 Speaker 1: the fundamentals there which are kind of necessary for talking 153 00:10:40,040 --> 00:10:44,199 Speaker 1: about this is that, as everyone probably knows, banks take 154 00:10:44,240 --> 00:10:49,480 Speaker 1: deposits and banks make loans. People know that, but banks 155 00:10:49,520 --> 00:10:55,240 Speaker 1: don't just take deposits and make loans. They also they 156 00:10:55,280 --> 00:11:00,320 Speaker 1: also take that deposit money and invest it in other 157 00:11:00,400 --> 00:11:04,320 Speaker 1: things like treasury securities and mortgage backed securities and so on. Right. 158 00:11:05,520 --> 00:11:08,120 Speaker 1: People also don't think if you have a deposits in 159 00:11:08,120 --> 00:11:10,400 Speaker 1: a bank, you know, Daniel, you just mentioned that it's 160 00:11:10,400 --> 00:11:12,160 Speaker 1: insured up to two hundred and fifty thousand. It used 161 00:11:12,160 --> 00:11:14,920 Speaker 1: to be one hundred thousand. But you are essentially a 162 00:11:15,040 --> 00:11:19,720 Speaker 1: lender to the bank right when you're a depository. At anytime, 163 00:11:19,760 --> 00:11:25,120 Speaker 1: you can ask for your money back. Similarly, the loans. 164 00:11:25,160 --> 00:11:27,440 Speaker 1: If the bank makes a loan, a mortgage loan, or 165 00:11:27,480 --> 00:11:30,640 Speaker 1: a commercial loan to a business, those loans are the 166 00:11:30,679 --> 00:11:34,120 Speaker 1: bank's assets. They make money because they pay an interest, 167 00:11:34,800 --> 00:11:37,400 Speaker 1: and hopefully when you sell them, you sell them for 168 00:11:37,400 --> 00:11:39,400 Speaker 1: a profit or at least break even, so you can 169 00:11:39,520 --> 00:11:42,160 Speaker 1: sort of think of it that way. In traditional banking, 170 00:11:42,160 --> 00:11:44,800 Speaker 1: the way the bank makes money is the amount of 171 00:11:44,840 --> 00:11:47,959 Speaker 1: interest it's bringing in on its loans. Let's say it's 172 00:11:48,000 --> 00:11:50,240 Speaker 1: bringing in you know, six This would be a dream, 173 00:11:50,280 --> 00:11:53,199 Speaker 1: but this is the example people give. Historically, bank bank 174 00:11:53,800 --> 00:11:58,440 Speaker 1: has loans at pay six percent. It pays depositors three percent, 175 00:11:59,080 --> 00:12:01,200 Speaker 1: and it makes a difference the money on the spread. 176 00:12:01,400 --> 00:12:03,920 Speaker 1: That's kind of the general idea of banking. Let's think 177 00:12:03,960 --> 00:12:06,040 Speaker 1: of something a little bit different when you think about 178 00:12:06,120 --> 00:12:08,679 Speaker 1: banking in reality, though, too. Have you ever noticed that 179 00:12:08,720 --> 00:12:09,959 Speaker 1: if you want to get let's say you want to 180 00:12:09,960 --> 00:12:15,520 Speaker 1: get a bank loan for a mortgage to buy a house, 181 00:12:15,600 --> 00:12:17,120 Speaker 1: often the bank will say you know, we'll give you 182 00:12:17,160 --> 00:12:21,360 Speaker 1: a cheaper rate if you if you bank with us, 183 00:12:21,559 --> 00:12:25,040 Speaker 1: right if you keep them. Similarly, here, let's say you 184 00:12:25,080 --> 00:12:27,199 Speaker 1: went to something like Silicon Valley Bank and you were 185 00:12:27,600 --> 00:12:29,439 Speaker 1: a business that wanted to get a loan from them, 186 00:12:29,600 --> 00:12:32,480 Speaker 1: and let's say they gave you a million you needed, 187 00:12:32,559 --> 00:12:34,679 Speaker 1: like five million dollars or whatever. They want you to 188 00:12:34,760 --> 00:12:36,320 Speaker 1: keep that money in their bank. So though on the 189 00:12:36,360 --> 00:12:38,800 Speaker 1: one hand, the five million is showing up is a 190 00:12:38,840 --> 00:12:41,120 Speaker 1: loan as an asset of theirs, on the other hand, 191 00:12:41,160 --> 00:12:44,319 Speaker 1: you've now got five million on deposit with them. Well, 192 00:12:44,320 --> 00:12:46,560 Speaker 1: some of it you're going to be using to buy stuff, 193 00:12:46,760 --> 00:12:48,800 