AIBEUF on recent failure of US and Swiss banks

Comrade Jagannath Raymandal, General Secretary, All India Bank Employees’ Unity Forum (AIBEUF), has issued the following press statement on 25-03-23:
With three prominent banks in the USA collapsing within a week and Switzerland-based Credit Swisse on the brink of shrinking, the acute insolvable economic crisis of decadent moribund utterly corrupt and reactionary capitalism is glaringly manifested. When liabilities of a bank outweigh its assets, the bank is said to be insolvent. But with capitalist market squeezing with every passing day because of rapidly falling purchasing power of the common people, no capitalist owner is prepared to run even existing productive industries, let alone opting for setting up new enterprises, since their scope for maximization of profit is eluding. So, they are not going for credit offtake from banks which, in absence of normal lending avenues, are heavily investing in speculative capital market to balance assets with liability. Also, they are depending on the value of their own shares which have been soaring because of increased flow of money in stocks and other marketable securities. Now if the share values or market value of securities fall abnormally, the banks lack resources to meet liabilities. That is what has caused insolvency of the US banks and imbalance in Credit Swisse. Over-speculation with securitized debts had caused sub-prime crisis in 2008. Now again over-exposure in speculation is shaking the banking industry. With globalization, world capitalist economy is integrated, and almost same policies are followed everywhere including India. Those who hope that US regulator’s invocation of ‘‘exception’’ clauses in their play book to insure deposits that weren’t earlier covered would tamp down on the panic and prevent a contagion might be self-defeating as the root of the disease lies in the very law of dying capitalism and no quackery can cure it.
It is incumbent on all bank employees and common working people to imbibe the truth, join hands, rise above all petty-considerations and create pressure on the banks, regulating authorities and the government to abandon anti-people pro-monopolist policies including reckless privatization and using the banks as a conduit to flattening the purse of the industrial giants putting hard-earned money of the depositors in the risk of being wiped out.