• 23:19 - 28:10
Ellen Brown | Bankster Thugs, The Web of Debt, & The Public Banking Solution
Citigroup Budget Rider, FDIC Limits, and Derivative Seniority
A specific 2015 budget rider written by Citigroup is identified as a major risk factor that allows banks to use insured deposits for risky derivative gambling. Brown explains that under the Bankruptcy Reform Act of 2005, derivative claimants have seniority over depositors and the FDIC in the event of a bank failure. She points out that the FDIC fund holds only $46 billion, which is insufficient to cover trillions in potential derivative losses or the $4.5 trillion in total U.S. deposits.