Speaker 1: but you're also going to be whenever you bring in 194 00:12:48,840 --> 00:12:51,120 Speaker 1: money from customers, you're going to be depositing with them. 195 00:12:51,200 --> 00:12:53,839 Speaker 1: So there's a little bit of an overlap relationship. Okay, 196 00:12:53,960 --> 00:12:56,400 Speaker 1: so let's let's let's leave that. Let's leave that be 197 00:12:56,559 --> 00:12:58,640 Speaker 1: so you understand how this works. Now, one of the 198 00:12:58,640 --> 00:13:03,880 Speaker 1: biggest risk bank face is that this maturity transformation deposits 199 00:13:03,880 --> 00:13:06,080 Speaker 1: can be taken out on demand. But the loan, that 200 00:13:06,120 --> 00:13:09,960 Speaker 1: mortgage loan, it's thirty years, or that corporate loan it's 201 00:13:10,000 --> 00:13:14,679 Speaker 1: ten years. So only if you get too many depositors 202 00:13:14,720 --> 00:13:17,240 Speaker 1: saying I want my money. Now, how does the bank 203 00:13:17,760 --> 00:13:21,240 Speaker 1: pay the depositors? They have to sell the loans. That's fine, 204 00:13:21,280 --> 00:13:24,280 Speaker 1: you would think, except in a rising interest rate environment. 205 00:13:25,400 --> 00:13:27,480 Speaker 1: We are in a rising interest rate environment. And here's why. 206 00:13:27,440 --> 00:13:28,760 Speaker 1: I remember how I told you, Okay, what if you 207 00:13:28,800 --> 00:13:30,640 Speaker 1: have some loans on the books. Let's say your loans 208 00:13:30,640 --> 00:13:33,440 Speaker 1: in the books are only paying two percent interest. But 209 00:13:33,520 --> 00:13:35,520 Speaker 1: let's say the Fed is raised rates and now it's 210 00:13:35,559 --> 00:13:38,240 Speaker 1: four percent. That means no one wants to buy your 211 00:13:38,320 --> 00:13:41,520 Speaker 1: dumb two percent paying loan. If you're trying to sell 212 00:13:41,559 --> 00:13:43,720 Speaker 1: that loan and you keep it on the books at 213 00:13:43,760 --> 00:13:45,200 Speaker 1: the price you bought it at, Let's say that you 214 00:13:45,240 --> 00:13:47,880 Speaker 1: bought the loan for one hundred thousand dollars, it's not 215 00:13:47,920 --> 00:13:50,040 Speaker 1: worth as much anymore because someone can go out there 216 00:13:50,040 --> 00:13:52,160 Speaker 1: and buy another bank could buy a loan from someone 217 00:13:52,160 --> 00:13:55,560 Speaker 1: else that's paying in four percent interest. This is a 218 00:13:56,080 --> 00:14:00,440 Speaker 1: lower yielding loan. So the problem here is this banks 219 00:14:00,480 --> 00:14:02,920 Speaker 1: like SVB when it grew, remember I told you it 220 00:14:02,960 --> 00:14:06,680 Speaker 1: was below fifty billion, yep, it grew super fast, and 221 00:14:06,800 --> 00:14:09,800 Speaker 1: the way it grew super fast between twenty eighteen and 222 00:14:09,960 --> 00:14:14,000 Speaker 1: twenty twenty one, like huge, huge, growth is it bought 223 00:14:14,040 --> 00:14:17,600 Speaker 1: a lot of treasury bonds and mortgage backed securities in 224 00:14:17,600 --> 00:14:21,040 Speaker 1: that era, but those were very very low interest rates. 225 00:14:21,560 --> 00:14:24,560 Speaker 1: They didn't manage their interest rate risk and they didn't 226 00:14:24,560 --> 00:14:27,200 Speaker 1: have to write down those loans. So those loans that 227 00:14:27,280 --> 00:14:30,160 Speaker 1: they had, you know, you know, let's say you have 228 00:14:30,200 --> 00:14:33,360 Speaker 1: one hundred billion dollars worth of loans that are not 229 00:14:33,880 --> 00:14:36,160 Speaker 1: worth one hundred billion anymore because the interest rates are 230 00:14:36,160 --> 00:14:38,400 Speaker 1: so low and people want to buy higher yielding loans. 231 00:14:38,600 --> 00:14:40,840 Speaker 1: The way the county rules work is the Fed doesn't 232 00:14:40,840 --> 00:14:44,200 Speaker 1: require the bank even as the interest rates up go 233 00:14:44,400 --> 00:14:47,760 Speaker 1: up to realize Those are called unrealized losses. So it's 234 00:14:47,760 --> 00:14:51,280 Speaker 1: a big it's a big landmine on the balance sheet. 