(Goldman Sachs CEO Lloyd Blankfein has claimed his company is “Doing God’s Work.”)
If there were ever a signal that large investment banks may be preparing for financial crisis and that they’ll be using your money to bail themselves out when it hits, this could be it.
According to a new report from the Financial Times via The Daily Star, mega-banking giant Goldman Sachs is now getting into the retail banking business and looking for more depositors to help fund their operations. The bank has reportedly “been under pressure to develop new streams of funding” after posting lower than usual equity returns in the first quarter of 2016. In response, Goldman recently acquired a portfolio of 145,000 retail depositors from GE Capital totaling some $16 billion in deposits.
Goldman now intends to aggressively pursue retail depositors whose accounts they will then tap to help fund their investing and trading operations:
The bank last week launched GSBank.com, a platform it inherited via the acquisition of a $16bn book of deposits from GE Capital.
Through that deal it gained about 145,000 retail depositors and is now seeking more, offering annual interest rates of 1.05 per cent on a savings account – many times better than the rates of the biggest US brick-and-mortar lenders such as Citibank, JPMorgan Chase or Bank of America. Stephen Scherr, Goldman’s chief strategy officer, said the aim was to broaden sources of funding for GS Bank, its New York State-chartered lender. Until now, the unit has focused on wholesale funding sources and so-called “brokered deposits”, which are bulk sums that banks acquire from brokers in exchange for high interest rates.
By tapping regular retail depositors, Mr Scherr said, the bank can open up “a different avenue to use, with a different orientation and a different tenor”.
For as little as $1 you can now start your own savings account with Goldman at a whopping annual interest rate of 1.05%.
What could possibly go wrong when you deposit your money with one of the firms directly responsible for the fraud that led to Crash of 2008? They are, after all, doing God’s work according to Goldman CEO Lloyd Blankfein.
While depositing your money at Goldman’s new bank could well be a spiritual experience, we highlight for our readers the fact that Goldman is doing this for one specific reason: to fund their trading operations with new deposits from retail customers. And if they’re doing business anything like they did ahead of the 2008 crash, we can assume that when the whole thing blows up again Goldman is going to be in serious trouble, and that means depositors will be in serious trouble. Back in 2008 Goldman Sachs was “forced” to take a $10 billion TARP bailout from the Federal government.
According to Federal Reserve Vice Chairman Stanley Fischer, the next time such a crisis strikes, there will be bailouts, but not like before. This time, those bailouts, dubbed “bail-ins” will not come from the government, but rather, from you, the bank account holder.
Recent comments delivered by Federal Reserve Vice Chairman Stanley Fischer suggest that not only are global and domestic economies still struggling, but the U.S. government itself is preparing financial contingency plans in anticipation of another widespread economic event.
However, this time around, according to Fischer, the government won’t be bailing out financial institutions in need of cash. Instead, failing banks will turn directly to their unsecured creditors when they need money. And within this context, that means you:
As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding–this cushion is known as a “gone concern” buffer.
Though Fischer doesn’t detail exactly what “bail-inable long term debt” actually is, one only needs to look to Europe, namely Cyprus, to understand what he means.
When the Cypriot banking system collapsed because of an inability to service its debt in 2013, the government forced bank depositors to cover the debts. This led to banks forcibly seizing funds from depositor accounts in order to pay their debts.
Goldman Sachs needs more money for their Wall Street gambling houses.
They’re coming to you to get it.
And when the whole thing detonates, they’ll simply seize your funds to compensate for their losses… and every other retail bank in America will do the same.
Just so we’re clear, we are all bank creditors by these definitions, thus the regulations being created apply not to just large bond holders, but every individual depositor.
Notice how they didn’t say “in case future bank rescues are necessary.” That’s because they know what’s coming.
…When the next banking crisis hits the United States you can be assured that creditors (i.e. individual depositors) will be forced to ‘bail them in.’
…So, if you’ve got any significant amount of money at financial institutions, you’d better think twice about how safe it is.
You’ve been warned.
Hattip Durango Kid
We are all mortals as Blankfein well knows given his recent cancer diagnosis. He’ll be gone soon and then God will judge whether or not he was doing His work here on Earth.
If there is a Hell, Blankfein and many of his friends will be burning in it.
I have learned to ask who is their god. I do not want a Satanist “praying” for me.
The people running this world consider Lucifer their god. So when they say they are doing gods work they know they are misdirecting you. They are doing their gods work but not the God of creation. It’s their joke that most Americans assume they refer to a Christian God and therefore are guided by that moral tradition which they most certainly are not.
