Jerry Carl Grills Janet Yellen About Bail-Out Policies

Mr. Carl, thank you Secretary Yellen and Director Young, thank you for being here and being able to speak in front of the committee. I'd like to make a brief statement here, although I haven't heard any member of the Republican Party say anything about cutting Medicare and entitlements here, so I think it's a falsehood that's being put forward and twisted for political purposes with that being said uh secretary regarding the

bail

out of Silicon Valley Bank and Signature Bank, I understood. I want to ask you a couple. of questions I spoke with local bankers, I try to stay on the same page with them and they tell me that the problem of this bank being upside down for lack of better words should have been caught by the Board review in the 12 31 call report.

Was it marked? Well, I am not responsible for the supervision of these banks, so that is a question that should be directed to the appropriate person, but what about the government that oversees these committees? Did anyone detect it? Has anyone checked it well? If this is not so. Treasury's job is to oversee the regulatory agencies, whether it's the Federal Reserve or the FDIC, okay, they have oversight authority here, which one is yours? I watched some videos about you last night and read a lot, so, very impressive, thank you. You, I saw your question from Senator Langford last week, I think it was and again it seemed like the administration was putting itself in a position to represent the winners and losers in our business community and that bothers me.

I have been in business for myself for almost 40 years in various businesses and the biggest problem I always had, especially in the healthcare field, was the government itself getting in the way, so I am always very sensitive to that. I developed my opinion on this from a statement you made saying that the board would have to have a supermajority of votes to cover one hundred percent of investors and other banks in the future, like they are doing in Silicon Valley Bank. Well, look, let me be clear about what I said. Well, in the case of the two banks that were put into resolution, Silicon Valley Bank at Signature Bank, we invoked a so-called systemic risk exception and we did so because we determined, and when I say, I mean supermajorities of the FDIC, actually , The vote was unanimous, the FDIC board, the Federal Reserve board and I, after consulting with the chairman, felt that failure to protect uninsured depositors would create contagion and that there was a risk of runs on many banks that They would not only undermine the security of depositors, but also compromise the ability of the American banking system to meet the credit needs of our country's households and businesses.

That's why we took this step. The Federal Reserve also took a step to create a mechanism that would improve access to liquidity for banks facing deposits. run I think our tools worked and what I have said is that these are tools that we could use again for an institution of any size if we judged that their failure would represent a lack of respect. I'm running out of time and I have There are six more questions here, I know I won't answer them, so I apologize for this, but you know my question is simple. I have little time left.

I'm glad to see you brought in the community banks and the small ones. Banks was involved in the conversation because they really felt like they were being handed over to the Wolves for lack of better terms and the big Banks were taking over the conversation so the little van and I appreciate you doing that and that was something I got out of it. . that conversation last night, but let me ask you a question whether a small Rural Community Bank in Alabama that invests in their Rich Coal Mine communities or in our investments in oil drilling in the Gulf of Mexico or not adheres to ESG

policies

of the left that are being promoted, do you think they would also receive a ransom of 100?

This really has nothing to do with the particular business of the bank in question, it is really a judgment on whether the failure of the bank and the losses imposed on uninsured depositors threaten a contagion that could undermine the banking system as a whole. Thank Mrs. I do not agree with you. I think many of the voters also disagree with you, but thank you for your time. and come back Mr. Cisco Monument thank you thank you Mr. President and Secretary Allen thank you for being here and young director, nice to meet you both. I appreciate your time and thank you for coming before the committee to testify today at the state. of our economy is one of the biggest challenges we face here in Congress and everywhere I go, especially in District Six, which I know well.

I am concerned about rampant inflation and unchecked government spending.