235 00:14:51,920 --> 00:14:55,440 Speaker 1: Everything is fine until depositors want their money out. And 236 00:14:55,520 --> 00:14:57,360 Speaker 1: if they want their money out and you go to 237 00:14:57,400 --> 00:15:00,600 Speaker 1: sell it a firesale those loans, you're to have a loss. 238 00:15:00,640 --> 00:15:04,200 Speaker 1: That's exactly what happened to SVB last week. So SVB, 239 00:15:04,360 --> 00:15:07,200 Speaker 1: which grew really rapidly, didn't manage its interest rate risk 240 00:15:07,280 --> 00:15:10,560 Speaker 1: over the years, didn't hedge it properly, and frankly didn't 241 00:15:10,640 --> 00:15:14,720 Speaker 1: have to GM right because in terms of what is 242 00:15:14,800 --> 00:15:18,640 Speaker 1: required right, they didn't break the law yes, right, No, 243 00:15:18,760 --> 00:15:21,000 Speaker 1: they didn't break the law. And what's even worse about this, 244 00:15:21,040 --> 00:15:23,520 Speaker 1: I remember, I'm talking about these these assets that they have. 245 00:15:23,960 --> 00:15:27,000 Speaker 1: What I didn't mention that's really important that you alluded 246 00:15:27,000 --> 00:15:30,160 Speaker 1: to at the beginning, is it has all these depositors. Right, 247 00:15:30,200 --> 00:15:32,800 Speaker 1: so it had two hundred nine billion in assets, it 248 00:15:32,880 --> 00:15:35,880 Speaker 1: only had one hundred and seventy five billion in customer deposits. 249 00:15:35,920 --> 00:15:38,880 Speaker 1: The problem was these were not normal customer deposits. It 250 00:15:39,040 --> 00:15:41,280 Speaker 1: is very unusual if you look at a chart of 251 00:15:41,440 --> 00:15:45,240 Speaker 1: these the nature of these deposits. Over ninety percent of 252 00:15:45,280 --> 00:15:50,200 Speaker 1: those deposits were uninsured businesses who put their money there 253 00:15:50,600 --> 00:15:53,120 Speaker 1: above the two hundred and fifty thousand dollars per account. 254 00:15:54,440 --> 00:15:57,920 Speaker 1: Some of those businesses were businesses that were startups or 255 00:15:57,960 --> 00:16:02,920 Speaker 1: in the crypto space. Those these are very runnable assets 256 00:16:02,920 --> 00:16:07,240 Speaker 1: which specialized in runnable liabilities. Remember, and I think what 257 00:16:07,480 --> 00:16:09,480 Speaker 1: SVB often did as they said, if you want to 258 00:16:10,280 --> 00:16:11,680 Speaker 1: us to give you a loan, you have to put 259 00:16:11,680 --> 00:16:13,440 Speaker 1: your deposits with us. I'm not sure if they always 260 00:16:13,440 --> 00:16:14,880 Speaker 1: said that, but I get the sense that that might 261 00:16:14,880 --> 00:16:19,240 Speaker 1: have been a goodie that they wanted or they asked for. Okay, 262 00:16:19,240 --> 00:16:22,960 Speaker 1: so these are highly runnable deposits. We call this hot money, 263 00:16:23,640 --> 00:16:27,840 Speaker 1: so hotter than most because it's it's businesses that are 264 00:16:27,880 --> 00:16:29,960 Speaker 1: more likely to take their money in and out for payroll. 265 00:16:30,160 --> 00:16:32,080 Speaker 1: But also in this case, whenever they had the money 266 00:16:32,120 --> 00:16:34,400 Speaker 1: over two hundred and fifty thousand, they knew if this 267 00:16:34,440 --> 00:16:37,480 Speaker 1: bank failed, they didn't want to be last in line, 268 00:16:37,560 --> 00:16:39,600 Speaker 1: and they knew that the FDIC didn't ensure this. They 269 00:16:39,640 --> 00:16:41,640 Speaker 1: could have had to take haircuts or lost a good 270 00:16:41,680 --> 00:16:45,560 Speaker 1: chunk of their deposit. So what happens is like a 271 00:16:45,600 --> 00:16:49,760 Speaker 1: few days before the run fda C Chairman Martin Gruenberg, 272 00:16:49,800 --> 00:16:51,880 Speaker 1: and the FDAC is the one that runs this deposit 273 00:16:51,920 --> 00:16:56,280 Speaker 1: insurance fund. He mentioned that across the banking sector there 274 00:16:56,280 --> 00:16:59,160 Speaker 1: were substantial unrealized losses. These are the holes in the 275 00:16:59,200 --> 00:17:01,280 Speaker 1: balance sheet where almost like you've got two set of books. 