Ripped From The Headlines, March 27, 2023
#CFTC Comes For #Binance, Government Pays Bank To Buy #SVB Assets, Job Contingencies On Home Purchases - Read, Share, & Subscribe - SherlocExposes.com
We Are The Watchmen On The Wall
Please support our sponsor, Satellite Phone Store!
Next-level preparation is necessary...
The potential for blackouts, cell phone service outages… it’s real.
How will you communicate?
Objects being shot down, train derailments, bank runs, infrastructure issues…
How long could people be without communication? What could be lost?
Satellite Phone Store has phones, radios, alternative power, and much more.
Visit them today - YOUR FUTURE DEPENDS ON IT.
(EDITOR’S NOTE: Orange-linked text is clickable for additional information.)
The world's biggest crypto exchange Binance and its CEO and founder Changpeng Zhao have been sued by the Commodity Futures Trading Commission (CFTC) for operating an ‘illegal’ exchange and a ‘sham’ compliance program, the U.S. regulator said on Monday.
Binance, Zhao, and its former top compliance executive knowingly disregarded U.S. commodities law ‘while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit,’ the CFTC said.
From at least July 2019 to the present, Binance ‘offered and executed commodity derivatives transactions on behalf of U.S. persons,’ in violation of U.S. laws, the CFTC said in its complaint.
Binance, which dominates the global digital asset sector, did not immediately respond to requests for comment.
‘For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance,’ CFTC Chairman Rostin Behnam said in a statement. ‘This should be a warning to anyone in the digital asset world that the CFTC will not tolerate willful avoidance of U.S. law.’
The CFTC move comes amid a wider crackdown on crypto companies by U.S. authorities.
The winning bidder in the government’s auction of Silicon Valley Bank’s main assets received several concessions to make the deal happen.
First Citizens BancShares is acquiring $72 billion in SVB assets at a discount of $16.5 billion, or 23%, according to a Sunday release from the Federal Deposit Insurance Corporation.
But even after the deal closes, the FDIC remains on the hook to dispose of about $90 billion in assets which are being kept in receivership.
And the FDIC agreed to a five-year loss-sharing deal on commercial loans First Citizens is taking over, as well as a $70 billion credit line for ‘contingent liquidity purposes,’ the North Carolina-based bank said Monday.
The FDIC is also giving First Citizens a five-year, $35 billion loan to help finance the deal; in exchange it is getting equity rights in the bank that could be worth up to $500 million.
All told, the SVB failure will cost the FDIC’s Deposit Insurance Fund about $20 billion, the agency said. That makes the SVB failure the costliest in history of the deposit insurance fund, which began operating in 1934. The cost will be borne by higher fees on American banks that enjoy FDIC protection.
More home buyers are putting an unusual escape clause into their contracts: If they lose their job before closing, they can back out of the deal.
Known as an employment contingency, these provisions appeal to tech and finance workers rattled by recent waves of layoffs, real-estate agents and lawyers said.
Fears over a recession and the fallout in the tech and banking sectors following the failure of Silicon Valley Bank, may only increase their popularity this home-buying season, they said. Like any contingency, this clause will weaken your offer in some competitive markets even if it helps settle your fears.
‘Buyers are feeling anxious and want added protection,’ said Michael Romer, a real estate lawyer in New York City. Employment contingencies were popular after the 2008 financial crisis but became less common in the past decade, he said.
Mr. Romer has a client who works in the tech industry and requested an employment contingency as part of his offer to buy a $1 million co-op. If he loses his job between contract signing and closing, he will be able to back out of the deal with nominal penalties and receive a full refund of his 10% deposit. Without such a contingency, the buyer would forfeit his entire six-figure contract deposit should he need to back out of the deal, Mr. Romer said.”
Monday Madness, Ripped From The Headlines. Things To Ponder:
“Sherloc Wins Again - Film At 11!”
We rarely toot our own horn (we have amazing subscribers who do that for us), but in the case of Binance & the #CFTC, there are important things to cover:
The #CFTC
In our feature article, “When Liars Conspire,” which you can read by Clicking Here, we connected the dots on the collusion between multiple agencies - including the SEC and the CFTC - to control cryptocurrency and to pick winners and losers in the space:
The collusion knows no boundaries…
Then, there’s the role of Congress:
Congress has been working on this from multiple angles to support the plan. From the Wall Street Journal:
Did you catch that?
“In practical terms, for federal agencies such as the CFTC, Securities and Exchange Commission, and Federal Reserve, adding crypto to their remit would bring bigger budgets, greater influence and more job opportunities for officials who leave public service. For members of the congressional committees that oversee such regulators, a new industry in their sandbox would create another stream of lobbyists and campaign donations.”
