The Bank Run Which Shall Not be Named: 9/18/08

On September 18th, 2008, a very interesting thing happened in America. No one says much about it, the mainstream media won't cover it, and you certainly will not hear any Federal Reserve representative openly admit that the event even went down. But that's why you read Jr Deputy, right? Read it and weep.

If you pay attention, about 2 minutes and 20 seconds into the clip, Representative Kanjorski (D-PA) claims that over a one to two hour period, a $550 billion bank run scared the living daylights out of the banks, the Fed, and the Treasury. Kanjorski's statement (from the video above) unravels thusly:

On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 billion dollars in a matter of an hour or two.

Money was being removed electronically.

The treasury tried to help with $150 Billion.

But could not stem the tide.

It was an electronic run on the banks

The treasury intervened but had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours, $5.5 Trillion would have been drawn out of the money market system of the United States and would have collapsed within 24 hours the world economy.
Why again is no one talking about this? A Google search reveals little.

The very next day Bernaulson appeared before Congress, revealing their "comprehensive" rescue plan to lawmakers after what must have been a long and fearful restless evening for the puppets of the largest financial collapse in American history (Depression be damned, there is financial rape involved in this crisis, kids):

In an unprecedented series of actions from the U.S. Treasury Department, the U.S. Federal Reserve and the U.S. Securities and Exchange Commission over the last 24 hours, the administration has announced plans to purchase illiquid assets from financial institutions. It also promised to buy up Fannie Mae and Freddie Mac Debt, it will launch an initiative to lend to banks for the purchase of commercial paper, created a fund geared at insuring money market mutual funds and banned short selling on 799 financial stocks.

After a meeting with Congressional leaders, and Fed Chairman Ben Bernanke on Thursday night, Treasury Secretary Henry Paulson said he is working on legislation that would allow the removal of illiquid assets from the balance sheets of financial institutions. The Treasury Secretary pledged to continue working closely with Congress on a proposal, but warned that that systemic risks in markets need to be dealt with.

The U.S. Securities and Exchange Commission enforced a temporary ban Friday on the short selling of 799 financial stocks in an effort to calm investor fear and markets in general. The ban is in place until 11:59 p.m. EDT on Oct. 2, and can be extended 10 days or beyond if deemed necessary. The move follows similar actions in the UK late Thursday evening. Meanwhile, Australia said it plans to institute a similar rule on Monday.

What did these people know that they are not telling?

And why oh why is no one calling for their heads?

Feeling dicked yet? Because you certainly should be.

So who pulled the $550 billion? And from where?

And why will this never make its way to the front page of the newspapers?

“Government assistance should be given with the greatest of reluctance and only when the stability of the financial system, and, consequently, the health of the broader economy, is at risk,” said Ben Bernanke in prepared remarks to Congress just days after the unprecedented bank run.

They got their money. And the shitstorm continues to rain down; the question now becomes what did these men in charge of our fiscal stability know and why would they then proceed as they did?

The only logical answer? They knew what was coming. And that's exactly how they planned for it to work out.

Let me tell you something, Dr. Bernanke, and I mean this in the most respectful way possible - you, sir, are the scum of the Earth. That you and Paulson would allow this to occur and turn around and fleece the American people out of hundreds of billions of dollars leads me to believe that you all have but one agenda at heart; advancing your own bullshit collapse of the free market as we know it.

In case you have not realized, the free market doesn't take kindly to meddling. But you already know that.

And you kids wonder why I'm keeping my money under the mattress and stocking up on soldiers and guns. Pfft. Apocalypse will be a blast. Trust me.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Kelkel said...

I think I vaguely remember hearing about this, like as a snippet of intersting news on NPR. Kind of like "and also today, Mrs. Smith's cat got stuck up a tree, and interestingly enough, there was a miniature bank run! On to traffic."

At the time, I didn't think it was a big deal because they had handled it quickly, and it was really only some people involved in the mass hysteria, not all of us.

Remember as well, when Depression bank-runs happened, we didn't have FDIC, which we do now, AND which is up by 150%... right around the time of this bank run. I will never care enough to argue with you, but I feel fairly taken care of by my government/the mysterious fed.

Junior said...


I genuinely care about you because you are one of the future CPAs that will be left holding the burden of this corruption when all is said and done... you don't have to care but you DO realize that the bean counters will be left to shoulder the bulk of the blame when all is said and done, right?

You are always welcome to argue with me =)

But THIS revelation scares the living daylights out of me. The Fed and the government will sell you kids off at the drop of a hat.

Wake up, m'dear. The world you know is gone. Please don't let these unethical sonsofbitches leave the blame at the doorstep of the accountants who couldn't possibly know what sort of diabolical business they were engineering behind the scenes...

Kady said...

I saw this on Paul's site as well, I had to post on it too. Srsly, I need a break from this shit.

Junior said...

I'm sorry, sweetheart, I don't make the news, I just report it. :(

Anonymous said...

This puts the suspension of McCain's campaign on Sept 24 into a different light. Buffet even called the event an "economic Pearl Harbor" during the same week.

Sen. Graham on Fox News during the same time period.

"We may not have but a few days left to protect American savings and financial institutions from collapse, and after the two days you’ve seen here in Congress of nothing but posturing, we’re running out of time.

Obama had to know, Schumer had to know but why were their responses so different if we had a 550 billion dollar drawdown only a week earlier.

Chuck Shumer's reaction:

This makes no sense. We can't track the first TARP money, Geitner can't disclose the terms of the second installment. We are being pressed again for another 800 billion. There is a rush to do massive spending and we are only getting the information on the 550 billion (which would have been more had it not been stopped) now?

this was no ordinary bank run. To put it into context, the run on IndyMac (that was credited to Schumer in their SEC filings) was 1.7 billion over 11 days. This was 550 billion and growing over 2 hours. No comparison. I too hope that the Fed and the gov as a whole are protecting our interest, but I would like for them to be a bit more forthcoming with this type of "attack".

Michael R.

Anonymous said...

President Kennedy speech.

Who can drawdown 550 billion in 2 hours?

Who could crash the British Pound in 1992?

Who could have destabilized the Malasian Market and labeled as an "economic war criminal" by that government in 1997?

Who could have diverted 100 billion out of Russia and collapsed its currency forcing a default to the IMF?

From Davos: the call for state owned banks from the man himself.

When the same money that can do what is above is used to get specific people into office, we have a problem. The timing of all of this, just before a presidential election that saw two groups of politicians react very differently to the same information is something that at least needs to be questioned.

We need to get the word out. That is not our right, it is our duty. Kennedy said it himself in his own speech that it is the press whose job it is to inform and educate the public but it has turned into nothing more than a propaganda arm of something...and whatever that something is, it needs to be put out to the public and it needs to be held to account.

Michael R

David said...

Thanks for the back pointer. I had missed this. Whoever could draw down a potential $2T over 4 hours -- and change the policy of U.S. government -- wanted to cash in their chips and step away from the table. Thanks for driving my employer out of business, guys!

Anonymous said...

Rare, clear and detailed account of this event. In response to anonymous' letter below, the book:

MetroplexJim said...

The video of Paulson admitting under oath before Congress that the "electronic bank run" 1) did happen and 2) was the immediate cause of TARP still lives:

Note how Barney Frank cuts off Paulson and Bernanke before they can answer Kanjorski's question!