276 00:17:01,400 --> 00:17:04,240 Speaker 1: The official set of books are holding them at purchase value, 277 00:17:04,520 --> 00:17:06,760 Speaker 1: but the actual reality is they're really not worth that 278 00:17:06,840 --> 00:17:08,879 Speaker 1: if they had to be sold. He said, the banking 279 00:17:08,920 --> 00:17:12,359 Speaker 1: system has over six hundred and twenty billion dollars and 280 00:17:12,440 --> 00:17:17,919 Speaker 1: unrealized losses. He says this there are folks that are 281 00:17:17,960 --> 00:17:21,200 Speaker 1: sniffing around like Peter Teal and other people in Silicon Valley, 282 00:17:21,240 --> 00:17:23,440 Speaker 1: and they put out the bat signal. First Peter Teal 283 00:17:23,520 --> 00:17:28,800 Speaker 1: sells all of his cells, He withdraws all of his 284 00:17:30,320 --> 00:17:34,760 Speaker 1: money he has on deposit. He has something called a 285 00:17:34,800 --> 00:17:37,320 Speaker 1: founder's fund. He said, he put withdraws all of his 286 00:17:37,400 --> 00:17:41,080 Speaker 1: money with SVB. And then someone else puts out a 287 00:17:41,119 --> 00:17:43,240 Speaker 1: bad signal and they said get your money out. I 288 00:17:43,320 --> 00:17:45,320 Speaker 1: mean think he did too. And so there's a run. 289 00:17:45,400 --> 00:17:49,119 Speaker 1: Everyone wants their money. So what does the CEO of 290 00:17:49,800 --> 00:17:52,440 Speaker 1: SVB have to do. They have to sell. And when 291 00:17:52,440 --> 00:17:55,280 Speaker 1: they went and sold around twenty billion dollars of securities, 292 00:17:55,280 --> 00:17:58,400 Speaker 1: they had a loss of one point eight billion. So 293 00:17:58,920 --> 00:18:00,959 Speaker 1: you know when we're talking about yeah, in theory, they 294 00:18:00,960 --> 00:18:03,719 Speaker 1: had a capital cushion in there. You know, they had 295 00:18:03,880 --> 00:18:06,080 Speaker 1: two hundred and nine in assets in one hundred and 296 00:18:06,119 --> 00:18:08,720 Speaker 1: seventy five in deposits. And really, really that two hundred 297 00:18:08,720 --> 00:18:11,320 Speaker 1: and nine wasn't We're gonna bear that out. So this 298 00:18:11,440 --> 00:18:15,920 Speaker 1: run continues. This is on Wednesday. On Thursday, they said 299 00:18:15,920 --> 00:18:17,760 Speaker 1: they had to raise they want to raise capital, No one, 300 00:18:17,960 --> 00:18:21,280 Speaker 1: They couldn't find many takers to raise capital. Um you know, 301 00:18:21,320 --> 00:18:24,080 Speaker 1: there was new new stock in new preferred stock, and 302 00:18:24,160 --> 00:18:28,440 Speaker 1: so basically the stock price plummets on Thursday, literally the 303 00:18:28,520 --> 00:18:31,080 Speaker 1: day after they announced they need to raise more money 304 00:18:31,119 --> 00:18:34,359 Speaker 1: because of that, you know, fire sale, and then fear 305 00:18:34,400 --> 00:18:37,920 Speaker 1: spreads and the regulators in California sees the bank put 306 00:18:37,920 --> 00:18:42,000 Speaker 1: it under FDIC control. This is on on Thursday. On Friday, 307 00:18:42,760 --> 00:18:48,399 Speaker 1: UM on Friday the then I think I'm getting to Friday. 308 00:18:48,400 --> 00:18:51,200 Speaker 1: But anyway, at some point we have the FDIC announcing 309 00:18:51,720 --> 00:18:56,359 Speaker 1: that anyone who was insured will be be fine. We covered, 310 00:18:56,400 --> 00:18:59,600 Speaker 1: but not that people who were uninsure might get less. 311 00:19:00,040 --> 00:19:03,439 Speaker 1: And then then you know, everyone goes whining. You know, 312 00:19:03,480 --> 00:19:06,840 Speaker 1: all these uninsured depositors, which are largely businesses who knew 313 00:19:06,880 --> 00:19:09,240 Speaker 1: the risk, who knew they should have spread that money 314 00:19:09,280 --> 00:19:15,960 Speaker 1: across many banks and bank