👉The Truth about Archegos Scandal & How Shadow Banks Could Cause The Next Financial Crisis? https://youtu.be/M8aUy3S2Yk4

👉The Truth about Archegos Scandal & How Shadow Banks Could Cause The Next Financial Crisis? https://youtu.be/M8aUy3S2Yk4 Greensill and Archegos Capital are the latest high-profile shadow banking financial scandals to hit the headlines. Credit Suisse is still unloading its position in the wake of Archegos Capital Management’s blowup. The bank was selling 19 million shares of Discovery’s class A stock on Tuesday. Credit Suisse slashed the amount of money set aside for employee bonuses by hundreds of millions of dollars and used the savings to limit the financial hit from the implosion of Archegos Capital Management. Wall Street could be staring at a meltdown as big investment banks, including Nomura and Credit Suisse, rush to unwind bets in various stocks after a common client defaulted on margin calls. Although the client's name has not been confirmed, media reports claim it to be Archegos Capital Management, a family office run by Bill Hwang. The margin default may lead to Nomura reporting a one-time loss of $2 billion in the March quarter, while Credit Suisse may incur a loss of $1 billion. These two scandals are just the tip of the iceberg, as shadow banking’s lack of regulation could spark another debt crisis in 2021. So what are shadow banks, and why you should be worried? The average person has no idea what the shadow banking system is. The problem with the shadow banking market; it is shadow, you cannot see it. The Technical definition of the Shadow Banking System is non-traditional banking, which doesn't tell you anything. I like to phrase what banking is; Banking is a regulated Bank with the FDIC, which takes in deposits and makes loans. Anything else done by anybody else is Shadow Banking. In other words, it is outside of the banking system. The shadow banking system consists of lenders, brokers, and other credit intermediaries who fall outside the realm of traditional regulated banking. It is generally unregulated and not subject to the same kinds of risk, liquidity, and capital restrictions as traditional banks are. The shadow banking system played a significant role in the expansion of housing credit in the run-up to the 2008 financial crisis but has grown in size and largely escaped government oversight even since then. The shadow banking system is a key component of the U.S. economy, but the financial crisis has frozen it solid. Banks make extensive use of shadow banking to get around the rules, with worrying consequences. Shadow banking hugely exacerbated the fallout from Lehmans Brothers' collapse in 2008, and yet there is now more banking-like activity going on in shadow banks than there is in banks themselves. This poses real risks to global financial stability. We propped up wrong come and run with these crazy financial structures that nobody had heard of until they blew up. Then we did it again with these crazy structures for subprime that most people haven't heard of until they blew up. And what it does; it takes traditional credit, traditional lending, and it transforms it into something that it's not. In other words, you can take a long-dated financial asset or just asset like fiber optics for Worldcom, and the shadow banker will take that and transform it into something that looks like the church; a traditional bond with a shorter maturity and a very high credit rating. It looks super sync, but it's really backed by assets that are very volatile. And when these things unwind, and people want to sell them, there's no market for them. And so the price collapses, and that shuts off the flow of money to these companies that were trying to boost their stock prices. It was a shadow banking system that injected the virus called credit default swaps into the system that blew up in 2008. And right now, we're doing the same thing again. Why are these investment banks not being marched in front of congress like the Reddit people were? They took hundreds of billions of dollars of investors' money and used it to buy up stocks for some guy's family office, and when it all came crashing down, he left them holding the bag and walked away? How is this not market manipulation? I'd like to hear them answer this under oath. One hundred billion dollars of buying concentrated in a few stock names and look at how the prices ran up. There is more sanity in an insane asylum than in the financial sector. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. The 2008 recession was remarkable because it was caused by a failure of investment banks as opposed to retail banks. Retail banks that take deposits and make loans are supposed to be responsible for financing business indirectly. Investment banks are supposed to facilitate the direct financing of business by selling stocks and bonds. However, investment banks have developed innovative ways to provide indirect financing too. This is what is known as shadow banking. One explanation for the recession is that it was caused by a panic in the shadow banking sector. Lehman Brothers, for example, failed because its “depositors” stopped lending money to it. The shadow banking system (or non-bank financial system) played a critical role in the recent financial crisis. Shadow banks are financial entities that borrow short-term and lend long-term, but unlike traditional banks, they are outside the purview of conventional banking regulation and do not have access to a lender of last resort or federal deposit insurance. The shadow banking system grew considerably in the lead up to the 2008 Financial Crisis due to its competitive advantages over the traditional banking system. The shock resulting from the burst of the housing bubble and subprime crisis created a run on the shadow banking system without the traditional safety nets in place that protect the traditional banking system. This helped fuel a credit crunch and motivated an emergency response by the government to stem this panic. Shadow banking defined. Shadow banks (or non-banks) are financial entities that borrow short-term and lend long-term but are not under traditional banking regulation and do not have access to a lender of last resort or federal deposit insurance. Shadow banks include money market mutual funds, investment banks, asset-backed commercial paper (ABCP), and repurchase (repo) agreements. Growth. The shadow banking system dramatically grew during the lead-up to the financial crisis and even briefly overtook the traditional banking system. Shadow banks had fewer regulatory requirements than traditional banks, so they had a competitive advantage when it came to costs. This allowed them to offer better