This story was originally published by the WND News Center.
America’s banking industry remained in turmoil on Monday after two large banking corporations were shut down late last week and over the weekend – a proximate result of the 2020 presidential election.
The Gateway Pundit was reporting that trading at more than 30 banks was halted, at least temporarily, because of the explosive details of the failures.
That report noted Market Watch was warning, “To gauge the panic-like activity of bank investors in the wake of the recent failures of SVB Financial Group’s SIVB, Silicon Valley Bank and Signature Bank SBNY, -22.87%, investors can check out the Nasdaq’s ‘Current Trading Halts’ page. Multiple banks have had their stock halted for volatility, some more than once, since the opening bell. Among some of those that have already been halted at least twice, shares of Western Alliance Bancorp WAL, -82.55% plummeted 78.2%, Regions Financial Corp. RF, -7.54% sank 15.6%, First Republic Bank FRC, -77.82% plunged 65.5%, Comerica Inc. CMA, -38.51% tumbled 39.4% and PacWest Bancorp. PACW, -53.44% took a 47.7% dive. The selloffs come as the S&P 500 SPX, -0.11% inched up 0.1%, erasing an earlier drop of as much as 1.4%.”
It’s likely because Barack Obama, back in the day when he was imposing his ideological agenda on America, stated, “Elections have consequences.”
Joe Biden’s election in 2020 allowed his all-out attack on America’s energy independence, its ability to generate revenue selling oil and natural gas, and other factors like a wide-open southern border that allowed millions of illegal aliens to enter. Biden also has engineered the spending of trillions of dollars – pushing the nation’s debt to never-before-seen levels.
The result was inflation – which maxed out at 9.1% last summer and still remains extraordinarily high.
That triggered the Federal Reserve’s many repeated decisions to raise interest rates hugely – in its attempts to slow down that inflation.
That resulted in the shutdowns of a couple of banks whose officials had left their assets imbalanced – heavily into mortgages as those interest rates were exploding.
The New York Post cited the 70% plunge in shares of First Republican Bank in pre-market Monday trading before those sales were halted.
That happened just as the feds assumed control of Silicon Valley Bank and Signature Bank.
The Post said, “Trading was halted despite President Biden addressing the burgeoning crisis.” He said the nation’s banking system is “safe” and immediately called for more regulations.
“Americans can have confidence that the banking system is safe. Your deposits will be there when you need them,” he said.
Among other troubled organizations were Western Alliance, PacWest Bancorp, Charles Schwab, and more.
Even so, the Dow Jones Industrial Averages rose more than 200 points mid-day.
A third bank, Signature Bank, was closed by the state of New York just days earlier, but it was for unrelated reasons.
According to Yahoo Finance, the stock price rise followed “aggressive” work to prevent further bank failures.
The report said,” U.S. stocks got smoked on Friday, rounding out their worst week so far this year. Federal regulators closed tech-focused lender Silicon Valley Bank in the biggest U.S. bank failure since the financial crisis in 2008.”
Biden’s messaging on Monday claimed, “no losses will be borne by taxpayers.” But he also said customers all would be protected.
In fact, Treasury Secretary Janet Yellen, Fed Chair Jerome Powell, and FDIC Chairman Martin J. Gruenberg announced that depositors of the failed Silicon Valley Bank would be able to access all their money starting Monday.
The report also predicted, “Economic releases will dominate the conversation this week as Wall Street pays attention to two data prints as the next Federal Reserve’s meeting rapidly approaches. At the same time, investors will be glued to the latest headlines over the collapse of SVB Financial Group and the implications for the banking sector.”
One of the questions to be answered is whether the Fed will continue raising interest rates to extraordinary heights.