Blankfein definitely meant he’s doing god’s work…. but like you said, he may have a completely different perspective on the creator:
He’s a Zionist bankster and owes you money too…
Anonymous rest assured there is a Hell. But wealth or lack of it, won’t determine whether you spend eternity there. A few on this site, that may or maynot be wealthy will be there. Your relationship with Christ will determine that. Trekker Out. Christ is Lord!
THROW ALL THE JEWS EXCEPT ME OUT OF AMERICA ALONG WITH ALL OTHER NON-WHITES. THEY’RE NOTHING BUT PARASITES ALL.
BUILD A REAL-LIFE PENAL ENCLAVE SICH VIE ESCAPE FROM NEW YORK.
IT’S THAT SIMPLE.
Anonymous, I agree but I like to take care of this evil SOB and his entire tribe using my own hands since such would be doing the God’s work for all the lives these parasites have destroyed.
He rich enough to buy a full body transplant yet? LOL
Because if not… from his POV he’s sitting on a giant mountain of toilet paper after hearing the health diagnosis.
Yes I think it is. When you can’t get any bigger the only thing left to do is go smaller. So Main street banks are much smaller.
1%? Im gonna run right down there and open up an account.
Yeah, open me one too Jacknife!
Simple strategy. Put your liquid cash in the bank that holds your mortgage. If they “bail-in” your funds, then you have the option to “bail-in” your mortgage payments. In other words, if the steal your funds, you don’t pay the mortgage until you’ve recouped the funds.!!!
Some say to have 6 months worth of cash stashed to pay your bills and such. Our mortgage is paid six months in advance. Which would you prefer? If the dollar actually collapsed, at least we are 6 months ahead. IMHO. Stay quiet Be smart.
Jack , they will credit your account against principle, and you will no longer be six months ahead.
Happened to me in 2008 .
Just a heads up on that …..
It was a part of “restructuring” .
You cant make the rules , they make the rules as they go .
I thought that when I started paying ahead but we get a bill for the next month after we pay the current month. So I started paying in advance and I just just paid the bill they sent for November 2016. Im gonna have to call them and make sure bout that. I paid 2 months ahead a couple years ago and then didn’t pay till the note was due and had no problems from it. But banks aren’t to be trusted, they may switch up and credit the principle. We’ll see.
Years ago I prepaid like that and got statements showing my next payment was due months out. My current home, no. I immediately started prepaying and it never pushed my next due date out.
it has been known for some time what these people are, so why are they still being allowed to rob everyone?
Are you expecting some powerful and righteous entity to appear on the scene and stop this historic period of fraud, corruption and destruction ? Someone, say like the U.S. GOvernment ?
Apparently you haven’t been watching the BIG picture unfold since Kennedy was assassinated. This country has discarded their religious foundations, allowed all their money to be controlled by a foreign owned Central Bank, encouraged and laughed as Hollywood has systematically indoctrinated our children in every single taboo know to mankind, then elected over and over, individuals bent to destroy the United States of America in every way possible. Now the stage is getting set to elect the final anti-Christ to finish the work of the half-black jihadist
Yep , GRAMPS , we are watching the slow slide into a socialist republic .Its obvious to those who will open their eyes and see it!
The destruction is willful and deliberate and for nothing less than personal gain by about 535 people as i see it .
their day of reckoning is on a fast track , Just be sure your not standing on the rail
I’m just sick of it all.
Too big to fail Goldman Sacks of money invests wisely in their future, witness Killary Klinkton.
and History says Jessie James , and Billy the Kid were outlaws and criminals
Hhahahahha yeah ,, now its a cops job?
maybe they need to be delt with like these guys were
and these Banksters too while were at it
like i said dont be standing on the rail
Loyd Blankfien is doing God’s work. Just wonder what God that is who’s work he’s doing. Could be the God of Death and Destruction. Could be the God of The Golden Calf. Could be the God of War. Could be. Just look at that angelic face. He doesn’t look like a devious beast. He looks like a man of God.
YOU KNOW WHO IT IS
sand dweller ?
My Ba’als are itchy.
Kinda looks like Elmer Fudd
I’d like to tell a banker joke here, but the problem with banker jokes is the bankers don’t think they’re funny and the other people don’t think they’re jokes…
How many on this board four years ago would have predicted that the following would be at or near all-time highs?
1. Global liquid fuels production
2. Car sales
3. Per capita miles driven
Hahahahaha…My plans reflect the opposite. Betting against the Fed and the banks has been a losing hand for me.
I haven’t had a “bank” account since 1979.
I stay with credit unions. They are locally run.
provide lots of services and don’t charge me
monthly fees. As for Greek style “haircuts” I
don’t have that much in savings. Most those
countries took everything above the government
insured amount. I think this was everything above
$150,000 in Cyprus. Here it would be $250,000.
