So. The US economy is just fine. The post-recession 2010 Dodd-Frank
legislation has cured all. Banks have lots of cash. Congress is your
friend and that certain-to-pass Tax Cut and Jobs bill will finally allow
you, your family and America to … MAGA [Make America Great Again].
“I’m sorry, Sir. We are unable to cash this check,” were the ominous
words delivered to me by a fresh-faced, none-too-friendly, Wells Fargo
Bank manager. He had just kept me waiting ten minutes while in
consultation about my requested transaction. Returning to his cubicle he
sat down quickly, now looking at me intently through narrowed eyes.
Three feet away, between us and in front of him, were three forms of
my personal identification face up. However, he gazed down glowering at
two personal checks also laying before him, written to me by a client
and drawn on his bank. Not being a “Wells” customer I had expected a
shake-down, hence the multiple forms of ID.
These two checks totaled a seemingly paltry sum of almost
US$8,000.00. Not expecting this much difficulty I insisted on a reason,
to which he now looked up from considering the two checks and replied,
“I’m sorry, but the bank does not have sufficient funds on-hand to cash
Naturally, like the majority of incorrectly indoctrinated US bank
depositors I assumed that, as is traditional with banks, this one would
have lots and lots of cash.
Unapologetically he informed me that he was “sorry” but he could only
cash one of the checks at this time. Both checks were for about the
same amount. I inquired if this was a new bank policy and was told that
the bank simply did not have enough cash on hand, and, “no”, I could not
come back at the end of the day after the bank had received the day’s
cash deposits. However, if I went to a larger Wells branch they might be
able to handle both checks.
This rather unique news seemed worthy of delving into further, so I
declined his opening offer and left with my two onerous withdrawals.
Being away from home, I decided to wait and stop by my home town’s main
Wells Fargo branch office. For anyone following the factual and very
dire condition of the world’s economy and its bank’s magnificent set of
past, pending, future – and unpunished – financial crimes, my sojourn
into the realm of Kafka would become a very cautionary tale.
Oh, those evil banks. The shadowy corporatist denizens of New York,
London, and Brussels, all guilty of a staggering set of ever-expanding
frauds couched in the beneficent language of greedy short-term
materialistic gain. Financial “crimes of the decade,” like the Savings
and Loan meltdown, the Enron Collapse, and the Great Recession are
nowadays reported almost monthly. With metered US justice amounting only
to a monetary fine for the offending criminal bank – usually a small
fraction of the money it previously stole, hypothecated, leveraged or
manipulated – and with criminal prosecution no longer a possibility,
these criminals continue to shovel trillions – not billions – into
off-shore, non-tax paying accounts of the already uber-rich. There is
Just in time for Christmas, Americans received the “Tax Cut and Jobs
Bill 2017” that, of course, contains not one word about jobs, but sounds
so good to the ignorant who are still transfixed on the false mantra of
LIBOR, FOREX, COMEX, which used high-speed program securities trading
combined with insider manipulation, were the first serious examples of
recent bank frauds. Since the Great Recession magically became the Great
Recovery, Wachovia and HSBC banks plead guilty to laundering money for
Mexican drug cartels dictators, and terrorists. Wells Fargo and Bank of
America were also guilty of defrauding tens of thousands of homeowners
of the properties during the “robo-signing” scandal; that was a scandal … until Wells and BA paid the mordida
and all returned to business as usual. Example: In July 2017 it was
revealed that more than 800,000 customers who had taken out car loans
with Wells Fargo were charged for auto insurance they did not need.
Barely a month later, Wells was forced to disclose that the number of
bogus accounts that had been created was actually 3.5 million, a nearly
70 percent increase over the bank’s initial estimate. Why not? When the
predictable result will be a small percentage fine … and keep the rest.
Now that’s MAGA!
If the individual retail – Mom and Pop – investor actually had a
choice of where to put their cash money, then no one with better than a
fifth-grade education would put a penny into the major stock markets.
However, the goal of the many banking manipulations have had one goal:
eliminate financial investment choices to one – stocks.
