Never in modern history has the disparity between mega-banks and regional or local banks been as wide as it was last year. 2023 was a record-breaking year for the likes of JPMorgan Chase. Meanwhile, many smaller banks collapsed and those that have survived are struggling to not suffer the same fate.
Some economists and more than a few “conspiracy theorists” have speculated that this is all by design. If the short-term goal is to consolidate banking under corporations that are working on a global scale, then the question Americans need to ask is “Why?” This is not how capitalism is supposed to work. It’s how crony capitalism works, and such circumstances are supposed to be regulated by the federal government.
But what if this is what the federal government entities — and more importantly the rising global governments — actually want to happen? We asked Jonathan Rose, co-founder of Genesis Gold Group, what he thought of this development.
“They’re definitely trying to consolidate and there’s only one reason I can see Washington DC supporting such moves,” he said. “This all comes down to the push for a Central Bank Digital Currency, a ‘Digital Dollar,’ which they can most easily implement if the banking system is operated by just four or five major players.”
According to Will Kessler from DCNF, the consolidation already started in 2023:
JP Morgan’s record profits come after a year of crisis for the sector, starting with a bank run in March at Silicon Valley Bank (SVB), which then spread to First Republic Bank and Signature Bank, prompting the Federal Deposit Insurance Corporation (FDIC) to step in and seize the banks, ultimately selling First Republic’s assets to JP Morgan.
It isn’t just the big banks that are taking actions to scoop up struggling regional banks. Actions by the Federal Reserve have favored consolidation as well. They established the bank term funding program in an effort to give smaller banks funds to stay afloat. But everything comes with a price. This “help” will mean that smaller banks will be forced to take offers from mega-banks at the first sign of trouble.
“These developments are stressing out the vast majority of our clients, especially retirees who are concerned with what will happen to their life’s savings once this really starts rolling,” Rose continued. “If bank runs start up again or the stock market takes major hits, many will watch their retirement accounts dwindle rapidly.”
Genesis Gold Group specializes in transferring or rolling over existing retirement accounts such as IRAs, 401(k) accounts, or government retirement savings into self-directed IRAs backed by physical precious metals. The “safe haven” of gold and silver have become increasingly popular and the trends will continue throughout 2024.
Reach out to Genesis Gold Group today to see how they can help you make an informed decision about your retirement accounts.