And this?
“Washington has introduced a flurry of bills in recent months to draw jurisdictional lines. Sens. Cynthia Lummis (R., Wyo.) and Kirsten Gillibrand (D., N.Y.) unveiled a proposal in June that would create exemptions for cryptocurrencies in securities laws, banking statutes and tax code. In July, leaders of the House Financial Services Committee said they were working on a bill to grant the Federal Reserve a greater role in regulating some stablecoins, crypto tokens pegged against the dollar and other official currencies.”
Do you see how they are playing you?
Then, there’s Binance…
Back on December 14th, 2022, this is what we wrote in response to the initial run on Binance and their system being stable:
Click Here to read the full edition of Ripped From The Headlines.
Then, we wrote this in response to an article about Binance bleeding out on January 14, 2023:
You can read that edition of Ripped From The Headlines by Clicking Here.
We also broke down the entire mess surrounding centralized cryptocurrency exchanges with Carl Jackson Bank In November:
(EDITOR’s NOTE: At the 7:50 mark of this interview, co-publisher, RC Williams, walks through the issues with the FDIC, and what would happen in a bank stress event, very similar to what we’re seeing right now)
Busy day, right?
Here’s the question to ask yourself: Was Binance the perfect patsy to stir fear in crypto to give the government an excuse for more control, right when banks are on the brink of failure?
Know. Your. Foe.
“No One Wanted To Buy This Laptop box With Bricks In It, So We Had To Pay Them To Do It!”
Nothing against bricks, by the way…
But the government having to step in and basically bank First Bancshares to buy SOME of the assets of Silicon Valley Bank tells you a lot, doesn’t it?
It’s so bad, that the government HAD TO LOAN FIRST BANCSHARES MONEY TO BUY A TOXIC ASSET THEY CAN’T SELL.
Let that sink in…
And understand that this won’t be the last time that you have to try and make sense of this foolishness…
There are plenty of contagions left in the system to try and rob you of your future and your wealth…
Brace For Impact.
“I Only Want To Buy This… If I Can Get Out Of Buying This…”
What’s happening with these home contingency deals is more of a reckoning moment for the US eCONomy more than anything else…
If things were really good and healthy, why would you need contingencies for getting laid off or not?
Oh, right… IT’S BECAUSE THINGS AIN’T GOOD.
The government of the UNITED STATES seems to have no clue what they’re doing…
Except, we think they know EXACTLY what they’re doing…
There’s a destabilization of the nation in progress…
Notice how service keeps getting worse? How things look dirty? How big cities look and feel like sewers?
Yeah, that’s by design.
You have to understand how your enemy works in order to stop them…
And that requires you to think a bit more strategically.
Follow the money.
What does this mean?
Things continue to deteriorate at a more rapid pace economically. Every warning bell is ringing, but many aren’t listening.
Things are actually worse than you were thinking.
This is one of the big reasons we chose to do Ripped From The Headlines… so you can be out in front of what’s coming.
Note the perfect storm of issues, combined with ongoing infrastructure challenges, supply shortages, high prices, and “climate activism” looking to kill natural gas.
None of this is good.
Why should I care?
This stuff is accelerating, fast, and you stand to lose a lot, quickly.
We’re noticing a rapid spike in scams of all kinds. Be vigilant.
You should REALLY care.
They are after you... and everything you have.
What should I do?
Think about the basics that people need, and look at those things as potential avenues to protect yourself.
Do you know why Berkshire Hathaway’s stock is so expensive?
They touch 90% of your life every day, and you don’t even realize it.
You should also tell as many people as you can about what’s happening. Don’t leave people behind, while we still have a window to help them.
A quick way to do that: Share this newsletter… heck, take from it, and do your own. We give you permission…
Take the time to learn more about Parallel Economies, and find alternatives to the things you use today… food, money, and transportation.
GET MOVING ASAP.
James Wesley, Rawles, publisher of SurvivalBlog.com has put together a “bookshelf” list of key things you should have. CLICK HERE to access the list.
Plus a recap of the 50 things you should have handy to barter.
Share this email with everyone you know. Sign up for a free or paid subscription. Paid members will receive our in-depth solutions.
Ripped From The Headlines is your daily digest of what’s happening in the world. We help you to understand what it means, why you should care, and what you should do.
Have a tip on a story, case, or issue that needs to be covered? Email us: asksherloc@protonmail.com. Confidentially assured.