order transactions in a bit to what is the dollar rising global south trade with the indian currency becoming more international. we heard from a professor of political science at hell one university who says it's an important trend as a dollar. busy has always been used by the us as a tool. the economic crisis now is how to get the dollar. and the u. s. is trying to exercise control on countries on the supply of dollars. and they have to submit to their economic and political conditions. why? when you deal with the euro, b, as in india or the robber in russia, there are no political conditions set on the developing countries. the 18 countries club dealing with will be the indian. you will be. ready some of them are western countries like germany, when germany, economic leader in europe joining this. this shows

a very clear, blunt indicated that the future is for the d dollars. they should, if you should, is for that is not the west. now, the western block is in the decline stage. then you add that into china, essentially kicking out the petro dollar and replacing it with the petro, you one, a brand new multi polar world of accelerating faster than anyone could have imagined. more details when we return to the top of a ah, hello, i'm manila chan. you're tuned into modus operandi. risky, bad too big to fail. mig bailouts for the banks. for many. it's deja low back to

2008 after several banks in the u. s. collapse, a major international bank stands to go belly up. so were any lessons learned from the financial crisis that rec, the global economy just 14 years ago. tonight will disc, the world's financial system in chaos with a former credit suisse. insider. all right, let's get into the m o. the me. as the old saying goes, when the u. s. sneezes, the rest of the world catches a cold, and that might be applicable once again to the global financial system. after 3 american banks collapse in the span of one week seized by the federal government, after some had run on deposits, silicon valley bank in guest at northern california signature bank in manhattan and

silver gate bank in san diego, california all collapsed. then within days, the announcement of 1st republic bank also a california based bank, getting a cash infusion from bigger banks in an effort to stem the domino effect of banks getting shuddered. all these so called regional banks waiting into the uncertain world a fintech and venture capital. however, and international name in banking now facing colossal collapse with their balance sheets far greater than all those other banks. combined, credit suisse with hundreds of global offices, divisions, and every sector of the economy. this combination, consumer investment bank has been roiled in controversy from their london offices to shanghai. so for more on this global banking crisis, we are joined by a former credit suisse banker, david towell. he's now be president of pro chain capital. he's

a hedge fund manager, with expertise in crypto venture capital, and he's also an attorney. so dave, thanks for joining us. credit suisse is a 166 year old company. it's literally an institution in and of itself 1st, how bank managed to survive and thrive all of these decades up until this point, through all the global economic turmoil. i mean, i'm talking world war. the great depression, regional conflicts, how have they survived, what made their business model of banking able to withstand all of these external forces. certainly i wasn't at credit suisse. ready all those decades ago, but i think, you know, it started out as a national bank, not that it was not owned by the nation, but it certainly was swiss centric to begin with. and then in light of the fact that tax avoidance was used by many around the world through

swiss bank accounts. certainly credit suisse was able to go ahead and capitalize on that. when that was invoke. in addition, over time, the bank expanded far beyond switzerland, with branches, frankly, all over the world. and certainly very large presence in all major financial capital's around the world. and it was able to have functions far beyond just deposits in london, but also very meaningful investment banking activities and wealth management as well in terms of being able to weather recent crises. i don't think the bank particularly whether them well it's stock price has been hurt. certainly. ready over the last 10 to 20 years, we've seen it a road and the, the largest shareholders of the company has been from the middle east. and

they saw some opportunities in the bank. but i think with all that went away with respect to tax avoidance. ready and the panama papers, i think a large part of the business has gone away as that is that it's never going to return. and as you said, the company has a very well known franchise, but it certainly is fighting very harsh competition in, in other investment banks. so that's where the, the bank sees itself and find itself. all right, so a lot of nerves are rattled right now in the banking industry on both sides, both customers and bankers. people on both sides of this. obviously, credit suisse is a multi national organization, though they're getting an infusion from the swiss central bank. is that going to be enough to quell global fears about whether or not their deposits are safe in these

dozens of countries that credit suisse operates out of? so i'm going to touch on one of the words that you use, which is fears. i think it quelled the panic, but i don't think it as quelled the fears. and what i think the infusion and the support from swiss national bank does for credit suisse is it allows the bank to kind of get right size shrink with deposits, leaving by those who are fearful over time, but not in one fell swoop in a panic. in a panic, it would be very messy. it would be destructive to the bank and to depositors and customers of the bank more generally. and i think certainly that's what the swiss banking authority wanted to go ahead and provide, provide some breathing room to go ahead and assess the options for the day for the

swiss begging authorities to go ahead and get the bank to a new place which is clearly at the very least, the smaller bank potentially get merged into another bank. there have been rumors about a merger with u. b. s, which is another switch bank or you know, potential nationalization or may or may be rescued by another financial institution that is not was so it gives a bunch of breathing room. it goes adding quality panic and you know, we will. ready way over the next weeks and months to see where credit suisse is going to go. yeah, certainly an important distinction in the industry there between panic and fear. so in the us to one of 2023, we saw 3 regional banks collapse. the feds have taken over and then shuddered. s v b, signature bank and silver gate. lawmakers and people like treasury secretary, janet yellen, tell americans that are banking system. it's safe that these are isolated incidents