One choice, gold and silver, the previous historical champion
alternative in preserving one’s wealth, was deliberately eliminated from
short-term, private investment. The banks, issued and sold massive
amounts of worthless certificate gold and derivative gold (not bullion),
and the same in silver, at a current ratio of 272 paper instruments to
one measly ounce of real physical gold. All this has been leveraged
against real precious metals, and next used to influence the price of
gold – down – by selling huge tranches of these ostensibly worthless
gold contracts (1 contract=100 paper ounces) within seconds when the
spot price of gold begins to rise. The banks have done this so often
that gold has not risen to levels it would likely reach without this
manipulation. This has driven massive liquidity that would have gone to
precious metals towards stocks. This is likely evidenced by the advent
of the meteoric rise in the price of Bitcoin, one that – like gold –
escapes the bank’s control and a super-inflated stock market.
Similarly, thanks to the economic trickery that has been three rounds
of Quantitative Easing, the other two conventional options – the bond
market and personal bank savings accounts – have been manipulated to
also produce a very low rate of return, driving these cash funds to
stocks. It is this entire package of criminality – providing no other
place for liquidity to go – that has performed as the plot to push a
surging world stock market to obscene levels that have no basis in
factually based accounting or economic methods … or history.
Banks Are Ready for the Next Crash – You’re Not!
The banks know the next crash is coming. Like 2007, they have set in
motion the next great(est) recession. Predator banks know that most
people, thanks to the aforementioned financial control, media omission
and an inferior education system, are “stupid,” especially
regarding the nuances of financial fraud. As the majority of Americans
and Europeans live in the illusion that their financial institutions
will protect their savings, they miss their bank’s greedy preparations
for the next stock market crash slithering through the halls of their
Parliament or Congress. This already completed legislation states in
plain English, and the language of endemic corruption, that your bank
intends to steal your money directly from your savings account. And …
your government will let them do this to you.
30,000 pages make up the Dodd-Frank post-recession legislation,
authored by the banks in the aftermath of the Great Recession. The
Dodd-Frank legislation was touted as eliminating the massive bail-outs
the US gave virtually every ill-defined too-big-to-fail worldwide bank
and US corporation in 2008-9. In reality, Dodd-Frank was as much a fraud
against Americans as LIBOR or COMEX manipulation, et al.
Title II of the media-acclaimed 2010 Dodd-Frank Wall Street Reform
and Consumer Protection Act provides the Federal Deposit Insurance
Corporation (FDIC) with new powers and methods to again guarantee –
first and foremost – the massively leveraged derivatives trade once this
massive leverage plummets as it did with AIG in 2007-09. However, that
collapse was singular. The next will include all banking sectors.
The banks’ paid-for politicians made sure a post-crash Congress did
not regulate derivatives via Dodd-Frank, and thereby encouraged a
further increase in this financial casino betting, despite it being the
root cause of the original problem. Thanks to Dodd-Frank and its
predecessor, the 2005 Bankruptcy Act, Congress made sure these new
fraudulent bets on stock market manipulation would surely be paid. But,
not to worry; there would be no more “Bail-Outs.” Next time, these banks would use their depositors’ savings, including yours. Meet: the “Bail-In.”
All Americans recall the massive “Bail-Outs” of 2007-9 and
how their corporately controlled Federal Reserve Bank and an equally
controlled US Congress threw several trillions of US taxpayer dollars at
US banks, dozens of foreign banks, and any corporation with enough
political pull to be defined as “Too Big To Fail” (TBTF). In the
aftermath a year later, the banks understood that Americans and European
citizens had lost enthusiasm for any future government Bail-Out,
most preferring instead that any institution suffering self-inflicted
financial duress should enjoy the fruits of their crimes next time, via
the reality of formal bankruptcy proceedings.
The will or financial safety of the public is, of course, no concern
to criminal corporations, and so easily circumvented via Congress and
the president. So, the banksters have redefined their criminality using
two newly defined methods, both re-branded to be far more palatable to
Currently,“Too Big to Fail,” has a very fraudulent and elitist connotation just like, “Bail-Out.”
To millions across the world who have lost their homes, pension funds,
retirement plans, and dreams, this decade-old moniker for financial
oppression and fraud has now been conveniently re-branded. The
bailed-out TBTF banks now have a far more magnificent definition: TBTFs
are now, “Globally Active, Systemically Important, Financial Institutions” (G-SIFI).
This sounds so much better.
But, “Bail-Out”? No… No. Would you not prefer a “Bail-In”? Not if you know the details.“Bail-Outs,” may have also lost their flavor but in the new world of the G-SIFI, the next one is actually just a “Bail-In,” away.
