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The largest financial institutions deemed systemically important are expanding even more during the 2023 banking crisis, leading to greater systemic risks, according to economists who spoke to the Daily Caller News Foundation.
When the FDIC bailed out Silicon Valley Bank (SVB) and Signature Bank in March due to a systemic risk exception, depositors moved their money to the biggest banks in the country. “Larger banks mean larger bailouts,” Dr. Thomas Hogan, senior research faculty at the American Institute for Economic Research and former chief economist for the Senate Committee on Banking, Housing and Urban Affairs, told the DCNF.
“For example, JPMorgan Chase, the nation’s largest bank, just got a sweetheart deal from the FDIC to acquire failing First Republic Bank,” he said.
These developments and future ones will cause more consolidation in the sector. “Increasing the concentration in the banking industry simply increases the systemic risk,” E.J. Antoni, research fellow for Regional Economics at the Heritage Foundation’s Center for Data Analysis, told the DCNF.
“There were already concerns about concentrations of deposits in the banking industry, both because a few firms already held such a large portion of the deposits and because the number of banks in the country has been declining for years,” he said. “These concentrations spawned the ‘too-big-too-fail’ mentality.”
The largest 25 banks in the U.S. gained $120 billion in deposits while smaller banks lost $108 billion immediately following the SVB and Signature rescues, according to The Wall Street Journal.
Regional bank stocks have rapidly fallen since then. PacWest Bancorp, Western Alliance Bancorporation, Zions Bancorporation, Comerica Incorporated, and KeyCorp have all plummeted since March when the crisis began.
The biggest banks also expanded after the 2008 financial crisis because they were deemed too valuable for the economy to collapse, according to the WSJ. Their immense profitability enabled them to survive and prosper during the current regional bank turmoil.
Antoni added that the government will likely enact additional regulations following this crisis, thwarting competition.
“Regulation imposes costs on businesses, including banks, and those costs have to be paid for by the banks’ customers. Large banks are able to spread those costs out among more customers and so the per-customer cost of compliance is low relative to small and mid-sized banks,” he said. “Large banks are also more influential in the crafting of regulation, and are better positioned to steer any regulation in a direction that helps them while hurting their competitors.”
More regulations are not the solution and were one reason banks failed recently, Hogan told the DCNF.
“The banks that failed were mostly holding assets that the regulators deemed very safe,” he added. “The problem is that they were highly subject to interest rate risk, which the regulators ignored. … Bank regulators were asleep at the wheel, and their regulations have made bank failures worse, not better.”
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Most “Conservative” News Outlets Are on the Big Tech Teat
Not long ago, conservative media was not beholden to anyone. Today, most sites are stuck on the Big Tech gravy train.
I’ll keep this short. The rise of Pandemic Panic Theater, massive voter fraud, and other “taboo” topics have neutered a majority of conservative news sites. You’ll notice they are very careful about what topics they tackle. Sure, they’ll attack Critical Race Theory, Antifa, and the Biden-Harris regime, but you won’t see them going after George Soros, Bill Gates, the World Economic Forum, or the Deep State, among others.
The reason is simple. They are beholden to Big Tech, and Big Tech doesn’t allow certain topics to be discussed or they’ll cut you off. Far too many conservative news outlets rely on Google, Facebook, and Twitter for the bulk of their traffic. They depend on big checks from Google ads to keep the sites running. I don’t necessarily hold it against them. We all do what we need to do to survive. I just wish more would do like we have, which is to cut out Big Tech altogether.
We don’t get Google checks. We don’t have Facebook or Twitter buttons on our stories. We don’t have a YouTube Channel (banned), an Instagram profile (never made one), or a TikTok (no thanks, CCP). We’re not perfect, but we’re doing everything we can to not owe anything to anyone… other than our readers. We owe YOU the truth. We owe YOU the facts that others won’t reveal about topics that others won’t tackle. And we owe America, this great land that allows us to take hold of these opportunities.
Like I said, I don’t hold other conservative sites under too much scrutiny over their choices. It’s easy for people to point fingers when we’re not the ones paying their bills or supporting their families. I just wish there were more who would make the bold move. Today, only a handful of other major conservative news outlets have broken free from the Big Tech teat. Of course, we need help.
The best way you can help us grow and continue to bring proper news and opinions to the people is by donating. We appreciate everything, whether a dollar or $10,000. Anything brings us closer to a point of stability when we can hire writers, editors, and support staff to make the America First message louder. Our Giving Fuel page makes it easy to donate one-time or monthly. Alternatively, you can donate through PayPal or Bitcoin as well. Bitcoin: 3A1ELVhGgrwrypwTJhPwnaTVGmuqyQrMB8
Our network is currently comprised of six sites:
- NOQ Report
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- Based Underground
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We are also building partnerships with great conservative sites like The Liberty Daily and The Epoch Times to advance the message as loudly as possible, and we’re always looking for others with which to partner.
Some of our content is spread across multiple sites. Other pieces of content are unique. We write most of what we post but we also draw from those willing to allow us to share their quality articles, videos, and podcasts. We collect the best content from fellow conservative sites that give us permission to republish them. We’re not ego-driven; I’d much rather post a properly attributed story written by experts like Dr. Joseph Mercola or Natural News than rewrite it like so many outlets like to do. We’re not here to take credit. We’re here to spread the truth.
While donations are the best way to help, you can also support us by buying through our sponsors:
- MyPillow: Use promo code “NOQ” to get up to 66% off AND you’ll be helping a patriotic, America First company.
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- MyPatriotSupply: Stock up on long-term food, survival gear, and other things that you’ll need just in case things don’t recover and we keep heading towards apocalypse.
We know we could make a lot more money if we sold out like so many “conservative” publications out there. You won’t find Google ads on our site for a reason. Yes, they’re lucrative, but I don’t like getting paid by minions of Satan (I don’t like Google very much if you couldn’t tell).
Time is short. As the world spirals towards The Great Reset, the need for truthful journalism has never been greater. But in these times, we need as many conservative media voices as possible. Please help keep NOQ Report and the other sites in the network going. Our promise is this: We will never sell out America. If that means we’re going to struggle for a while or even indefinitely, so be it. Integrity first. Truth first. America first.
Thank you and God Bless,