As the number of U.S. bank failures continues to rise, the failure of Atlanta-based Silverton Bank stands out for several reasons. First, with “assets” with a nominal total of more than $4 billion, it was one of the largest failures in the U.S.
Silverton is also different from other U.S. financial institutions in that it is a bank for bankers – having virtually no retail banking operations. Finally, unlike other bank failures, the FDIC couldn't find any buyer to take over these assets, even under the very favorable terms which the FDIC sets for take-overs of failed banks.
The obvious issue is this: with U.S. banks supposedly “stress-tested&r... and with Wall Street Liars (and media talking-heads) claiming that U.S. banks are once again profitable, one would think there would be many buyers lining up to take over Silverton Bank – in anticipation of a surge in business as the U.S. banking sector “recovers”.
Yet, after a full month, the FDIC has given up looking for a buyer, and instead will simply wind-down the operations of this failed institution.
Naturally, you won't hear anyone from the U.S. propaganda-machine questioning this obvious contradiction between what is being said about the U.S. banking sector, and what is really happening with these institutions. They are all too busy trumpeting the fraudulent jobs report, which claims that despite there being 2.75 MILLION lay-offs in May, and despite the unemployment rate spiking by ½ % in a single month (to a 26-year-high) that U.S. job losses in May were 40% lower.
Who wants to report facts, and real “news”, when you can simply make up fantasy-numbers and get the brain-dead market-lemmings to believe anything that you fabricate?
Meanwhile, rising U.S. interest rates eat into banking profit-margins. The rate on the 10-year U.S. Treasury, generally considered a bench-mark indicator, has risen by 50% this year – and is headed rapidly toward 4%.
This would seem to be the real reason that there were no buyers for Silverton. Those inside the U.S. banking industry expect U.S. interest rates to continue rising. Those rising interest rates will increase the delinquency rates of U.S. loans (already at all-time records) and ultimately defaults and foreclosures.
With the outlook over the short- and medium-term for the U.S. financial sector extremely gloomy, no one is foolish enough to buy a bankers' bank.
Given today's outrageously fictional monthly job-loss report, the U.S. propaganda machine will now proclaim next week that the “U.S. recovery” has begun. As you hear an endless stream of such propaganda in the days ahead, don't forget Silverton Bank.
As the old cliché goes: actions speak louder than words.