The Blubber

Per NYT

Senator Elizabeth Warren explains the reason why many people are skeptical of the system. She pointed out that the system would prioritize billion-dollar crypto firms instead of helping the remaining millions of Americans that still struggled with student loans.

Warren: "It’s no wonder the American people are skeptical of a system that holds millions of struggling student loan borrowers in limbo but steps in overnight to ensure that billion-dollar crypto firms won’t lose a dime in deposits."

In an opinionated piece in the NYT, Warren gave her analogy of what happened, starting the piece by saying that people shouldn't be confused as to why the banks failed. The Senator directly said that this resulted from financial rules being weakened.

The Senator then talked about the Dodd-Frank Act that was imposed after the 2008 financial crisis. It was noted that Wall Street CEOs were against this law and spent millions to try to weaken it and that Greg Becker, the chief executive officer of Silicon Valley Bank, lobbied Congress to weaken the law.

Warren: "In 2018, the big banks won. With support from both parties, President Donald Trump signed a law to roll back critical parts of Dodd-Frank. Regulators, including the Federal Reserve chair Jerome Powell, then made a bad situation worse, ‌‌letting financial institutions load up on risk."

The Senator then shared that she was fighting against the changes and gave a warning in 2018 of what could happen due to the weakening of the law.

Warren: “Washington is about to make it easier for the banks to run up risk, make it easier to put our constituents at risk, make it easier to put American families in danger"

Recently, Treasury Secretary Janet Yellen said that they aren't "considering insuring all uninsured bank deposits." This came a day after she called the US financial system the "safest and most liquid in the world."

Elizabeth Warren is considering trying to lift the FDIC limit from $250,000 to what was described as the "right number."

See flow at unusualwhales.com/flow.

Other News:

• Yellen: We are not considering insuring all uninsured bank deposits
• Elizabeth Warren is considering attempting to lift the FDIC limit from $250,000 to a "right number," possibly millions

Resources:

The New York Times