accounts. They complained enough that 315 00:19:15,960 --> 00:19:21,120 Speaker 1: that the regulators decided on Sunday. This is the FED, 316 00:19:21,200 --> 00:19:25,359 Speaker 1: the FDIC and Treasury, they decided that they would cover 317 00:19:25,520 --> 00:19:29,879 Speaker 1: all depositors, including including the uninsured. So they said that 318 00:19:29,920 --> 00:19:31,480 Speaker 1: on Sunday. And that's at the same time they did 319 00:19:31,480 --> 00:19:35,439 Speaker 1: the same thing for Signature Bank. In addition to this, 320 00:19:35,480 --> 00:19:39,480 Speaker 1: though besides that, showing that it's not just these two banks, 321 00:19:39,760 --> 00:19:42,400 Speaker 1: the FED announced us I knew what they call it 322 00:19:42,400 --> 00:19:45,359 Speaker 1: it's like a bailout facility. It's basically a fund to 323 00:19:45,480 --> 00:19:47,480 Speaker 1: bail out any other banks. And this reminds me the 324 00:19:47,560 --> 00:19:50,280 Speaker 1: Financial Crisis two thousand and eight because they basically said, 325 00:19:50,800 --> 00:19:56,040 Speaker 1: we will buy at par value, at face value, any securities, 326 00:19:56,160 --> 00:19:58,480 Speaker 1: like any of these low interest rate securities at other 327 00:19:58,560 --> 00:20:03,080 Speaker 1: banks have on their books, will pay the fake value 328 00:20:03,080 --> 00:20:05,680 Speaker 1: for them so that you don't have to experience these 329 00:20:05,760 --> 00:20:10,919 Speaker 1: unrealized losses. So, Jim, I know you're gonna lose your 330 00:20:10,920 --> 00:20:13,840 Speaker 1: mind right now. And are you thinking about student loans 331 00:20:13,920 --> 00:20:17,240 Speaker 1: right now? Because I know I'm thinking. I'm thinking about 332 00:20:17,320 --> 00:20:19,680 Speaker 1: a couple of things. And so I want to start 333 00:20:19,760 --> 00:20:22,880 Speaker 1: with Peter Deal. I want to start with him because 334 00:20:23,359 --> 00:20:31,800 Speaker 1: this goes to my belief in the fact that the 335 00:20:31,880 --> 00:20:38,600 Speaker 1: American all a dark system is out of fucking control. 336 00:20:39,680 --> 00:20:42,760 Speaker 1: That I want people to understand and all of the 337 00:20:42,880 --> 00:20:46,240 Speaker 1: rundown and economics one oh one and one oh two 338 00:20:46,320 --> 00:20:51,280 Speaker 1: that you gave us that it was one person that 339 00:20:51,520 --> 00:20:58,520 Speaker 1: started via tweet a run on Silicon Valley Bank, right, 340 00:20:58,640 --> 00:21:00,560 Speaker 1: this is and it was not the resident of the 341 00:21:00,640 --> 00:21:04,240 Speaker 1: United States, It was not the head of the Federal Reserve. 342 00:21:05,280 --> 00:21:10,920 Speaker 1: One ulture wealthy white man via tweet started a run 343 00:21:10,960 --> 00:21:19,960 Speaker 1: on this back. Yeah. Yeah, so here we are in 344 00:21:20,000 --> 00:21:23,760 Speaker 1: this to by the way, please it makes sense for him, 345 00:21:23,840 --> 00:21:27,280 Speaker 1: right because he apparently he I think he's that's the 346 00:21:27,280 --> 00:21:29,240 Speaker 1: bank aware to start us bank at and he's told 347 00:21:29,240 --> 00:21:30,800 Speaker 1: people to do it, and I think he has people 348 00:21:30,840 --> 00:21:33,800 Speaker 1: in My understanding is you know, his people investing his 349 00:21:33,880 --> 00:21:37,320 Speaker 1: funds go there. His doing that and getting the bad 350 00:21:37,359 --> 00:21:41,959 Speaker 1: signal out resulted in everyone organizing doing this run. And 351 00:21:42,000 --> 00:21:47,679 Speaker 1: then it resulted in these uninsured depositors being covered, I understand, 352 00:21:48,000 --> 00:21:50,639 Speaker 1: and covered because they organized. You should say, right, so 353 00:21:50,680 --> 00:21:52,560 Speaker 1: you're saying is this broken? Oh no, it's functioning how 354 00:21:52,600 --> 00:21:55,479 Speaker 1: they want it to function. No, it's functioning how they 355 00:21:55,520 --> 00:21:57,920 Speaker 