. but dave, 3 banks in the span of one week on its face means they are not isolated events. then a week later, this banking giant credit suisse. so a few things here, if you can address for our international audience, these so called regional banks, s v b, signature and silver gate. they've got an international component to their business models as well. get into that for us. and why did us regulators allow these banks to fail? whereas in credit suisse case, the e. c, be prevented them from folding. so it's a lot to digest and respond to manila. ah, but certainly all important questions with respect to the regional banks. there reaches beyond the united states, i think mostly we're talking about silicon valley bank where s p b and silver gate s b is the cornerstone of the

venture capital community. and although the venture capital capital largely comes from us, venture capital managers or venture capital funds, their investors in turn to venture capital funds, get their money from lots of different places all across the world. sovereign wealth funds, you know, in various countries, foundations high net worth. ready individuals and so forth. and then the other thing which i think is more public, is the fact that the ventures themselves that those venture capital funds invest in are located in all different places around the world. and technology hub around the world has venture capital driven investments there. and those venture capital investments may have very well banked at silicon valley bank. so valley bank didn't only have branches here in the united states. they had branch branches around the world as well, particularly the u. k. has been,

has been highlight. so that's, that's with respect to silicon valley solar gate, little bit different silver gate was largely tied to crypto. and the crypto community, you know, is a worldwide community and very much interconnected in the way that they hold hold crypto goes ahead and connect them. but the other thing is that they're, they're having, there aren't very many. and now there are even less crypto friendly banks in the united states are taking down. silver gate certainly goes ahead and has its tentacles, which, which their tentacles, you know, are, are throughout the world through the crypto. certainly there's reparations throughout the world. and then lastly with respect to credit suisse, we're talking about. ready to a. ringback different animal, i think it's just it's, it's a, it's coincidence of timing, that credit suisse is coming under massive pressure at same time as these regional

bags. i mean, granted, it's not coincidence in the sense that people are scared about their deposits. because of what happened to the fail in the failure of std. so gate and signature that people start to get concerned around for at least for credit suisse. that's been floundering for a number of years now. and there have been questions around credits with his ability to continue. they've had leadership changes, they've had a rasp of scandals and they've been skating on thin ice sort of say, for a long time. now, this is just exacerbated the situation. but in terms of what the u. c, b is going to do, right? really related to credit suisse crates, which is a much, much larger institution by magnitudes of, you know, a couple times greater than these regional banks. and like i said earlier, crates, reese's reach is substantial around the world. it's not that they

just have branches. in other places, they have actual offices that employ hundreds of people, if not thousands of people in cities like new york or london and shanghai and in singapore and so on. so i think it's, it's a much bigger. ready situation that could, if it did devolve, could go ahead and effect other large investment banks around the world. and i think that the c b would not want that to happen. and coming up next, crypto has disrupted the financial industry all over the world and wave modern banking has never before seen. but could these coins spell ruin for institutions like credit suisse? that's what one us lawmaker asserts. we'll discuss it when we return with david todd. will sit tight, the emma will be right back. i

ah. so what we've got to do is identify the threats that we have. it's crazy confrontation, let it be an arms race, movies on, often very dramatic development, only personally and getting to resist. i don't see how that strategy will be successful, very critical. i'm time to sit down and talk with ah, welcome back to the imo. i'm manila champ. the rise of crypto in the past decade, could be the creative destruction. joseph. shoot peter,

one of the leading 19th century economists for told not since the creation of money itself has something disrupted, how we view value and wealth. dave, how well president of pro chain capital and crypto expert is back with us to discuss. so dave, let's get into your wheel house here. crypto. you are a hedge fund guy. you co founded protein capital signature bank in manhattan, a, a large portion of their assets under management. come from crypto. now you've told me before in the past that signature, however, is actually best known for it's new york city real estate division. so did crypto ultimately add value to the banks net portfolios, or did it disrupt the business model a little too much, especially given that long time you now retired congressman from boston. barney frank, whose signature legislation, the pun intended, there was the dodd frank act after the 2008 financial crisis that was meant to

scrutinize financial institutions. barney frank sat on the board of signature bank the last few years. up until it folded, he actually took a veiled swipe at crypto recently saying that when dodd frank was an acted crypto didn't exist. so is he implying that crypto is what brought down signature bank? so there was a lengthy interview done with barney frank recently about the downfall a secretary. and he really can't say a lot at this point because signature being closed was really is the only instance thus far. not that we've had lots of banking failures in the united states, but the 1st time a bank has been shut down for no proof of insolvency. so in fact, the signature wasn't, at least as far as the feds allege was not in salt. and so what was the purpose of, of closing them, the risk that they pro posed and what particular risk did they close?