Yes, Bail-Ins, the new “systemically” correct term for
publicly guaranteed bank fraud are already named as such in new national
policies and laws, appearing in multiple countries. These finance laws,
such as Dodd-Frank and its pending UK and European-Union version, make
upcoming Bail-Ins legal. These Bail-Ins allow failing G-SIFI banks to
legally convert the funds of “unsecured creditors” (that’s you) into bank capital (that’s them). This includes include “secured” creditors, like state and local government funds.
With this in mind, I entered the main branch of Wells Fargo. The two
checks in hand. On the way in I was greeted warmly, one after the other,
by three more fresh-faced and eager protégés, all smartly uniformed to
match the Wells décor, and who proffered, “Good morning, Sir!”
again, and again…and again. Certainly, these little fish were not in
possession of authority enough to cash my mammoth checks, so I asked for
bigger game, the Branch Manager.
Thus, I explained my plight to a very lovely lass who predicted she, “would be glad to help me.”
“Cheryl,” patiently explained that I had come to the right
place and she would be glad to cash both checks. Regarding my previous
polite banking experience, she admitted that it was indeed bank policy
to have limits on the availability of cash for withdrawals and that
different branches had different limits. This was the main branch so my
request here was meritorious. Further, she admitted that whatever daily
cash coming into the branches in the form of deposits was not available
for withdrawal, but was sent from the main branch for daily accounting
at a central point common to all area Wells bank branches. Only a
prescribed amount of cash was provided with each bank for daily customer
“A couple of times your current request,” was her cautious response
to my question about her branch’s limits on check cashing. Not to be
put-off, I asked about a hypothetical US$25,000 check. She admitted this
would be beyond her branches authority. “But,” she smiled, “Today, you’ve come to the right place.”
The financial law firm Davis Polk estimates the final length of
Dodd-Frank, the single longest bill ever passed by the US government, is
over 30,000 pages. Before passage, the six largest banks in the US
spent $29.4 million lobbying Congress in 2010 and flooded Capitol Hill
with about 3,000 lobbyists prior to Obama predictably signing its final
unread version. No US congressman or senator had read it. But, the
banks’ congressional minions were told to vote for it. And dutifully
The major cause of the upcoming financial meltdown, as with the
pre-2008 conditions, is globally systemic gambling against national
economies; called derivatives. Derivatives are sold as a kind of betting
insurance for managing fraudulent banking profits and risk. So, why fix
systemic banking fraud when the final result allowed these same banks
to make even more money in the aftermath of the national and personal
financial destruction they originated in the first recession?
Instead, thanks to Dodd-Frank, derivatives suddenly have “super-priority”
status in any bankruptcy. The Bank for International Settlements quoted
global OTC derivatives at $632 trillion as of December 2012. Naked Capitalism
states that $230 trillion in worthless derivatives are on the books of
US banks alone. Applied to Dodd-Frank this means that all these bad bank
bets on derivatives will be paid off first … before you may have your savings cash. If there’s actually any cash left once you get to the teller’s counter.
Normally in a capital liquidation or bankruptcy proceeding, secured
creditors such as a banks personal depositors are paid off first because
these are hard assets, not investments, and thus normally have a
mandated priority. Under these new “Bail-In” Dodd-Frank
mandates, your government has re-prioritized your bank’s exposure and
your cash deposit. Derivatives and other similar banking high-risk
ventures are now more highly protected than bank depositors’ savings. In
the 2013 example of Cyprus, Germany and the ECB also made depositors
inferior to other bank holdings leaving depositors with, after many
months, a small fraction of their deposits.
And then came Greece.
Selling the lie while using the language of Dodd-Frank, we are told
by media whores that banks will not be given taxpayer bailouts next
time. True. The preamble to the Dodd-Frank Act claims, “to protect the
American taxpayer by ending bailouts.” But how, then, to Bail-In the
G-SIFIs without another taxpayer Bail-Out? No problem.
Enter the FDIC and another new banking term, “cross-border bank resolution.” As
the sole US agency required to pay back depositors who lose savings up
to $250,000, FDIC is armed with a paltry US$25 billion war chest to pay
depositors. Under Dodd-Frank, the FDIC will be the mechanism to replace
deposits lost or squandered by bank fraud. The public, however, has an
estimated total US cash deposits of US$7.36 trillion so, once the banks
steal your savings, FDIC will be just a little bit short of funds. How
to fix this mathematical shortfall? With, of course, more of your money
via emergency taxes or a massive new round of Quantitative Easing(QE).
