Posted on 11/26/2022 7:15:48 AM PST by DoodleBob
NOTE WELL.........Tens of billions of U.S. dollars have been funneled to Ukraine, laundered through FTX; the laundered money now in the form of FTX cryptocurrency was funneled back to Dems..........
Biden was a fully engaged participant with Zelensky.
The latter setting the price......the former blithely sending billions Zelensky asked for.
Questions are being asked
<><> how FTX got federal approval to buy its stake in the Farmington mini bank.
<><>it’s hard to believe regulators would have knowingly allowed the crypto firm to do so.
Is the wigged mad Maxine, FTX campaign funds taker, Senate banking committee chair.....in on it?
***********************************************
Here’s where it gets interesting. The bank, which had posted net income routinely with small quarterly losses over the years, started cranking out quarterly losses of $22k, $44k, then losses shot up to $558k, $576k, $1,085k, and finally a whopping $2.6MM loss in the most recent quarter. Meanwhile, there are equity injections commingled with the losses.
Pretty hefty losses.
<><>who was borrowing money that created the losses?
<><>were the losses in the bank’s securities trading account??
We demand a full accounting.
Contact Congress
U.S. House of Representatives:
* Telephone: 202-225-3121
* Website: http://www.house.gov/
U.S. Senate:
* Telephone: 202-224-3121
* Website: http://www.senate.gov/
I'd like to meet a few of these potential investors at a poker table
laundromat...
What is the name of the fed regulator that signed off on the deal?
Quarterly salary and benefits was about $80k prior to 2020.
In the quarter ending June 30, 2022, that expense jumped to $1.2MM. And there was an unexplained $1.6MM in "Additional non interest expense." THAT is what drove that quarter's loss of $2.6MM.
Something is rotten in Farmington.
That is shady. There’s no way this went undetected.
I declare “Shenanigans”.
Banks that small don’t even have an official IT person—it’s farmed out to some local computer store.
I’m getting an “Ozark” feeling from this saga.
The Federal Reserve is the bank’s primary Federal regulator. The state regulator is the Washington Department of Financial Institutions. Both agencies would have had to approve the transaction. Neither agency has any enforcement action against the bank as of 11/23/22. Given the small size of the bank, there is no requirement for SEC filings or audited financial statements with an audit firm’s unqualified opinion.
The bank trademarked the name Moonstone Bank on March 1, 2022 and changed to that brand three days later. Come March 7, Alameda invested $11.5 million into the newly-named bank.
Chalopin explained that the name was inspired by the startup bank’s two asset classes: “playing on ‘to the moon’ and ‘stone’ for our target industries of digital assets and hemp/cannabis related business.”
The OCC or the FDIC would have been the likely regulator options.
Until something suspect happens or the money is known to be illegally acquired, I’m not sure what restrictions there are on cash infusions from investors.
I will say I am blown away with any bank under the multi-billions of dollars in assets having a person with a “chief digital officer” title.
Correction: at the time the current group acquired the bank, the primary Federal regulator was the FDIC. The bank later switched to the Federal Reserve as primary regulator. For any bank to switch Federal regulators, it must be rated satisfactory in the areas of safety and soundness, consumer compliance, the Community Reinvestment Act, and IT. So the bank was in a financially sound and compliant position as of the time when it switched Federal regulators. However, since the bank was acquired by a firm that would become a bank holding company, the change in control would be subject to three agencies: the Federal Reserve, the FDIC, and the State regulator.
This seems important. So FTX bank could access the Federal Reserve discount window, potentially be a primary dealer, be able to directly access QE and maybe bail-out money, without worrying about Fed.gov?
The bank had a state charter, so the OCC would not be involved. It was the FDIC, although the new ownership group switched Federal regulator from the FDIC to the Federal Reserve.
“Maybe there still is a chance to save the company. I believe that there are billions of dollars of genuine interest from new investors that could go to making customers whole.
two asset classes: “playing on ‘to the moon’ and ‘stone’ for our target industries of digital assets and hemp/cannabis related business.”
Even they sent him packing, but he probably found another bank.
Some people are going to have to go to jail here - and I don’t mean that kid and his dopey girlfriend.
They certainly didn’t cook this up on their own.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.