returns and helped them outgrow the traditional banking system. However, they were also more vulnerable to liquidity shocks for the same reason. Many investors discounted this risk in an era when runs on financial institutions had practically become obsolete. The Financial Crisis. The shock caused by the bursting of the housing bubble and sub-prime mortgage crisis helped trigger a run on the shadow banking system. Shadow banks did not have the traditional deposit insurance or lender of last resort measures to protect them from this run. Bear Stearns was the first major investment bank that was affected by this. Short-term lenders in the ABCP and repo market started to pull funding from Bear Stearns, leading to the risk of its collapse. The government did not have the tools to directly stop this panic so people could sort things out in a more orderly manner. But they were able to take emergency action through JP Morgan, which was part of the traditional banking system, by financing JP Morgan’s acquisition of Bear Stearns and providing JP Morgan with certain guarantees against losses by Bear Stearns assets. This temporarily stopped the panic. However, a similar crisis occurred at Lehman Brothers six months later. The government did not rescue Lehman as it did with Bear Stearns, which led to its disorderly bankruptcy in mid-September 2008. This bankruptcy triggered a crisis in another part of the shadow banking system, money market mutual funds. The Reserve Primary Fund was a money market mutual fund that provided short-term funding to Lehman Brothers. It faced a crisis due to its exposure to Lehman Brothers, which caused investors to withdraw money from it rapidly. This caused contagion throughout the money market mutual fund industry and forced the government to take emergency action to stem the panic. This panic in various parts of the shadow banking system helped fuel a credit crunch in the real economy, causing many businesses to scale back through layoffs and spending cuts, which helped lead to a recession. The government was forced to take emergency action in order to stem this crisis by asking Congress for emergency powers and funding, which resulted in the Troubled Asset Relief Program (TARP). Conclusion and Final Thoughts. The shadow banking sector played a critical role in the financial crisis. Shadow banking was under the purview of fewer regulations and government protections than traditional banking. This made shadow banking highly fragile. Fewer regulations also meant it had a competitive advantage relative to traditional banks allowing it to grow in size and even surpass the traditional banking sector for a while. However, the recent financial crisis showed how vulnerable shadow banking was to a liquidity shock and forced a major government response. The financial crisis showed the risks the shadow banking system posed to the financial system as a whole. As a result, the Dodd-Frank Wall Street Reform and Consumer Protection Act created the Financial Stability Oversight Council (FSOC) and Office of Financial Research (OFR) in part to assess risks and monitor the shadow banking system. The question now is whether enough is being done and if new regulatory tools are needed. The greatest con being perpetrated as we are told about it, and we are watching it! "Too big to fail," the scheme in which many little guys and gals chip in weekly, so the few can live in thousand-dollar suits with bodies that resemble Java the Hut, on the making! Mind you; They will be bailed out again. The reason being, if the economy collapses, the banking system is defunct, and money ceases to exist. Who suffers the most, the ones that had money or the ones who didn't? Factories will still be here; petroleum will still come out of the ground; food will still be grown; electricity will still be generated, and most importantly, we would still be here. The labor force that makes everything happen would still be here! All these banks are trading and fighting; against each other. By definition, someone is going to lose. Bailout the overextended. Promote over-leveraging. How about those out over their skis have to deal with their predicaments without the aid of the Fed. The Fed is allegedly there to provide liquidity in emergencies. Is this an emergency? The emergency seems to be keeping the stock market up and moving to new highs each day. THAT'S THE EMERGENCY. Stocks will close on all-time highs year-end. It has been decided by the central bankers. These arent markets. They are arrangements supervised by central bankers and planners. This FED, like the several preceding, has NO credibility. They lie, and there's no penalty for lying. They print money to enrich primary dealers and to never realize losses to things like Uber, WeWork, etc. The parasite class has created a debt slave society that I find evil and morally repugnant. The FED merely is printing for their friends and family relatives to take as much out of the system before it goes up in smoke. In other words, the markets are filled with criminal activity that has been legalized. Ponzi schemes. And I bet not a single person will go to jail for it. Welcome to America, the land where the super-wealthy can get away with robbing the poor and middle class. Markets are dead. No downside risks because the Fed will bail you out. Soon they will be limiting the upside. The financial system is speed surfing down the slippery slope of government-controlled everything, i.e., socialism has taken over the commanding heights of the financial system. This will never end well. It's like 2008 all over again. To keep their Pyramid schemes going, they convolute, pretend, hide, cheat also. But they do it in such a dimension that there is no way back and no one can make them accountable, but the taxpayer has to bail them out again because they hold them hostage. It's time to bring those psychopaths to places where they can't do harm anymore. But they are just a symptom of a system that rewards risky, irresponsible, and fraudulent behavior and punishes honest, responsible people. The system can be called fractional reserve Ponzi, and the US Congress had the power to end this organized crime with a simple vote. Don't keep any money in a bank that you can't afford to lose. Do hold Bitcoin, silver and gold coins, and physical cash. Don't tell anyone you're holding these things. When The Sheet Hits The Fan, pretend to be as poor as everyone else while you figure out what to do and where to go. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my backup channels; I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have donated. Stay safe and healthy friends! The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more