U.S. Treasury Secretary Janet Yellen, 76, made it through a congressional hearing this week.
However, according to Breitbart, during the hearing, Yellen admitted to some particularly nasty, one-sided business that Senate Democrats seem to be up to regarding the recent historic bank failures.
Yellen was grilled by Republican lawmakers over how the Fed treats the situation, specifically with regard to how regional banks are looked at versus the handful of mega-banks that Democrats love to protect.
Her testimony probably surprised the Biden administration and her Democratic allies in the Senate, as her revelation probably wasn’t supposed to be so public. Breitbart even called it “terrifying.”
What did she say?
It was thanks to a question from Oklahoma Republican Sen. James Lankford that Yellen said out loud what many suspected the entire time.
The question revolved around how regional, smaller community banks — many of which are run by small business owners — are treated compared to the gazillion-dollar corporate banks that Democrats gravitate toward.
“Will the deposits in every community bank in Oklahoma, regardless of their size, be fully insured now? Are they fully covered, every bank, every community bank in Oklahoma, regardless of the size of the deposit? Will they get the same treatment that SVBP [Silicon Valley Bank] just got or Signature Bank just got?” Lankford asked.
Her answer should frighten us all.
“A bank only gets that treatment if a majority of the FDIC board, a super majority of the Fed board and I, in consultation with the president, determine that the failure to protect uninsured depositors, would create systemic risk and significant economic and financial consequences,” Yellen responded.
Breitbart’s John Nolte explained the significance of Yellen’s answer:
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 fires back
The Oklahoma Republican is no dummy, and he immediately interpreted Yellen’s answer as a massive red flag, to say the least.
“So what is your plan to keep large depositors from moving their funds out of community banks into the big banks?” Lankford asked.
He added: “We have seen the mergers of banks over the past decade, and I’m concerned you’re about to accelerate that by encouraging anyone who has a large deposit in a community bank to say, ‘We’re not gonna make you whole.'”
“Look, I mean, that’s certainly not something that we’re encouraging,” Yellen responded. Ha!