Either way, by the time this happens your money is long gone. And it
Say, “Goodbye” to your Savings – Two Greedy Methods
“It’s [FDIC] already indicated that they will confiscate [savings] funds…”. – US congressman Ron Paul.
On December 10, 2012, a joint strategy paper was drafted by the Bank
of England (BOE) in conjunction with the Federal Deposit Insurance
Corporation (FDIC) titled, “Resolving Globally Active, Systemically Important, Financial Institutions.” Here the plot to steal depositor savings is clearly laid out.
The report’s “Executive Summary” states,
… the authorities in the United States (US) and the
United Kingdom (UK) have been working together to develop resolution
strategies…These strategies have been designed to enable [financial
institutions] to be resolved without threatening financial stability and
without putting public funds at risk.
Sounds good until you read the fine print, i.e., whose risk are they actually protecting.
While claiming to protect taxpayers, Title II of Dodd-Frank gives the
FDIC an enforcement arm, the Orderly Liquidation Authority (OLA) which
is similar to its British counterpart the Prudent Regulation Authority
(PRA). Both now have the authority to punish the personal depositors of
failing banking institutions by arbitrarily making their savings
deposits subordinate – actually tertiary – to bank claims for the
replacement value their derivatives. Before Dodd-Frank savings deposits
were legally senior and primary to these same claims in a routine
With the US banks holding only $7 trillion in personal cash savings
deposits compared to $230 trillion is US derivative obligations, FDIC’s
$25 billion will not be enough. The creators of Dodd-Frank knew this
before it was signed. As John Butler points out in an April 4, 2012,
article in Financial Sense,
Do you see the sleight-of-hand at work here? Under the
guise of protecting taxpayers, depositors… are to be arbitrary,
subordinated… when in fact they are legally senior to those
claims…Remember, its stated purpose [Dodd-Frank] is to solve the
problem… namely the existence of insolvent TBTF institutions that were
“highly leveraged with numerous and dispersed financial operations,
extensive off-balance-sheet activities, and opaque financial
Oh, but bank depositors can rest easy in the knowledge that replacing
their savings will not come out of their pockets via another bank
Bail-Out. Thanks to Dodd-Frank, the first line of defense will allow
Congress to instead replace personal savings with a government paid-for
$7 trillion bail-in to FDIC to “replace” these savings.
But, that’s the good choice.
Worse, Dodd-Frank gives new powers to FDIC and its OLA that allow an
even more powerful and draconian resolution: any deposited funds in a
bank, from $1 to $250,000 (the FDIC limit), and everything above, can
instead be converted to bank stock! FDIC has provisions so this can be
done, via OLA, quite literally overnight.
An FDIC report released in 2012 ago reads:
An efficient path for returning the sound operations of
the G-SIFI to the private sector would be provided by exchanging or
converting a sufficient amount of the unsecured debt from the original
creditors of the failed company [meaning the depositor’s cash] into
equity [or stock].
Additionally, per April 24, 2012, IMF report, conversion of bank debt
to stock is an essential element of Bail-Ins included in Dodd-Frank.
The contribution of new capital will come from debt
conversion and/or issuance of new equity, with an elimination or
significant dilution of the pre-bail in shareholders. …Some measures
might be necessary to reduce the risk of a ‘death spiral’ in share
For affected depositors to retrieve the value of what was formerly
the depositor’s account balance, the stock must next be sold. When
Lehman Brothers failed, unsecured creditors (depositors are now
unsecured creditors) got eight cents on the dollar.
This type of conversion of deposits into equity already had another
test-run during the bankruptcy reorganization of Bankia and four other
Spanish banks in 2013. The conditions of a July 2012 Memorandum of
Understanding resulted in over 1 million small depositors becoming
stockholders in Bankia when they were sold without their permission – “preferences” (preferred
stock) in exchange for their missing deposits. Following the
conversion, the preferences were converted into common stock originally
valued at EU 2.0 per share, then further devalued to EU 0.1 after the
March restructuring of Bankia.
Canada has also stated they are planning a similar “Bail-In” program.
The Canadian government released a document titled the Economic Action
Plan 2013 which says, “the Government proposes to implement a ‘Bail-In’
regime for systemically important banks.”
