Tag: banks

SCOTUS Allows IRS to Carry Out Secret, Warrantless Searches of Innocent Taxpayers’ Bank Accounts

In a unanimous opinion, the U.S. Supreme Court is allowing the IRS to go on secret, warrantless fishing expeditions through innocent taxpayers’ bank records in order to identify and collect unpaid taxes from family members and associates who have no legal interest in those bank accounts.

Despite acknowledging that “the authority vested in tax collectors may be abused, as all power is subject to abuse,” and that “Congress has given the IRS considerable power,” the Supreme Court’s 9-0 ruling in Polselli v. IRS declined to restrict the IRS’s authority. Attorneys for The Rutherford Institute and Cato Institute had filed an amicus brief in Polselli arguing that the sweeping investigatory power wielded by the IRS—to circumvent the Fourth Amendment by carrying out warrantless searches of the bank accounts and records of innocent people, who are given no notice or right to object to the search, merely because they may be associated with a delinquent taxpayer—offends every constitutional sensibility on the right to privacy.

“This practice of investigating the bank records of innocent taxpayers because they may have family members or associates who are delinquent on their taxes is merely a perverse form of guilt by association,” said constitutional attorney John W. Whitehead, president of The Rutherford Institute and author of Battlefield America: The War on the American People. “At a minimum, Fourth Amendment protections should not disappear just because sensitive information is shared with third parties, such as banks and attorneys.”

The case arose after an IRS Revenue Officer, seeking to collect underpaid federal taxes by Remo Polselli, served summonses on the banks of Polselli’s wife and attorney in order to find account and financial records concerning Polselli. The IRS agent did not notify Polselli’s wife or attorney of the summonses, but the banks voluntarily did so. Polselli’s wife and attorney subsequently filed motions in federal district court to quash the IRS’s summonses. In siding with the IRS, the district court held that Polselli’s wife and attorney are not entitled to notice of the summons and have no right to even be heard on their motions to quash the summonses.

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FBI Whistleblower Report: Bank of America Gave Americans’ Banking Info to FBI Around January 6

A House Judiciary Committee report on FBI whistleblowers found that Bank of America provided the FBI a list of anyone who used their services in the D.C. area regardless of if they participated in the events of the January 6 protests.

The House Judiciary Select Subcommittee on the Weaponization of the Federal Government released an interim report on the government’s abuse, misallocation of resources, and retaliation.

Among the Judiciary Committee’s many revelations, FBI whistleblowers Garret O’Boyle, and retired FBI supervisory Intelligence George Hill testified about how Bank of America (BoA) gave the FBI’s Washington Field Office a list of individuals who had made transactions in the D.C., Maryland, and Virginia area with a BoA credit or debit card between January 5 and 7, 2021.

Hill also testified that individuals who had previously purchased a firearm with a BoA product were elevated to the top of the list provided to the FBI Washington Field Office, which was reported by Breitbart News’s Ashley Oliver.

Rep. Thomas Massie (R-KY), a member of the weaponization subcommittee, emphasized during the subcommittee’s Thursday hearing that Hill testified that there was no geolocation fencing regarding the datamining of Americans’ purchasing of firearms.

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Big Banks, Corporations Getting 90 Percent Of Biden’s Green Energy Credits: Congressional Study

Most of the green energy tax benefits provided by President Joe Biden’s $750 billion Inflation Reduction Act (IRA) of 2022 are going into the coffers of big banks and billion-dollar corporations, according to House Ways and Means Committee Chairman Jason Smith (R-Mo.).

“While President Biden’s supercharged IRS is warming up to target working Americans, his administration is getting ready to spend those tax dollars to subsidize special interest green energy projects of billion-dollar companies,” Smith said in a statement based on a new congressional analysis issued by the Joint Committee on Taxation (JCT).

Smith was referring to the Biden administration’s controversial plan to double the size of the IRS workforce by adding 87,000 new tax investigators and auditors. House Republicans want to defund the IRS expansion plan.

“Many of the same companies getting a green corporate welfare check have shed their American identity to do business with the Chinese Communist Party (CCP), and, as a result, our tax dollars are being funneled to Chinese entities that manipulate our key supply chains,” Smith continued.

