Is Your Bank Safe?

15 03 2023

  By Timothy D. Naegele[1]

Having purchased seven failing financial institutions from the American government[2], I can say categorically that no one knows for certain whether they are safe or not until they either survive or collapse.  Perhaps the classic example has been Silicon Valley Bank, where reportedly there were few at the top who had any knowledge of banking.[3]

That is stunning, to say the least.  Presumably even the bank’s most sophisticated depositors and customers had no idea how inept its management was.  But the greatest example today may be Wells Fargo Bank, which was once one of America’s and the world’s true icons in banking.[4]

Richard Kovacevich took over, who had no experience in banking; and he created a monster.  Yet, he departed before everything “hit the fan,” and others “took the rap” for his misdeeds.  To escape scot-free is astonishing, which Bernie Madoff and other “Ponzi scheme” creators could not achieve.[5]

We are still in the early stages of this financial reckoning; and the precise depth of the problems will not be known for a long time ahead—perhaps decades.  One thing is certain: no one should take any chances with their monies.  And yes, after the devastating and still-lingering effects of China’s Covid pandemic, many Americans have been hurt already, with much more to come.  Those at the bottom of the economic totem pole have been hurt in ways that are unfathomable.[6]

American companies continue to close, or lay off workers.[7]  Where the economic “merry-go-round” stops is anyone’s guess.  Are we on the cusp of both the “Great Depression II” and World War III, with unimaginable chaos ahead?[8]  I am not a seer; and even the best political, economic and military minds globally can only guess.  But it is best not to gamble in uncertain times like these, when our skills and faith are truly tested.[9]

Lastly, who will pay for this debacle in the United States?  Its taxpayers, of course.  There is no “free ride,” and someone always pays for the misdeeds of others.  Whether it is war, economic chaos or other calamities, the “piper” must be paid; and what we are experiencing today is no exception.  Will Americans and others globally rise up, and say “enough is enough,” as they did in Berlin when freedom had one of its greatest moments in human history?[10]


© 2023, Timothy D. Naegele


[1]  Timothy D. Naegele was counsel to the United States Senate’s Committee on Banking, Housing, and Urban Affairs, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass).  See, e.g., Timothy D. Naegele Resume-21-8-6  and   He has an undergraduate degree in economics from the University of California, Los Angeles (UCLA), as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He served as a Captain in the U.S. Army during the Vietnam War, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal (see, e.g.,  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years (see, e.g., and, and studied photography with Ansel Adams.  He can be contacted directly at

[2]  See, e.g., (“(1) Southern California Savings by The Securities Groups (1982); (2) Fidelity Federal Savings and Loan of Baltimore (1984), (3) American Heritage of Illinois (1984), (4) Fidelity Savings & Loan of Martins Ferry, Ohio (1985), (5) Brighton Federal of Colorado (1985), and (6) Century Savings of Kansas (1985) by Household Bank, F.S.B.; and (7) United Bank of San Francisco by Hibernia Bancshares Corporation (1986)”)

[3]  See (“Only ONE member of failed SVB’s board had a career in investment banking – and the rest were Obama, Clinton mega-donors who ‘grieved’ when Trump won including one who went to Shinto shrine ‘to pray'”); see also (“Woke Silicon Valley Bank donated over $73 MILLION to Black Lives Matter-related social justice groups before it collapsed – while failed Signature Bank gave $850,000”) and (“Signature Bank boss hosted a company seminar on gender-neutral pronouns ‘ze’ and ‘hir’ five months before becoming the third largest bank failure in US history”)

[4]  See (“Wells Fargo: An American Banking Nightmare”)

[5]  See supra n.4.

[6]  See, e.g., (“Homelessness In America”)

[7]  See (“Meta to Lay Off Another 10,000 Workers”)

[8]  See, e.g. (“Is The United States On The Cusp Of The Great Depression II?”)

[9]  See (“What And Where Is God?”)

[10]  I was in Berlin when the Iron Curtain fell and the Soviet Union collapsed.  Soviet military personnel were selling their uniforms and plumbing fixtures from their barracks, and going back to “tent cities” in the USSR.  I will never forget the jubilation that day.

See, e.g., (“The Death Of Putin And Russia: The Final Chapter Of The Cold War”)



7 responses

15 03 2023
H. Craig Bradley

The SVB debacle sure reminds me of former bank, Washington Mutual. Remember the bank ads for opening a free checking account in 2007: ” Wa-hoo, WA-Mu !” A year later, they went into FDIC receivership. We never fully recovered from that one and it leaves scars to this day.

This always happens at the end of a major credit binge. The excesses now must be wrung-out of the financial system one way or the other. Until the process self-cleans, it will be very hard to realize any capital gains from investments bought in the last few years when $ Trillions of stimulus were pumped into the economy and markets. Lots of capital losses to go around in the next couple of years, at least. The process is only (barely) one year old and just starting, yet people are screaming like a stuck pig.

There is no way the Democrats can escape blame for all this financial mayhem. The smartest thing Republicans can do is…. as little as possible ( Just stand aside and let the financial train wreck proceed). Exhibit public outrage. Blame the Democrats at every possible opportunity and suggest possible legislative remedies which would, of course, be unacceptable to Senate Majority Leader Chuck Schumer and President Biden. Telegraph the Democrats want no bi-partisan “solutions”.

Play the role of the adult in the room and deflect blame upon the prior Democratic Congress. Vilify the Democrats at every turn for the next 2 years. Rip them up and turn the public against them. Use their own divide and conquer tactics against the Democratic leadership, as they did for years. Beat them up and teach them a hard lesson ! Take no prisoners.

Liked by 1 person

15 03 2023
Timothy D. Naegele

Thank you, Craig, for your passionate comments.

I agree completely. 😊


16 03 2023
Timothy D. Naegele

No One Should Be Surprised About This

See (“Bank of America rakes in $15 BILLION as panicked customers ditch smaller lenders for ‘too big to fail’ firms in wake of SVB crisis – with ‘goliaths’ like JP Morgan also ‘winning’, analysts say”)


17 03 2023
Timothy D. Naegele

Much More To Come

See, e.g., (“First Republic shares plunge 20% as $30B rescue package fails to calm worries of widening banking crisis: Credit Suisse also drops and SVB’s parent company files for bankruptcy”)

Are we in a dystopian future?

See also (“What Really Caused The Banking Crisis”) and (“Emergency loans to banks spike to highest-ever levels as they borrow $153B from Fed – surging 3,000% from a week earlier and smashing the record set during 2008 crisis”)


17 03 2023
Timothy D. Naegele

Woke depositors will be protected. Otherwise, not. An enormous scandal.

“Treasury Secretary Yellen says not all uninsured deposits will be protected in future bank failures”


21 03 2023
Timothy D. Naegele

Corruption At SVB

See (“Silicon Valley Bank chief risk officer left company last year with over $7.1million after she oversaw a bond-buying spree that left it vulnerable to frenzied bank run that led to collapse”)


24 03 2023
Timothy D. Naegele

The Next Bank To Fail?

See (“Dow plunges more than 200 points amid panic that Deutsche Bank could be next to go after shares in European beast tumbled 14%”)


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