I have no where near that kind of money.
What really caused the problems in Greece was closed bank
doors and limits on ATM withdrawals. Get a good fireproof safe,
bolt it down to a few tons of concrete and keep some money at
home. Unless you have a CD you aren’t loosing much in interest to
keep several thousands stashed at home.
Never put your money in a for-profit bank!
Your point about Cyprus is an excellent one, but it may not be the case here or in places like Germany (where Deutsche Bank will blow up immediately after Italy and its banks blow up).
The problem is credit derivatives. The five biggest US banks have combined exposure of around $270T and combined book assets of only $9T. That means they are leveraged 30x book assets. Deutsche is leveraged a ridiculous 105x book assets. Credit derivatives, aka selling credit default insurance, is a juicy business as long as no one you’re underwriting insurance on blows up. For the banks, this was free profit for years, free profit they used for things like share buy-backs and executive compensation (in other words, nothing of a prudent nature that one would expect from an insurer).
To understand where this is headed, I’ll quote a figure from a You Tube video I watched through one of the many links on this page: for every $100 in deposits on their books, the banks have $.06 in physical cash available to pay out.
What does that mean in terms of when we see the big blowout? Running on the banks is an exercise in futility because there’s nothing there to run for. If you’re lucky, you’ll be able to access what’s in your bank account by some type of debit card, either as electronic money or limited ATM withdrawals of physical cash. The worst case scenario is bank accounts being capped at a certain amount that is far below the FDIC limits, and everything above the cap being swapped out with stock from these re-animated zombie banks.
They’re going to have to do something in return for grabbing your money to bail themselves out. Reimbursing their customers with something they can actually use, like physical cash or hard currency, has been successfully propagandized as taboo. How? Remember the original bailouts? They were propagandized as a money printing machine when, in reality, these were nothing more than accounting entries on a computer screen involving “money” that would never come into physical existence. It was actuarial money, not actual physical money.
What is that magic “something” to get around all those thorny issues? Shares of stock. You can print as many certificate shares as you want and never be accused of throwing bags of money out of a helicopter. Effectively, you’d be taking physical cash out of circulation by replacing it with shares of zombie bank stock. What happens when the customer needs to sell shares so they can pay their bills? Proceeds would become electronic money on a debit card linked to the customer’s trading account, which would be linked to their checking.
Your best defense? Keep in your checking only what you need to get the job done today. Keep the rest as physical cash at your cache locations. Point to remember: when the big blowout happens, physical cash will be a hard commodity to come by.
I truly believe hat if banks seize their depositors money,they will have visits from some very angry gunowners
Immigrants are adept at USING the system at taxpayers expense…
Feds silent as migrant flights keep on coming
“A State Department officials admitted Tuesday that the Obama administration has not demanded that Central American countries end their efforts to airlift Cuban immigrants to the southern U.S. border.”
“Costa Rica and Panama have flown about 8,000 Cuban migrants to northern Mexico, part of an “upsurge” in migration that has brought about 18,500 Cubans to the Texas-Laredo Border Patrol field office over a five-month period.”
“A significant number of people are drawn to this country from Cuba because they know when they arrive they can step foot on dry land, they will immediately receive status and they immediately qualify for a package of federal benefits that no other immigrant group would qualify for unless they can prove they’re refugees,”
I’m sure they’re some of Cooba’s best citizens.
The seamless transition from George W. to BHO should have raised more disdain from Americans as the obvious bailout fix was in. Oh that’s right, that is what happened but was ignored. Re-imagine that, a Kenya born murderous usurper on the take while his supporters cheered him on and elected him twice despite his hope and change being no hope and more of the same tyranny. Have American voters learned anything since then, apparently not. These same Hussein (or whatever his real name is) voters are squealing over Hillary’s campaign. You just can’t fix stupid. About to be proved again.
Are they going to confiscate our money in the bank?
Joe, they won’t call it that. You’ll be “contributing’ to the bank’s “health”. Consider it charity 🙂
I’ve been withdrawing slowly but surely all of our savings on a regular basis. It’s safer at home.
I’m sure she will put her money with her employer even while she is on leave and recommend her husband put all his and the assets of what he runs right in these accounts. Heidi Cruz could be a great spokeswoman.
Joe they are gonna steal the $ in your accounts if it saves their bacon. When that happens we the people should come out with attacks on the bank scum. It’s just that simple. Hope your prepared. I’m gonna steal back what was mine because you cannot steal what belongs to you. Just remember once you have nothing you have nothing to lose.