“While House Republicans are fighting for working families struggling to pay their gasoline and utility bills, House Democrats are prioritizing foreign nations and sending as many taxpayer-funded handouts to corporations as possible. With big banks pocketing three times more of these special interest tax breaks than any other industry, it’s clear Democrats are rewarding their friends on Wall Street that push their partisan ESG agenda,” the Missouri Republican said.

The JCT includes members from both the Senate and House of Representatives, and the chairmanship and vice chairmanship positions are rotated between the two chambers from one Congress to the next. Smith is the chairman this year, while Sen. Ron Wyden (D-Ore.), the most senior senator on the panel, is the vice chairman.

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Federal Reserve head is questioned on controversial “debanking of disfavored individuals”

During a recent House Committee hearing, Chair of the Federal Reserve Jerome Powell was grilled on “Operation Choke Point 2.0” — an alleged Biden administration effort that Rep. Warren Davidson (R-OH) described as being “particularly focused on debanking people that are disfavored by…the current…executive branch.”

Rep. Warren Davidson (R-OH) told Powell that he’d spoken with multiple bankers who said “they’ve never seen a higher degree of regulatory burden, steering guidance, shaping activities in the market from regulators.”

He attributed this heightened scrutiny to Operation Choke Point 2.0 — a reference to an alleged extension of Operation Choke Point 1.0. The first Operation Choke Point was an Obama-era debanking effort that began in 2013 and attempted to prevent gun dealers, payday lenders, and other companies that were deemed to be “high risk” from accessing banking services. Some people in the cryptocurrency industry claim that Operation Choke Point 2.0 is now being carried out by the Biden adminsitration and is primarily focused on deterring banks from doing business with cryptocurrency firms.

“When people really feel like some third party is going to steer or shape their money, they don’t trust it,” Davidson added. “I mean the unbanked and the underbanked fundamentally that’s lack of trust is part of why they don’t use our banking system today. In fact, that’s part of the appeal of the digital asset space…the permissionless nature of it.”

Davidson continued by suggesting that lots of people working in the financial services space “feel threatened by the prospect of change” and are attempting to restrict access to services such as cryptocurrency.

“They’ve maybe reluctantly concluded that you can’t ban crypto,” Davidson said. “They at least want to keep it account based so some third party can actually control the assets which is a polite way of saying, ‘We don’t actually trust our citizens to control their money or their assets, we’ll let somebody else do it for them because we can control those third parties.’”

Davidson then pressed Powell on whether financial regulators use their powers to control third parties.

“If you don’t comply with the regulatory regime, you don’t get to operate a financial services business, right?” Davidson asked Powell.

“That’s right,” Powell confirmed.

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“Disinformation experts” blame “conspiratorial narratives,” “far-right websites,” for Silicon Valley Bank panic

Just days after a Senator was caught asking whether there were systems in place to censor social media in an attempt to prevent a bank run, “disinformation experts” are partially blaming the Silicon Valley bank collapse exacerbation on online conspiracy theorists on social media.

“Russian media outlets, far-right websites, short sellers and doomsday preppers were among those who pushed and amplified conspiracy theories online focused on the collapse of Silicon Valley Bank,” Bloomberg alleges.

According to anti-disinformation for-profit firm Alethea, a wide range of accounts used the bank’s collapse to promote their own agendas.

The firm’s founder Lisa Kaplan told Bloomberg that the claims by venture capitalists speculating the collapse of the bank that were amplified “propagandists and foreign influencers” contributed to the collapse of the bank.

“We assess that these outlets may have increased online panic and contributed to the broader cross-platform spread of false or misleading content about SVB,” Kaplan said to Bloomberg.

“We also assess that conspiratorial narratives may have accelerated panic, which then posed a risk to the broader financial system,” she said.

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Western governments are on the verge of introducing expiring money

The European Central Bank (ECB) is considering using negative interest rates, a tool that erodes the value of your money, as it introduces the digital euro — its central bank digital currency (CBDC).

This is according to Sarah Palurovic, the executive director of the Digital Euro Association (DEA) think tank.

During an appearance on the Poundcast podcast, Palurovic said that the ECB wants to “keep the possibility open for tiered remuneration” after it introduces the digital euro because the ECB wants to have “measures that incentivize or disincentivize people to hold more or less CBDCs.” She added that one of the measures the ECB is considering is negative interest rates.

