Dumb and Dumber - or - How 'Federal Oversight' Really Works

"Believe me, Mr. Samsonite, my friend Harry and I have every intention of fully reimbursing you."

One of my all-time favorite movies is 'Dumb and Dumber.' Yeah, I know it is crude, low class and mindless. That's why I watch it about once every year. It's a very simple and funny plot: two idiotic losers gain access to a briefcase full of CASH and then the fun begins. They proceed to blow it on stupid things, replacing that cash with hand-written IOU's. Not to spoil it for you, but at the end the cash is GONE and the idiots have nothing to show for it, except for IOU's. Here's that scene.

One of the nation's largest financial institutions - #SiliconValleyBank has been shut down by Federal regulators. Unfortunately for about 90% of the investors at #SVB the money has been replaced by virtual government-backed IOU's. The FDIC only guarantees $250,000 in any account. So, if you HAD (for example) $1,000,000 in an #SVB account just a few days ago, you MAY get $250K back, but the other $750K of YOUR MONEY is somewhat fuzzy at this point.

Meanwhile, how these investors cover their employee payroll, vendor payments, leases and all of the other cashflow needs of their businesses is, well, up to them. They're up the creek without a paddle, SOL and Hosed.

But never fear!! The government is on the job, promising to make everything okey-dokey. All of this was just a little boo-boo, and it will all be fine. The investors just need to trust them. And let them do their jobs.

It would have been nice if these agencies had actually done their jobs sooner and better. Or at all...

There are many Federal oversight and regulatory agencies who are charged with making certain that financial institutions do the right things in order to protect their investors. This article explains the agencies and their appointed roles in oversight of financial institutions like banks, credit unions, investment firms and the stock market. If you have any money, it is probably held in at least one of them. Or it might be...

In the case of #SVB NONE of these regulators or agencies did what they should have done. The money, now estimated at $200 BILLION DOLLARS is GONE. Nice, huh?

These 'oversight agencies' are funded by taxpayers, and their employees are all quite well-paid. I'm willing to bet that almost NONE of those employed by these agencies will be penalized, laid off or fired for not doing their jobs.

But the employees of the businesses who lost all or most of their money will be experiencing the consequences, up close and personal. No jobs, no pay, no stock value. In Yiddish, it is common to refer to peddling untruths as 'bupkis' or farkoyfen bobkes, “selling bobkes.” It can also mean “nothing at all.” So when asked how much a merchant made on a deal gone sour, he may answer that his profits were bupkis, “nothing at all.” And that is what many people now have... Zilch, nada, zero, nothing at all. Their money is gone, replaced by IOU's. From the same agencies that should have prevented all of this.

NOTE: I am not a financial advisor, a banker, nor a wealthy investor. I did work with many banks during my previous career, and know several bankers. I'm retired. But I can read and think for myself. My skepticism has often prevented me from being fleeced and cheated. And yes, I have lost money on some investments.

I think it's time for Americans to start asking some very hard questions and getting some very clear answers - very soon. Oh, and watch 'Dumb and Dumber.' Many of you who recently had businesses and jobs and money could really use a laugh right now... I truly feel for you, but I can't help you with the money stuff.

Russ Minary specialized in helping businesses with hiring and talent consulting before retiring.?Visit his website at OnPurpose Enterprises, read his many LinkedIn articles or contact him directly for more information.