Banking Crisis Worsens: Swiss Bank is First “Too Big to Fail” Bank to be Bailed Out as Saudis Withdraw Support

Switzerland's second largest bank, Credit Suisse, which has been experiencing bank runs and plummeting stock valuations since the end of 2022, became the first SIFI (systemically important financial institution), or "too big to fail" bank, to crash today forcing regulators to step in and ensure a bailout. The Saudis almost single-handedly crashed the U.S. Stock Market (and stock markets around the world) this morning when they announced that they were not going to put any more money into the failed Swiss bank. While the U.S. Stock Market did end lower today, it most assuredly would have been a blood bath if Swiss Regulators had not stepped in to ensure the world that it was going to bail out their troubled bank. This was after European markets had closed, however, and European banks' stock values lost 7% at end of trading in Europe today. Since a simple statement made by Saudi National Bank Chairman Ammar Al Khudairy almost crashed the entire world's financial system today, what does that tell you about the frailty of the current banking system?

3rd FDIC-Insured Bank Fails in 5 Days but Feds Avoid Black Monday by Bailing Out Depositors

Sunday morning U.S. Treasury Secretary Janet Yellen appeared on Sunday talk shows to announce that the Fed was NOT bailing out Silicon Valley Bank or any other banks, as they did in 2008. However, faced with the possibility of bank runs and a Black Monday collapse of the stock market, the Feds apparently reversed course (or maybe this was their intention all along?) and did just exactly what they said they would not do, and put into place a program to bail out depositors who were not covered by the FDIC's limit of $250k per account. The FDIC also closed another bank, Signature Bank in New York, but assured depositors that they could get all of their money out of their accounts on Monday. And it worked, as futures trading that began Sunday night jumped up, instead of crashing, and Wall Street breathed a deep sigh of relief. We now have had 3 FDIC-insured banks fail in 5 days, but it doesn't matter if your account was insured or not, as the Fed is just going to give everyone their money back. So the financial Armageddon has been postponed, again. The Big Tech billionaires, like Mark Cuban, whined and complained over the weekend that the Fed was not stepping in to save them, so the Fed obliged. The banking system was saved, for now, so the $billions can continue to pour into Wall Street to fund the military industrial complex to continue their wars, as well as $billions flowing into Big Pharma to keep funding never-ending emergency use authorizations for new drugs and vaccines. This won't fix the systemic problem with our financial system, but at least depositors should be able to get access to their money Monday, even though that money will be worth far less than it was on Friday. Get ready for the mass consolidation of the banking industry now and the rollouts of Digital IDs and eventually Central Bank Digital Currencies (CBDCs).