Negative interest rates allow bureaucrat at central banks to choose a rate at which your money expires and punish those who save their money. For example, if they set a negative interest rate of -10%, you lose 10% of your money each year unless you spend it.

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Silicon Valley Bank Collapse: Here’s Who Benefited From Their Executive, PAC Donations

Only 15 U.S. banks were deemed “too big to fail” and subjected to rigorous stress testing after the Great Recession.

Friday’s closure of the nation’s 16th largest bank demonstrates the Biden administration feels all banks are too big to fail.

Silicon Valley Bank last week announced it would issue billions in new stock to bolster its finances. That news prompted venture capital funds to tell their startups to yank their money from SVB. A classic bank run ensued, which regulators stopped by seizing control of the bank and placing it into receivership.

Fox Business further reported:

Silicon Valley Bank, the nation’s 16th-largest bank, failed Friday after depositors hurried to withdraw money amid anxiety over the bank’s health. It was the second-biggest bank failure in United States history after the collapse of Washington Mutual in 2008.

The bank’s California executives and political action committee have propped up a handful of politicians in recent elections, which has primarily benefited Democrat lawmakers.

Greg Becker, the bank’s president and chief executive officer, cut two maximum checks totaling $5,800 to the campaigns of New York Senate Majority Leader Chuck Schumer and Virginia Sen. Mark Warner during the 2022 midterm election cycle. The two Democrat senators are the only politicians Becker financially backed directly during the most recent cycle.

Becker also gave $2,500 to the New Democrat Coalition Action Fund in May last year. The New Democrat Coalition Action Fund sent $1 million in contributions to numerous Democrat politicians during the 2022 elections.

Becker’s most recent donations came on the heels of $5,600 he donated between President Biden’s 2020 campaign and victory fund.

Jeffrey Leerink, the chief executive officer of SVB Securities, donated $1,250 to Massachusetts Democrat Rep. Jake Auchincloss during the 2022 and 2020 elections.

Meanwhile, Silicon Valley Bank’s chief credit officer, Marc Cadieux, poured $250 into Biden’s campaign during the 2020 elections.

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Senator Mark Kelly inquired about social media censorship to curb bank runs

On Sunday, while discussing the Silicon Valley Bank collapse in an emergency conference call led by Senate President Chuck Schumer, Senator Mark Kelly (D-AZ) reportedly inquired about the possibility of censoring social media posts to avoid a bank run.

This information was reported by Republican House members who were also present on the call and heard by representatives of the Federal Reserve, Treasury Department, and the Federal Deposit and Insurance Corporation (FDIC).

“Just got off of a zoom meeting with Fed, Treasury, FDIC, House, and Senate,” Kentucky Congressman Thomas Massie tweeted. “A Democrat Senator essentially asked whether there was a program in place to censor information on social media that could lead to a run on the banks.”

Rep. Lauren Boebert also tweeted, “On a briefing with Biden Under Secretary of the Treasury Nellie Liang regarding the SVB [Silicon Valley Bank] BAILOUT they are working towards and a member asked if they were reaching out to Facebook and Twitter to monitor misinformation and ‘bad actors.’”

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Journalist Uses AI Voice to Break into Own Bank Account

In a recent experiment, Vice.com writer Joseph Cox used an AI-generated voice to bypass Lloyds Bank security and access his account.

To achieve this, Cox used a free service of ElevenLabs, an AI-voice generation company that supplies voices for newsletters, books and videos.

Cox recorded five minutes of speech and uploaded it to ElevenLabs. After making some adjustments, such as having the AI read a longer body of text for a more natural cadence, the generated audio outmaneuvered Lloyds security.

“I couldn’t believe it had worked,” Cox wrote in his Vice article. “I had used an AI-powered replica of a voice to break into a bank account. After that, I accessed the account information, including balances and a list of recent transactions and transfers.”

Multiple United States and European banks use voice authentication to speed logins over the phone. While some banks claim that voice identification is comparable to a fingerprint, this experiment demonstrates that voice-based biometric security does not offer perfect protection.

ElevenLabs did not comment on the hack despite multiple requests, Cox says. However, in a previous statement, the firm’s co-founder, Mati Staniszewski, said new safeguards reduce misuse and support authorities in identifying those who break the law.

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