Joe Biden’s approval ratings continue to hit historic lows, so the last thing Joe Biden needs is any more bad news.
But that’s exactly what he’s getting after this earth-shattering report pointed toward one massive scandal that Democrats thought they’d wrapped up.
Because women at the FDIC just blasted an open a sex scandal that likely put every bank depositor on the hook for an alleged Democrat money laundering scheme.
The Biden regime is smashing the panic button after this earth-shattering report exposed the “party culture” inside a banking regulator responsible for keeping an eye on elite financial institutions.
These are the people supposedly safeguarding your bank deposits
A bombshell, in-depth report has the Federal Deposit Insurance Corporation (FDIC) in hot water and the scandal may have had far-reaching implications.
The FDIC along with the Federal Reserve served as the banking regulators who fell asleep at the switch, leading to massive – and unusual bailouts of Silicon Valley Bank (SVB) and Signature Bank to the tune of $22 billion earlier this year.
Those bailouts were so unusual because the FDIC (which is funded by fees from customers at all American banks) covered every dime of losses for the banks’ depositors, who unlike at most banks virtually all had more than the normal FDIC insured amount of $250,000 in their accounts.
As City Journal wrote at the time:
[U]nlike at most banks, most of SVB’s depositors had more than $250,000 held at the bank. That’s above the FDIC’s normal insurance guarantee in case of bank failure. As word traveled through Silicon Valley that SVB was in distress, these large depositors began to yank their money—so quickly that, last Friday, regulators seized the bank. On Sunday night, regulators seized another medium-large bank, Signature, with a similar profile: large uninsured deposits, a tech-heavy customer base. In an effort to prevent runs on other mid-size banks, the FDIC said Sunday night that it would retroactively protect all depositors at the two failed banks, not just smaller, insured, depositors. The Federal Reserve and the Treasury Department also said that banks facing similar situations—having to sell Treasury securities to meet deposits—could instead borrow.
And now Americans are learning just what may have gone wrong.
The Wall Street Journal recently published an in-depth report that fully exposed the “party culture” rife with sexual assault complaints that has been fostered within the Federal Deposit Insurance Corporation (FDIC).
As a matter of fact, The WSJ’s report – entitled “Strip Clubs, Lewd Photos and a Boozy Hotel: The Toxic Atmosphere at Bank Regulator FDIC” – didn’t just expose the existence of the FDIC’s “party culture,” they came with receipts of various incidents that have occurred within the taxpayer-funded government agency, and the findings are stomach-churning.
“A male Federal Deposit Insurance Corp. supervisor in San Francisco invited employees to a strip club,” The Wall Street Journal reported of one incident that illustrated the FDIC’s culture.
The report added that a “supervisor in Denver had sex with his employee, told other employees about it and pressed her to drink whiskey during work.”
“Senior bank examiners texted female employees photos of their penises,” the report continued. “The agency tolerated a heavy drinking culture.”
The Wall Street Journal pointed out that all of these incidents and the FDIC’s “party culture” in general was largely made possible due to an eleven-story, 350-room hotel the FDIC built with taxpayer money outside of Washington, D.C., under the guise of having a place “where out-of-town employees stay when attending training.”
As the report noted, the hotel served as “a party hub, where people have vomited in the elevator and urinated off the roof after nights of heavy drinking.”
So basically, while working-class American families continue to struggle to keep a roof over their heads and food on the table due to skyrocketing inflation caused by incompetent government, unelected bureaucrats are using their tax dollars to build themselves what amounts to a college dorm in which they can engage in all sorts of debauchery on taxpayers’ dime.
“The FDIC spent more than $100 million in the 1980s to build a training complex in Arlington, Va., that included a hotel for agency staff with more than 350 rooms, an outdoor pool and a rooftop patio,” The Wall Street Journal reported. “The FDIC said the hotel and training complex save the agency money.”
“An accepted part of the culture”
It’s difficult to understand how the unelected bureaucrats entrusted with running the government agency charged with safeguarding Americans’ bank deposits in the event of a bank collapse could possibly defend their inn of debauchery with a straight face by claiming it saves the agency tax dollars.
But that’s simply another example of the contempt they have for the working class – they believe you’re stupid and will take their lies at face value, even when contradicted by evidence.
To make matters worse, the Wall Street Journal report also indicated that this isn’t the first time the FDIC’s “party culture” has been made public.
WSJ noted that the FDIC’s culture was highlighted on an Instagram post in 2021 that featured the caption, “If you haven’t puked off the roof, were you ever really a [Financial Institution Specialist]?”
Furthermore, former FDIC examiner-in-training Lauren Lemmer told The Journal that she “quit her job in 2013 after three years in which she said she was denied opportunities to advance, followed back to her Dallas hotel room by a male colleague during training, invited to a strip club in Seattle by other bank examiners and sent an unsolicited naked photo by a colleague.”
“It was just an accepted part of the culture,” Lemmer said.
The U.S. government and the elite power brokers and politicians in charge of America’s financial system are out-of-control.
That much is clear.
What’s more clouded is how powerful elites seemingly use “party culture” both to cause and cover up even more grievous abuses of power.
City Journal asked some very important, if self-evident, questions earlier this year amid the collapse and subsequent bailouts of SVB and Signature Bank – collapses that came on the heels of the the implosion of top Democrat donor Sam Bankman-Fried’s crypto ponzi scheme.
“The broader problem, though, is that just as the government had created that brittle 2008 financial industry in the first place, with the too-big-to-fail regime that had begun in 1984, the government also created today’s self-satisfied tech industry. How did SVB’s deposits triple in less than half a decade? Why did Signature Bank start dabbling in crypto? Why on earth did anyone ever trust Sam Bankman-Fried to do anything?” City Journal wrote back in March.
The fact is, Democrats may have thought they put this all behind them when Bankman-Fried was convicted earlier this month for the crypto-ponzi scheme that looked to many like a Deep State money laundering scheme.
Not so long ago, Bankman-Fried was a darling of the far Left who wrote big checks for Democrat candidates and spouted all the fashionable leftist narratives.
Now the conventional wisdom says his party boy ways led to the collapse of the FTX cryptocurrency exchange.
Conspiracy types believe Bankman-Fried’s debaucherous behavior was used to conceal the real purpose of FTX – duping Ukraine-supporting cryptocurrency owners into washing campaign cash for Democrats ahead of the 2022 election.
Part of that theory suggests Biden leveraged massive transfers of US taxpayer dollars to Ukrainian President Volodymyr Zelenskyy to get Zelenskyy to set up a website so the same American leftists furiously putting Ukrainian flags in their social media profiles could make crypto donations to help Ukraine.
FTX would then allegedly pocket the transaction fees and pass along some to the big guy.
Whether or not there’s any truth to that, some things are certain.
Bankman-Fried definitely announced an FTX’s partnership with the Ukrainian government in early 2022 for crypto donations.
— SBF (@SBF_FTX) March 8, 2022
And Bankman-Fried became one of the Democrat Party’s biggest donors, behind only George Soros in putting tens of millions behind Democrat candidates during the 2022 Midterm elections.
24/7 Politics will keep you up-to-date on any developments to this ongoing story.