well, they were a very big bank, as you said, to the, to the crypto sector. their exposure to the crypto sector though, was, 1st of all, wasn't the, the, it wasn't the majority of their bank, i think was 25 percent of deposits. and then secondly, what they did for crypto firms, and by the way, my firm banked with signature at the outset of our fund. thankfully we moved away from signature. and i said thankfully, only because we weren't caught in the morass of the past week or so. we moved away from them about a year ago. not for any particular you know, suspicious reason which wanted to be with a more, i'd say less, less out of the line like bank. but nevertheless, signature bank, you know, wasn't doing anything on with respect to crypto. they had no investment in crypto, they simply took deposits from crypto funds and they help those crypto funds taken

investments. and then go ahead and use that money. those funds will go ahead and use that money to buy crypt out, but the crypto wasn't held it signature. they was held that crypto custodians or crypto exchanges. so signature really didn't do much by way of, you know, supporting the crypt the world for the fact that bank those enterprises. but it seems that the feds had been cracking down and there's this monica going around of choke point 2 point. oh, meaning the federal government is trying to choke the crypto ecosystem from any sort of greek breath. one of those breaths that it needs to take is having money move. you can't get cash or us dollars into crypto. ready without it back in the middle. and so the defense sent a very serious message to banks around the country. you know that you better be

aware of being involved or helping aiding a betting the crypto ecosystem. and it's really unfortunate because it's not a criminal, per se, about helping crypto investment firms crypto investment firms are not operating illegally. you know, the question is still out whether they are buying crypto currency. it is that our security is and therefore need to be registered. ready and maybe that in itself is illegal, but that's a monetary part of the lot of this, you know, folks are doing something that is violate of, of the law that there is consensus on. it's still out in terms of, you know, decision being made either by our courts or bar congress in terms of whether crypto is a security or not. but it's not as this is some elicit transaction that's going on . and so, yes, barney frank did say and did indicate that it had

a lot to do with crypto. barney frank, i think, is distancing himself some crypto generally because he was never a cheerleader for crypto anyway. and frankly doesn't have a lot to gain by being a cheerleader for crypto. so he's sticking to his story. but in terms of what the central government has done, it has sent a very serious message to the crypto community, certainly to crypto banks. that being said, one last point on this is that crypto has risen in value massively. well over 20 percent at this point. since this crack now on signature bank started or some silver gate started showing the resiliency of crypto currency. and frankly, maybe some people would rather have their money in crypto, where they can go ahead and take care of it at all times. and, you know, be able to transact that at all times, rather than having it in the bank. and potentially being at risk of the government

shutdown out of that bank sound like a warning shot, the government made their by shattering signature and silver gate. then so us lawmakers often criticize crypto saying things like it's the darkest of dark money or that drug dealers. and unsavory types will use it to fund listed activities. they're floating the idea of course of the digital dollar to totally different concepts obviously. but then going back to credit suisse, we're talking cash money with them. in their case, the swiss franc. but cold hard cash can be traced back to many so called nefarious types from around the world. i'm not going to go into too much detail about the, the names that stem from all over the world, venezuela egypt here in the us. so many other places because i have not been able to independently verify the validity of these account holder's, but credit suisse is believed to have had some $8000000000.00 in shady assets from

these alleged nefarious types, credit suisse is being accused of in effect, money laundering for war lords and drug dealers and so forth. so whether it's crypto or cash, is there any real way to regulate against shady cash or questionable monetary instruments? certainly not. there will always be a way for bad actors to go ahead and use value in order to go ahead and transact as a matter of fact. and this is, you know, one of the things that i think the public has heard wrong is that when it comes to crypto crypto is identifiable that there is an address that is assigned to every account, every crypt or transaction. and so you can go ahead and attach an address to a human being and it can be traced. and that's why we've seen a bunch of situations where crypto was used either in terms of rand,