However, don’t be getting cute by hiding your cash, precious metals,
or passport in a bank safe deposit box. There are no longer safe either.
Dodd-Frank took care of that, too.
Under Dodd-Frank the FDIC, using the auspices of Dept. of Homeland
Security (DHS) can legally, without a warrant, enter the bank vault,
have the manager secretly open any and/or all safe deposit boxes and
inventory, or seize the contents. Further, if the manager is honest
enough to inform the depositor of the illegal incursion, he is subject
to criminal charges and termination from bank employ. Independent
reports reveal that all of America’s safe deposit boxes have already
been invaded and inventoried for future confiscation.
This already happened in Greece. Depositors who removed their
jewelery or precious metals were met at the bank’s door by security, a
metal detector and confiscation.
The power of the now-remaining G-SIFI banks and FDIC was further
evident when, cash finally in hand, I headed to my bank, JP Morgan
Chase, right next door to Wells Fargo. The manager confirmed that the
cash withdrawal policy at Chase was in keeping with that at Wells; very
little cash available on demand. I posed a slight untruth and inquired
as to what I should do about my upcoming need for $50,000 in hard cash.
No, her bank would not do that on demand, but arrangements could be made
to have the cash transferred to her bank. That would only take “about two days.” Of course, I would need to fill out a few forms.
What a Difference a Congress Makes!
With the American and UK public again on the hook – by law – for the
anticipated loss of the banks, a distressed depositor might think the
plot to defraud them now complete. Au Contraire.
In its rush to transfer further wealth upwards to off-shore bank
accounts, US president Trump and his recently re-aligned Republican
bootlickers have left no stone unturned. First, Trump issued a
memorandum that sets in motion his plan to scale back the provisions of
Dodd-Frank and repeal the Fiduciary Rule.
It should be noted that the only voice of economic reason at the
White House, Former Fed Chairman, Paul Volker, divorced himself from
this growing scandal of basic mathematics very publicly. As head of
Obama’s recession-inspired, President’s Economic Recovery Advisory
Board, Volker ran into the headwinds of fiscal insanity for too long,
resigning in January of 2011 in disgust. His departure thus coincided
with the renewal of the litany of criminal financial manipulation
already discussed here. And now…
The House approved legislation on Feb. 2, 2017, to erase a number of
core financial regulations put in place by the 2010 Dodd-Frank Act, as
Republicans moved a step closer to delivering on their promises to
eliminate rules that they claim have strangled small businesses and
stagnated the economy. Said Trump,
I have so many people, friends of mine, with nice
businesses, they can’t borrow money, because the banks just won’t let
them borrow because of the rules and regulations and Dodd-Frank.
Never mind, of course, that these poor banks are holding derivative
exposure thirty-five times the total cash deposits of US savers … nor
that their ill-gotten riches – such as the UBS, Wells Fargo, Bank of
America, RBS multi-billion dollar frauds – were taken off-calendar in
Federal court for approximately 15% of the total crime. The banks kept
And they want more?!
“We expect to be cutting a lot out of Dodd-Frank,” Trump
said further defining the mantra of MAGA. This will likely see the
deterioration of the newly created Financial Stability Oversight Council
(FSOC) and the Consumer Financial Protection Bureau (CFPB) since these
agencies curb further excessive risk-taking and the existence of
too-big-to-fail institutions on Wall Street.
Well, depositors, your extreme caution is required. The wording of
these new, bank-inspired sets of legislation is silently waiting to be
used by many nations to prioritize banks before their citizens. When the
time comes, the race to the bank will be a short-lived event indeed.
With this in mind, I stepped into the bright sunshine outside the
walls of JP Morgan/Chase bank, all but $100.00 of my day’s take stuffed
deep – and securely – in my pocket. Its final outcome no one’s business
but my own.
However, for almost everyone else? Well … when YOUR bank fails, don’t walk – run! YOU do not want to be second in line.
About the Author: Brett Redmayne-Titley has
published over 150 in-depth articles over the past seven years for news
agencies worldwide. Many have been translated. On-scene reporting from
important current events has been an emphasis that has led to multi-part
exposes on such topics as the Trans Pacific Partnership negotiations,
NATO summit, KXL Pipeline, Porter Ranch Methane blow-out and many more.
He can be reached at: live-on-scene((at)) gmx.com.