1: want it to function. And when you say, oh, are 356 00:21:57,920 --> 00:22:00,800 Speaker 1: you thinking about student loans? Of course I am right, 357 00:22:00,840 --> 00:22:06,520 Speaker 1: of course I am, because again we are functioning inside 358 00:22:06,520 --> 00:22:09,200 Speaker 1: of a system that is built to make sure that 359 00:22:09,320 --> 00:22:13,320 Speaker 1: wealthy people remain whole. I mean where this is. You know, 360 00:22:13,440 --> 00:22:15,520 Speaker 1: when I listened to the oral argument at the Supreme 361 00:22:15,520 --> 00:22:17,760 Speaker 1: Court on the student loans and I wrote about this 362 00:22:17,880 --> 00:22:21,080 Speaker 1: for my substackt. The key thing, as you know, is 363 00:22:22,920 --> 00:22:25,159 Speaker 1: not the key reason why this is being attacked, but 364 00:22:25,160 --> 00:22:28,720 Speaker 1: the legal arguments are that the Department, that the Secretary 365 00:22:28,720 --> 00:22:31,840 Speaker 1: of Education didn't have the authority even though Congress gave 366 00:22:31,920 --> 00:22:35,080 Speaker 1: him emergency authority, including to cancel old student loans. They 367 00:22:35,080 --> 00:22:36,919 Speaker 1: didn't have the authority to do this even though he 368 00:22:36,960 --> 00:22:40,400 Speaker 1: did it, and that the Supreme Courts is second cast them. 369 00:22:40,440 --> 00:22:44,240 Speaker 1: Here we have the FED creating one of these facilities 370 00:22:44,240 --> 00:22:47,360 Speaker 1: to bail out the entire banking system using their authority 371 00:22:47,560 --> 00:22:50,480 Speaker 1: under thirteen three of the Federal Reserve Act, which is 372 00:22:50,600 --> 00:22:55,760 Speaker 1: less flip in clear than the Department of Educations authority was. 373 00:22:56,160 --> 00:22:57,840 Speaker 1: And you're not going to see I'll tell you, I 374 00:22:58,080 --> 00:23:00,640 Speaker 1: don't think we're going to see a challenge win at 375 00:23:00,640 --> 00:23:02,760 Speaker 1: the Supreme Court on this. I'm trying to remember, because 376 00:23:02,760 --> 00:23:05,439 Speaker 1: why would wealthy people challenge themselves? Well, there might have. 377 00:23:05,440 --> 00:23:08,359 Speaker 1: People are only going to challenge the poor, right that, 378 00:23:08,560 --> 00:23:11,080 Speaker 1: and challenge the less advantaged. What I need to go 379 00:23:11,119 --> 00:23:13,120 Speaker 1: back and look is I'm trying. I'm remembering that there 380 00:23:13,200 --> 00:23:17,120 Speaker 1: might have been back in twenty fifteen or sixteen, some 381 00:23:17,240 --> 00:23:19,960 Speaker 1: kind of challenge to this. I need to go back 382 00:23:19,960 --> 00:23:22,280 Speaker 1: and look. But I know it all the bailouts held up. 383 00:23:22,960 --> 00:23:24,840 Speaker 1: Maybe there's a challenge. I can't I actually go back 384 00:23:24,880 --> 00:23:27,000 Speaker 1: and look and see how it was treated at the time. 385 00:23:27,400 --> 00:23:33,800 Speaker 1: But fundamentally, um, you know, fundamentally, this is it's it's 386 00:23:34,320 --> 00:23:37,880 Speaker 1: it's not even about the law. It's a deeply unfair way. 387 00:23:37,880 --> 00:23:40,560 Speaker 1: These narratives are spies. You see all these people saying, oh, 388 00:23:40,640 --> 00:23:44,200 Speaker 1: don't think of it as these stupid bankers, think about 389 00:23:44,200 --> 00:23:46,320 Speaker 1: these poor depositors who are no better. And no, it's 390 00:23:46,320 --> 00:23:49,840 Speaker 1: not all Silicon Valley chieftains. This little lady you know who, 391 00:23:49,960 --> 00:23:52,520 Speaker 1: from wherever she's from. I saw this thing. I started 392 00:23:52,600 --> 00:23:55,000 Speaker 1: my own startup, and it's not just the big businesses. 393 00:23:55,040 --> 00:23:57,760 Speaker 1: It's me and you know, it's me and my five people. 