some or in terms of, you know, other activity to support and otherwise criminal transaction of, let's say drug trade. they've been able to trace those, those, those crypt, those and in fact get them back. those crypt currencies, excuse me, and get them back for the benefit of the original owners in the cases of fest. and in contrast, cash hard cash like greenbacks, right? can't be traced at all unless somebody goes ahead and, you know, uses a certain serial number and deposited deposits in certain bank. so in fact, crypto is better for fighting crime than cold, hard cash in terms of bank accounts. certainly there are ways to go ahead and track your account folders and what they do and where they transfer and so on and so forth. and yeah, you know, i'll go some further than you and say, certainly chris,

we have supported whether knowingly or unknowingly. let's leave that out for a 2nd criminals. and so how other banks certainly, and they've been tagged and you know, they sometimes they pay fines, and that's all that really ever happens. that no one ever gets carted off to jail from one of these banks for having supported one of those types of schemes even know equally. certainly it's usually a fine. that is, that is, you know, large onto the financial institution. so no matter what your goal is, always going to have bad actors. you're going out people that facilitate those bad actors. and it's a question of, you know, i think with respect to crypto currency, it's actually one of the best medium to go ahead and track people and track accounts. and so therefore being able to identify that actors. ready those who facilitate those bad actors in contrast to what has been said from those on the

very far left like elizabeth warren, or it will go into that for us. what about elizabeth warren? oh, elizabeth warren. so little bit warren comes replace, that's near and dear to my heart, which is bankruptcy law. that's what she was. she was professional bankruptcy, was harvard before becoming a sen. well, but she didn't focus when practicing bankruptcy law, i focused on the bankruptcy of corporations of business. she, her focus was personal. bankruptcy which is i'd say, you know, although very sympathetic, sometimes this is the more when it comes to the, the importance of bankruptcy law. but since she's been a senator, she has been by her own admission, a champion of i'd say, you know, lower and middle class, she thinks that all institutions,

financial and otherwise are out to rob. those those, those individuals in some way, whether rob them financially or robbed and opportunity in life or rob them, you know, of paying more taxes than then you know, wealthier or more successful people. ready and this has been our position as a matter of fact to go back to earlier question that we discussed regarding silver, cate sarah warren, pendle public. and the letter is public regarding silver gate throwing a lot of doubts out publicly regarding the stability of the bank and many in congress and many pundits that fall, congress felt that that was incredibly out of line. because you could argue that senator warren actually was the straw that broke the camel's back, started to run on the bank. started everybody thinking about, well,

maybe we should go ahead and shut this bank down. and for congress to go ahead and pick winners and losers, i think is very, very wrong. although, you know, congressional appointees are going to go ahead and invest their personal money. and this is a whole other conversation in stocks that they know are getting favorable. trimming stock companies that they know getting federal treatment on the hill. this is really stuff too far. where you go ahead and use your pulp it to call out particular institution. it's one thing to go ahead and call up the department of justice or the f b i c, and maybe give them a tip or tell them, you know, go ahead and hone their focus on a particular institution. but the, call it out publicly in a letter that everybody is going to read and not necessarily be supported by fax, a bunch of you know, the. ready the statements and the letter were questions are day, you know, on financial, on financially solid grounds on it just so st out in the public. and that's

incredibly, incredibly appropriate. i think, you know, she should be called out very loudly for what, for what she did. you know, in the case of silver gate, which may very, how very well have started to daisy chain of what we now see in the cases of signature in the case. so con, dollar bank, so on david towell, president of pro chain capital. unfortunately, i am out of time, so we'll have to leave it right there. thank you so much, dave. thank you for having the manila and that is got a do it for today's episode. modus operandi the show that digs deep into foreign policy and current affairs. i'm your house, manila chan. thank you for tuning and we'll see you again next time to figure out the ammo. ah, ah,

my name is frank, i'm a retired from philadelphia. got in the movement at age 13, going on 14, we were violent towards those people because we believed that were this race were here 1st, and this is our country being part of that movement. i got a sense of power. when i felt powerless, we got attention when i felt invisible and accepted when i talked to level life after, hey, is an organization that was founded by for a skinhead not to be white supremacists in the u. s. in canada. and they found each other and they knew that they wanted to help other guys get out was 2 parts to getting out of a violent extreme was the 1st part of disengagement which is where you leave the social group. and then the next part is d. radicalization work belief systems ology are removed. it was very impactful. when someone finally came along with no fear, no judgement, you heard my story did nothing to challenge it. validate with

headlines right now, one off international areas. so wall street journal reporter faces 20 years in prison. nothings arrested by russian authorities potentially looking at challenges of espionage on behalf of the u. s. government. the u. s. congress rejects legislation for increased oversight of the billions being sent to ukraine despite the concerns of regular americans about why they had to pay a dollars. keep getting sent so far away from home. also in the program, brazil and china striking a deal to ditch the us.