Many folks believed that after Omarova’s recent law journal article became widely analyzed, she would remove herself from consideration or Biden would quietly ask her to step aside. As Wall Street On Parade revealed last week, Omarova’s 69-page paper published in the Vanderbilt Law Review in October, proposed the following:Omarova is now facing a new brouhaha for calling the very industry that she would supervise the “quintessential a**hole industry” in a 2019 Canadian feature documentary....
- (1) Moving all commercial bank deposits from commercial banks to so-called FedAccounts at the Federal Reserve;
- (2) Allowing the Fed, in “extreme and rare circumstances, when the Fed is unable to control inflation by raising interest rates,” to confiscate deposits from these FedAccounts in order to tighten monetary policy;
- (3) Allowing the most Wall Street-conflicted regional Fed bank in the country, the New York Fed, when there are “rises in market value at rates suggestive of a bubble trend,” such as with technology stocks today, to “short these securities, thereby putting downward pressure on their prices”;
- (4) Eliminate the Federal Deposit Insurance Corporation (FDIC) that insures bank deposits at commercial banks across the United States;
- (5) Consolidate all bank regulatory functions at the OCC – which Omarova has been nominated to head.
Wall Street On Parade
Biden’s Nominee Omarova Called the Banks She Would Supervise the “Quintessential A**hole Industry” in a 2019 Feature Documentary
Pam Martens and Russ Martens
Biden’s Nominee Omarova Called the Banks She Would Supervise the “Quintessential A**hole Industry” in a 2019 Feature Documentary
Pam Martens and Russ Martens
https://wallstreetonparade.com/2021/11/bidens-nominee-omarova-called-the-banks-she-would-supervise-the-quintessential-ahole-industry-in-a-2019-feature-documentary/
1 comment:
Moving all accounts which are supposed to be totally safe to the central bank makes sense. Reason is that the only reason deposits (up to the deposit insurance limit, 100k Euros in the EU) are in fact totally safe is that they are underwritten by the state (the CB in some countries). I.e. they are sort of CB accounts anyway.
Plus there is a glaring clash between that total safety and depositors being able to earn interest: if they're earning interest, then their money is effectively being loaned out by banks, and there is no such thing as a totally safe loan: some borrowers fail to repay loans, sometimes in spectacular numbers: witness NINJAs.
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