The Financial Times reported on March 13th Porticoes Capital has been granted the ability to purchase some of these failed banks, per a regulatory filing.
‘Porticoes is like a special purpose acquisition company (SPAC) in that it would need to acquire another company before going into business,’ Pymnts reported. ‘But it differs from a SPAC in that the amount it raises from investors will depend on the size of the bank it acquires. The report also postulates that Porticoes’ plan to target failed banks suggests it anticipates more trouble for the industry after last year’s regional banking crisis, kicked off by the collapse of Silicon Valley Bank (SVB).’
I’m an advocate for the shelf charter. In the failure of SVB, numerous potential bidders were excluded from the process, and as a result the cost to the FDIC deposit insurance fund might not have been minimized.
Brian Brooks, partner at law firm O’Melveny & Myers and a former acting comptroller of the currency, told the FT.
The WinePress has reported in recent weeks that the specter of bank failures are increasingly being recognized, with Federal Reserve Chair Jerome Powell stating during a Senate Banking Committee that bank failures will occur, especially with medium and small institutions, due to their over-exposure to commercial real estate; though Powell ambiguously claimed that the crisis will be “manageable.” A New York Fed board member recently claimed that he suspects around 500 banks or so are on the chopping block.
AUTHOR COMMENTARY
Go back all the way to January, 2021, when I was warning about the coming collapse of the banks: I had basically predicted this was going to start happening, that the banks were going to need bailouts and will be bought-up by private investment groups.
I wrote at the time: “The commercial real estate market was already seeing pressure prior to 2020, but once the lockdowns began, that sector has been getting lacerated. So as more banks shut down, this means more vacant building[s] that will rot and decay as many businesses and companies will not buy them up – unless it is private equity firms, and other mega corporations.”
Well, now it is coming to pass, the regulators are already making sure their buddies and private investments are aligned to snap up these failing institutions, and get access to all their best assets. Another con-game playing out right in from of our eyes. And it’s not just this firm: others especially such as Blackrock, Vanguard, and State Street also have blank checks and deep pockets to snatch whatever assets and reality they want.
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Babylon inflates before she gets deflated permanently. Puff, puff, puff.
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Psalm 12:5 For the oppression of the poor, for the sighing of the needy, now will I arise, saith the LORD; I will set him in safety from him that puffeth at him.