FDIC: JP Morgan Bankruptcy Plan Is Insufficient, Could Impact “The Financial Stability Of The U.S.”

• Report rights infringement
• published: 16 Apr 2016
• views: 1271

The Federal Deposit Insurance Corporation, more commonly known as the FDIC, in an ironic turn of events recently sent JP Morgan Chase Bank a 19 page warning letter, telling them that their bank is unstable and they need to adjust their plan for bankruptcy. After the crash of 2008, the Dodd-Frank Law was created, which requires all financial institutes that could have a systemic effect on the economy as a whole to have a backup plan or living will in place, allowing for an orderly plan for resolving themselves in case they go bankrupt. Recently the FDIC realized that currently J P Morgan Chase Bank's bankruptcy plan does not meet the requirements of law, and in fact specifically stated not that JP Morgan could pose a threat to its shareholders or even Wall Street but instead stated that it could potentially pose a threat to “the financial stability of the United States” as a whole. I say ironic, as recently it seems that a lot of these type of stories are hitting the media, from the Panama Paper leak, to Deutsche Bank admitting to rigging the global gold and silver markets, to this new story about JP Morgan and its potential risk to go bankrupt and have a massive negative effect on the economy of the United States as a whole. Are all these recent banking related stories just chance occurrences, or is the media just getting better at doing its job, or is there something more to all of this? Well I do find it interesting these 3 financial entities seem to connect in the background in a way that most people likely aren't seeing. First you have JP Morgan which just so happens to be one of the few U.S. based banks that was recently involved in purchasing a huge amount of toxic derivatives from none other than Deutsche Bank. By doing this, JP Morgan took possession of a large amount of toxic assets that could easily cause them to spin into bankruptcy in a worst case scenario. Is this massive derivative transfer what triggered the FDIC to investigate JP Morgan’s bankruptcy plan in the first place, due to the large increase in bankruptcy risk from the newly acquired "assets"? Well either way, I don't necessarily think JP Morgan is to worried, as prior to this massive derivative transfer taking place, laws were passed which force the FDIC in the United States to not only provide insurance for derivatives, but they get top priority treatment. This means in a worst case scenario, the FDIC would be forced to payout their insurance money towards toxic derivatives before being able to give a single red cent towards the actual depositors within the banks themselves. And the bad news doesn't stop there, as not only would actual depositors not get any FDIC insurance money to cover their loss in deposits, but the FDIC Deposit Insurance Fund only has 62 billion dollars, enough money to cover only half a percent of U.S. Bank Deposits, meaning it would be unable to even scratch the surface on covering the derivative losses which it would be forced to insure as priority. This means that if a systemic crash did take place, the FDIC would pay out its insurance towards derivatives and from this the FDIC would become completely broke and trillions in toxic derivatives would still be running wild in the U.S. financial system, the banks involved would be bankrupt, and the depositors within the bank would be screwed. --- https://s3.amazonaws.com/superstation95.com/Living-Will-Letter-Issued-to-JPMorgan-Chase.pdf https://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street_Reform_and_Consumer_Protection_Act http://www.zerohedge.com/news/2016-04-14/first-silver-now-gold-deutsche-bank-admits-it-also-rigged-gold-prices-legal-settleme http://www.bloomberg.com/news/articles/2016-03-10/jpmorgan-goldman-said-to-discuss-buying-deutsche-bank-swaps https://www.sprottmoney.com/blog/the-jpmorgan-silver-hoard-is-there-any-metal-in-it-jeff-nielson-sprott-money-news.html http://www.zerohedge.com/news/2014-12-12/presenting-303-trillion-derivatives-us-taxpayers-are-now-hook http://www.silverdoctors.com/headlines/finance-news/negative-interest-rates-in-the-us-just-ask-the-fdic/