394 00:23:57,800 --> 00:24:00,320 Speaker 1: And like their American dream, well, you know what, a 395 00:24:00,359 --> 00:24:02,080 Speaker 1: lot of us have an American dream. A lot of 396 00:24:02,119 --> 00:24:06,720 Speaker 1: students have American dreams, and they are just the I 397 00:24:06,760 --> 00:24:09,600 Speaker 1: even see there's some good people on the news talking 398 00:24:09,600 --> 00:24:12,399 Speaker 1: about this, but there's some people that I have seen, 399 00:24:12,600 --> 00:24:18,320 Speaker 1: some talking heads who keep emphasizing that, you know, it's 400 00:24:18,359 --> 00:24:21,040 Speaker 1: not just big businesses. You know what, Listen, anyone who 401 00:24:21,119 --> 00:24:22,919 Speaker 1: has more than two hundred and fifty thousand dollars in 402 00:24:22,960 --> 00:24:27,160 Speaker 1: a single account knew what they were getting themselves into. Period. 403 00:24:27,400 --> 00:24:29,520 Speaker 1: And I've seen people argue with me on Twitter saying, yeah, 404 00:24:29,520 --> 00:24:31,040 Speaker 1: but they couldn't have gotten as good of a rate 405 00:24:31,400 --> 00:24:33,080 Speaker 1: if they hadn't gone to this bank, and that's what 406 00:24:33,119 --> 00:24:35,439 Speaker 1: the bank probably required. I'm like, that's their choice. I 407 00:24:35,440 --> 00:24:37,879 Speaker 1: shouldn't have to bail out them for making that choice. 408 00:24:38,880 --> 00:24:41,800 Speaker 1: That's not or we need to have a different system 409 00:24:42,080 --> 00:24:45,879 Speaker 1: where we decide if the government's going to backstop this, 410 00:24:46,040 --> 00:24:48,840 Speaker 1: if the government's going to pay for a military, the 411 00:24:48,840 --> 00:24:51,479 Speaker 1: government should pay for school, should pay for It's just 412 00:24:51,600 --> 00:24:54,919 Speaker 1: amazing to me that when there's this thing that I 413 00:24:54,960 --> 00:24:56,880 Speaker 1: wrote in the piece, I don't make it through the edit. 414 00:24:56,960 --> 00:25:02,000 Speaker 1: But they're just like, there are no atheists, foxholes, there 415 00:25:02,040 --> 00:25:07,239 Speaker 1: are no capitalists and bank failures. No, because they're all 416 00:25:07,280 --> 00:25:11,800 Speaker 1: socialists at that point, right they were before. I mean, yeah, 417 00:25:11,960 --> 00:25:17,560 Speaker 1: it becomes so stark, Jim. I guess is the injustices, 418 00:25:17,720 --> 00:25:23,200 Speaker 1: the inequities, the fact that the ultrawealthy are just going 419 00:25:23,240 --> 00:25:25,439 Speaker 1: to continue to get wealthy, are going to continue to 420 00:25:25,480 --> 00:25:30,040 Speaker 1: be made whole, and they are made whole by causing 421 00:25:30,119 --> 00:25:34,800 Speaker 1: holes in the middle class and in the working class. 422 00:25:35,560 --> 00:25:40,560 Speaker 1: And until we actually have a government that sees the 423 00:25:40,640 --> 00:25:44,080 Speaker 1: needs of the middle class and the working class and 424 00:25:44,080 --> 00:25:48,560 Speaker 1: the poor above the ultrawealthy. Nothing is ever going to change. 425 00:25:48,880 --> 00:25:50,760 Speaker 1: And the fact is is that, you know, much in 426 00:25:50,800 --> 00:25:53,320 Speaker 1: the same way that we look to the police to 427 00:25:53,440 --> 00:25:58,400 Speaker 1: write police reports with accuracy about their own wrongdoing, we 428 00:25:58,480 --> 00:26:01,639 Speaker 1: look to the federal government, which is filled with people 429 00:26:01,680 --> 00:26:06,920 Speaker 1: who receive donations from the very people who they are 430 00:26:06,960 --> 00:26:12,879 Speaker 1: in charge of regulating. And until that actually stops, which 431 00:26:12,880 --> 00:26:18,720 Speaker 1: it won't, this will continue over and over and over again. 432 00:26:18,920 --> 00:26:24,439 Speaker 1: Every five, ten, fifteen, twenty fucking years, this will be 433 00:26:24,480 --> 00:26:27,680 Speaker 1: the headline. People will say, we'll need more regulation, a 434 00:26:27,800 --> 00:26:31,040 Speaker 1: Republican will get in office, well, you know, and then fascism. 