On March 15, there was a secret meeting of the US Banking Elite to converse about the impact of COVID-19. The banks in attendance included Wells Fargo, Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and State Street.
Up until this moment, these banks have profited immensely by doing a misleading system of buying back their own stock with free money handed to them from the federal reserve. However, it became painfully evident that with Mom and Pop investors hunkering down and hoarding necessities to combat the mass-hysteria around COVID-19, their system would no longer work.
Reading between the lines of their official Statement you can see exactly what's wrong... These Banks are highly leveraged in the derivatives market and highly invested in China and the wheels are about to come off of the system. They are misleading the public by saying things like, "members of the Forum had repeatedly passed the Federal Reserve's annual stress tests" when in fact, Chase Bank Failed a stress test in 2019 and was forced to retake it.
Next, they reveal how much money they have, as mandated by law to survive stress tests - a measly $914 billion! The Federal Reserve, on the same day, dropped Reserve Requirements to ZERO - effective March 26, 2020. Read Official Fed Statement>>>
The $914 billion, that barely puts a dent in the $14 Trillion per day derivatives market, is about to be unleashed on March 26. Then the banks will start RUNNING on EMPTY. Be prepared.
Here's their official Statement:
Washington, D.C. – The Financial Services Forum announced that its eight members decided today to temporarily suspend share buybacks for the remaining period of the first quarter and the second quarter of 2020.
The COVID-19 pandemic is an unprecedented challenge for the world and the global economy and the largest U.S. banks have an unquestioned ability and commitment to supporting our customers, clients and the nation.
The decision on buybacks is consistent with our collective objective to use our significant capital and liquidity to provide maximum support to individuals, small businesses, and the broader economy through lending and other important services. The decision is consistent with actions by the Federal Reserve, the administration, and the Congress.
Financial Services Forum member institutions are Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, State Street, and Wells Fargo.
Each member institution retains the ability to reinstate its buyback program as soon as circumstances warrant. The Forum members have apprised the Board of Governors of the Federal Reserve System of their decision.
Members of the Financial Services Forum, who are subject to the Large Institution Supervision Coordinating Committee supervisory program, remain strong and well-capitalized. They collectively have increased their capital, which acts as a buffer in times of stress, by more than 40 percent in the past 10 years to $914 billion. The members of the Forum have repeatedly passed the Federal Reserve’s annual stress tests, showing they are able to continue to lend and support the economy even during a severe economic downturn