THE END OF BANKING

Message from our Chief Executive Officer: Sunny Thiara

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In 2022, I wrote a publication explaining the demise of the banking system.? In 2023, I wrote a follow-up Op-Ed concerning the regulatory changes and policies that would lead to liquidity challenges within the banking sector mainly with reserve requirements being waived.? During this period, the dollar was also under attack with BRICS.?

The Basel Accord, being a set of agreements intended to regulate the risk of capital, market, and the operations of the banks which was meant to limit the exposure should there be a run on the banks.? By 2025, it will be required that a bank’s balance sheet be backed by a percentage of assets.?

Shortly following my publications, we saw the first attack on the banks with Silicon Valley Bank, Signature Bank, First Republic, and Silvergate all imploding.? First Republic Bank was rescued by the larger banks and the Federal Reserve came in as a hero with the Bank Term Funding Program.? The offering was designed as a 12-month loan to the depositories pledging the U.S. Treasuries, Mortgage -Backed securities, and other qualifying assets as collateral.? These loans were valued at par.? The Federal Home Loan Bank had realized $6.7 Billion in profits last year, while FDIC experienced $35.5 Billion in losses from the failure of Silicon Valley Bank, Signature Bank, and First Republic Bank.?

The Federal Reserve Board has scheduled March 11, 2024 as a deadline affixed to the Bank Term Funding Program (BTFP) to cease making new loans.??

In 2023, Credit Suisse had also fallen victim to the regulatory changes. ?The trigger stemmed from 0% interest rates in 2021 and the lack of option when the economic influences would target the bond markets.? During this period, many of the Credit Suisse bonds specific to AT1 convertible bonds were considered worthless.? This was eye-opening as equity holders were put in a superior position over the bond holders.?

I am making another stark warning to the banking sector; that being the demise of many more banks.? FDIC was scheduled to make an announcement on February 29, 2024, and as of yet we are still waiting on their press release.? I had mentioned in previous publications my concern with commercial paper, especially as it relates to capital markets.? Many of the commercial investors that had taken loans prior to the interest rate increases are finding themselves in a complex dilemma.? They are no longer able to debt service their loans with today’s market interest rates.? The default rates are tremendous and commercial assets are declining in their evaluations. There were 635 U.S. commercial real estate foreclosures in January, up 17% from the previous month.? ?In the next 2 years, it is expected that over $1 Trillion in commercial mortgages will come due. ?The banks that have lent their money out backed by these commercial assets are at risk.? The Federal Reserve used to be profitable where the profits were shared with Treasury.? To understand the severity in today’s environment when dealing with bank reserves and bank repos, the Fed is paying $600M/per day to the commercial banks.?

The current U.S. National Debt is over $34.4 trillion and rising $1 trillion every 100 days.?

The message is clear and very easy to follow especially if you pay close attention to the banking executives and their liquidation of stocks.? Jamie Dimon of JP Morgan Chase is the most well-known figure running the most successful bank in the United States with over $3.9T in assets.? He announced the sale of over $150M worth of bank stocks on February 23,2024.? I think it only prudent to ask the question, why now? What do these big bankers know? And what are they not sharing with the public? Leon Black, CEO of Apollo Global Management, was also known to unload $172.8M of company stock.? Something is amiss.??

The liquidity in the market and the banks are perilous.? The storm is upon us.? I am predicting the largest banking crash and stock market crash since the 1930’s.?? There have been over 140 bank branches closed in the month of January alone.? In the past 12 months Wells Fargo has closed 258 branches, JP Morgan Chase closed 165, and Bank of America nearly 100 according to S&P Global Market Intelligence.? In all, the number of bank branches in the U.S. have shrunk over one-fifth from the year previous.?

?Over the past 30 days the crypto market has regained steam.? The U.S. Government is holding over $13.36B of Bitcoin.? The banks have not introduced Bitcoin to their platform as of yet, which will be another victory in the crypto world when they do.? The price of GOLD is now over $2,000 an ounce.?? The central banks have been secretly buying up precious metals, mainly gold and silver in the last year.?

The largest investors of U.S. Treasuries being Japan and China have reduced their purchasing positions and have begun liquidating a fraction of their holdings.? The amount of debt to GDP is staggering. ?

The main stream media is missing key points in the market that can impact everyday Americans.? For those that heed the warnings, have already begun converting cash to assets as a way to hedge against the currency.? The Money Creation has moved back to U.S. Treasury and away form the Federal Reserve as it was intended.? Our U.S. Dollars has been under attack by the BRICS, a much stronger currency mainly because it is not a fiat currency.?

Come tomorrow morning, the BTFP will begin ceasing their lending as cover to the banks which will begin the process of experiencing the impact on liquidity within the system.? Some of the signs you will begin to see is that the banks will tighten their lending once again.?? The unregulated private sector, mainly the hedge fund products, will continue to offer lower credit standards to fill the appetite and eventually that will lead to more delinquencies.?

Prepare yourselves for what is to come.?

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