435 00:26:31,080 --> 00:26:33,199 Speaker 1: We'll just rain down because we won't have democracy to 436 00:26:33,200 --> 00:26:39,600 Speaker 1: move forward. So what happens, Well, what I'm hoping for 437 00:26:39,680 --> 00:26:42,600 Speaker 1: is something I saw my friend Dennis Kelleher suggest. He 438 00:26:42,680 --> 00:26:46,280 Speaker 1: runs Better Markets, which is a nonprofit, nonpartisan kind of 439 00:26:46,320 --> 00:26:50,080 Speaker 1: think tank around market functioning. He's a good guy and 440 00:26:50,119 --> 00:26:54,919 Speaker 1: he wants there to be an independent investigation of what 441 00:26:55,160 --> 00:26:57,480 Speaker 1: went down at the FED. Right now, someone it inside 442 00:26:57,520 --> 00:26:59,080 Speaker 1: the FED is said, we're going to do this thing 443 00:26:59,080 --> 00:27:02,080 Speaker 1: and ourselves and put out a report by May and 444 00:27:02,160 --> 00:27:03,520 Speaker 1: it is like, no, and it shouldn't even be. The 445 00:27:03,600 --> 00:27:07,720 Speaker 1: Inspector General for the Fedruyu have some independent other inspector 446 00:27:07,800 --> 00:27:10,720 Speaker 1: general look at what happened, because this was a tremendous 447 00:27:10,760 --> 00:27:14,359 Speaker 1: failure of supervision. Even though this bank managed to get 448 00:27:14,400 --> 00:27:17,879 Speaker 1: out of some of the more serious oversight, there's no 449 00:27:17,960 --> 00:27:19,800 Speaker 1: reason why it should have been taking on this kind 450 00:27:19,840 --> 00:27:22,600 Speaker 1: of interest rate risk or having such a non diversified 451 00:27:22,720 --> 00:27:27,240 Speaker 1: funding on its liability side. And the San Francisco FED 452 00:27:27,560 --> 00:27:29,680 Speaker 1: as well as the FED um, you know, the central 453 00:27:29,680 --> 00:27:35,280 Speaker 1: Bank itself needs to be investigated. Yeah. Yeah, and of 454 00:27:35,320 --> 00:27:37,800 Speaker 1: course you just saw that. But but the biggest the 455 00:27:37,840 --> 00:27:39,720 Speaker 1: other thing is, you know, we need to as you 456 00:27:39,720 --> 00:27:42,080 Speaker 1: know Label Warren said last night, you know, we need 457 00:27:42,119 --> 00:27:45,160 Speaker 1: to and Katie Porter, we need to roll back the word. 458 00:27:45,200 --> 00:27:47,520 Speaker 1: We need to cancel the law that roll back Dodd Frank, 459 00:27:47,560 --> 00:27:50,440 Speaker 1: and we need to actually reopen the debates around Dodd 460 00:27:50,480 --> 00:27:53,480 Speaker 1: Frank and put back in the stuff that we were 461 00:27:53,600 --> 00:27:59,040 Speaker 1: arguing for that we didn't get into the final legislation. Yeah, 462 00:27:59,200 --> 00:28:02,080 Speaker 1: like the prefund also, Yeah, yeah, good luck with that. 463 00:28:02,440 --> 00:28:04,760 Speaker 1: I'm just saying, yeah, I'm just saying good luck with that. 464 00:28:04,880 --> 00:28:06,760 Speaker 1: And I won't hold my breath because I'd rather not 465 00:28:06,800 --> 00:28:09,840 Speaker 1: pass out and hit my head on my computer Jennifer Tobb. 466 00:28:10,080 --> 00:28:14,040 Speaker 1: We will have you back again as this continues to unfold, 467 00:28:14,040 --> 00:28:18,479 Speaker 1: but to have more conversations about immense greed and the 468 00:28:18,520 --> 00:28:21,320 Speaker 1: American oligarch that we don't talk about. We're all about 469 00:28:21,400 --> 00:28:26,760 Speaker 1: seizing yachts and private planes and multiple homes of Russian oligarchs, 470 00:28:27,040 --> 00:28:31,560 Speaker 1: but we speak nothing on the technocrats and the American 471 00:28:31,600 --> 00:28:36,199 Speaker 1: oligarchs that run everything in our lives. So as always, 472 00:28:36,240 --> 00:28:39,200 Speaker 1: dear friend, we appreciate you, so good to see you. 473 00:28:44,480 --> 00:28:47,240 Speaker 1: That is it for me today. Hear friends on woke 474 00:28:47,280 --> 00:28:51,360 Speaker 1: app as always, power to the people and to all 475 00:28:51,760 --> 00:28:55,640 Speaker 1: the people. Power, get woke and stay woke as fuck.