Bank on the Run. No. That is not a Song.

I admit. The temptation was there though. As was an inclination for me to act boldly, add melodious lyrics and a catchy chorus. Indeed, ‘Band on the Run’ – by Paul McCartney and his band Wings – started to play on my mind. Why not? That tune from the 70’s was a favorite; the hit song by the former Beatle had fans from the world over. Including me. 

Who can forget the memorable lines…? 

“The jailor man And Sailor Man Were searching everyone. For the Band on the run.” 

However, those same lyrics do not play well today; nor do they offer universal solace in these tumultuous times we all find ourselves in now. 

Please allow me to expound … 

The phenomenon plaguing banking circles

If you have been paying attention to the news, – especially headlines involving finance – you would be familiar with a phenomenon that is now plaguing banking circles. The United States is at the epicenter. Moreover, regional banks – those centered in Silicon Valley – in the Western states are experiencing much consternation: Depositors in masse are withdrawing their savings. Not just some of their ‘rainy day’ funds, but customers are retiring all of their active accounts. By some modest estimates, more than 20 banks are affected. Big Name banks are involved: Wells Fargo is just one. Republic National is another. 

Where are these funds going? 

The smart money consensus is that fleeing customers are flocking to ‘money markets’. There, at least, they can invest in a CD – Certificate of Deposit – that pays a half-way and palatable decent interest rate. One that when compared vis-a-vis with a Savings and Loans account offers little doubt as to the obvious: the latter, being scoundrels, could not care less about the ‘little people’ depositors. They get what we give them. No more. Take it… Alternatively, leave. 

Well, the little guy depositors left. In addition, they left in droves; to the tune of $billions withdrawn in a fortnight. 

Mass exodus

What is behind this mass exodus by customers? 

Some experts say that ultimately the Federal Reserve System is. In the recent spate of rising interest rates, banks in general, did not reciprocate on their Liability side of their Balance Sheet: offer higher yields on customer deposits. Those few banks that did pay attention to their customer base, offered only paltry increases. Maybe, 2 percent per annum, was the best that a depositor could expect. 

Undercapitalisation

Other experts – whom I am in agreement with – proffer a more plausible explanation. Those same Western Regional banks are undercapitalized. That only stands to reason when you consider that the Asset side was awash in longer term – 10 year – U.S. Treasury Bills that were overvalued. If the same banks were to abide by ‘mark to market’ accounting principles, management would be obligated to provide massive loan losses as well as write down the corresponding T Bill investments. 

Still others claim that Congress’ repeal of the Glass Seagal act was the primer, where under existing law, ‘banking’ was to remain separate from investing activities. Congress in doing so now allowed banks to commingle assets. In all fairness, those should forever remain apart under separate reporting entities. 

If you have read so far, then you are probably astute enough to realize the ‘who’ that is responsible for this emerging catastrophe. That is right. You are correct if you suspected The Fed. As always though, the Board members accept responsibility. Yet, in making that public discourse, that same Board of Governors denies accountability. Why should they? The Fed is only accountable to its shareholders. None of which are the ‘little people’ depositors, much less, the U.S. Congress. 

Moreover, the defenders – many of which are Republicans a.k.a. RINO’s -- of the Republic’s governance system of ‘checks and balances’ are quick to point out that the Federal Reserve System safeguards the currency supply side of monetary policy. Whhhhaaaaat? That is a bald-faced lie. It is smoke and mirrors. Only the well-heeled rich depositors – including member banks – enjoy that luxury. The common hard working citizens have no such guarantee. The Federal Deposit Insurance Corporation rules attest to that very hard cruel fact. Customers are imposed a $100 thousand upper limit on accounts. 

By now, you have guessed the gist of what really is happening behind the phenomenon of Banks on the Run. 

Customers everywhere increasingly are being awakened. They remain focused. Because they have to in order to survive. A coming tumult centers on a single entity. The globalists’ Banking Matrix is a system so corrupt that it is beyond reform. Now it has sunken to even new lows. The stink of which is so bad now, that the foul smell is palpable everywhere. 

Knowing that evil – in the form of greed – is afoot by the-powers-that-be, it is no small wonder that families huddle round their kitchen tables; discuss appropriate options as to what they must do.

The answer is simple: Pull the plug. Let the banks sink in their own mire. This is what so many concerned citizens already did. There are more to follow that lead. Many more…

As the song goes... 

When the going gets rough. 

 

The tough get going; or, they leave.

 

That is the banks’ conundrum. It they are not careful they may just find themselves short of depositors; out of money.

 

Bank on the Run. No. That is not a Song.

 

Montresor