Responding to a Financial Crisis with Jason Brett

 
 

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“You may not care what the government’s doing and you may think what I’m doing is a total waste of time…but here’s the problem, they’re thinking about you…is Bitcoin going to work, are we going to see this revolution through and everything, I think any help we can get along the way is a positive help.”
— Jason Brett

SHOW DESCRIPTION

Jason Brett is a former FDIC regulator who worked through the 2008 Global Financial Crisis. In this interview, we discuss the events that led up to the 2008 GFC, the implosion of IndyMac & subsequent bank-run and what to expect from regulators following the crypto contagion of 2022.

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In 2008, the Global Financial Crisis brought the economic world to its knees. The crisis was triggered by a combination of factors, including the subprime mortgage crisis, the failure of large financial institutions, and some outright systemic corruption. One of the most notable events during the GFC was the bank run on IndyMac, an institution that failed due to a lack of confidence among its depositors. This event was a clear sign that the financial system was in trouble, leading to calls for greater banking industry regulation.

In response to the GFC, governments around the world implemented a range of regulations. These included increased capital requirements, restrictions on risky lending practices, and increased scrutiny of financial institutions. These regulations aimed to make the financial system more robust and reduce the risk of another crisis.

It's easy to draw parallels to the ‘crypto’ market in 2022. Luna, 3AC, Celcius and FTX all failed because of their lack of adequate risk management, sketchy lending practices, and some out-and-out fraud. Calling into question concerns about the stability and legitimacy of the crypto industry and, unfortunately, dragging bitcoin into this discussion.

While we may see Bitcoin as totally separate to 'crypto', lawmakers and decision-makers do not, and in the fallout from the crypto contagion, we may see draconian regulations impact us going forwards. So what can we learn from the GFC in 2008, and the regulation that may affect us in 2023?

TIMESTAMPS

00:02:22: Introductions
00:05:05: The origins of the 2008 Financial Crisis
00:09:10: FDIC, consumer protection, and bank bailouts
00:16:56: Similarities to the crypto crashes
00:18:47: The start of the 2008 bank run
00:20:05: Video playback
00:34:10: TARP package, and bank centralisation
00:41:58: Failure of banking regulators, and Dodd-Frank Act
00:49:22: Video playback
00:52:28: IndyMac takeover, and home foreclosures
00:56:19: Protecting the elites
01:00:51: FTX, and consumer protection for Bitcoin
01:07:43: Regulatory risks to Bitcoin
01:17:07: Evolving sentiment for Bitcoin in DC
01:19:56: Bitcoin advocates, and the NCET
01:26:51: Biden's Executive Order
01:29:22: Final comments

 

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SHOW NOTES

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Mentioned in the interview:

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