The banking system is unraveling, and most people don’t even realize it.
In this video, Lynette Zang sounded the alarm: multiple "too big to fail" banks are once again proving they are anything but stable. Despite having years to prepare living wills—plans for winding themselves down without sparking another financial crisis—giants like JPMorgan, Bank of America, Goldman Sachs, and Citigroup have failed those tests. Again.
Why Living Wills Matter and Why They’re Being Ignored
After the 2008 financial crisis, Congress passed the Dodd-Frank Act in an effort to restore public confidence. One of its key provisions required major banks to draft “living wills” that outlined how they would unwind their operations during a crisis without needing taxpayer bailouts.
But here we are in 2024, and these same banks are failing their living will obligations. Back in 2016, the same four institutions violated these rules. The consequences? None. No penalties. No enforcement. When there are no consequences for risky behavior, that behavior only escalates.
The System Is More Fragile Than Ever
Lynette warns that the risk in the system has grown far worse. The four banks that failed their most recent living will evaluations are deeply interconnected. If one collapses, the fallout will cascade through the entire financial system. This is how the next Lehman Brothers-style event could unfold.
And make no mistake, there is already a banking crisis in motion. It has not reached critical mass yet, but the pressure is building. Just look at the collapse of Synapse, which Lynette covers in another video. Once client withdrawals accelerate, a full-blown run on the banks becomes a real threat.
Hiding the Risk with Derivatives and Accounting Tricks
The illusion of safety is maintained by hiding the real risk, especially through something called “compression.” Created in 2013, this process allows banks to mask the size of their derivatives exposure by consolidating similar contracts and drastically reducing their reported value.
But derivatives, which are essentially massive leveraged bets, have not disappeared. In fact, they have grown. In 2023 alone, the banking system saw $257 trillion in quarterly compression activity, the highest on record.
According to the Office of the Comptroller of the Currency, Goldman Sachs reports having $54 trillion in derivatives while holding only $521 billion in assets. That’s a leverage ratio of nearly 104 to 1. For every dollar in assets, they’re gambling over $100. Nearly all of those bets are held for trading, not hedging or long-term investment.
The Entire System Is Interconnected and Vulnerable
These banks are not isolated. They have extended credit and financed risk across the entire nonbank financial sector. This includes private equity firms, insurance companies, REITs, open-end investment funds, and more. The interconnectedness ensures that when one part fails, the entire system is dragged down with it.
Despite this, regulators continue to turn a blind eye. They allow these banks to operate without real transparency or accountability. They have done little to address the growing fair value losses in securities portfolios as interest rates rise, leaving banks exposed if forced to sell assets at a loss during a crisis.
There Will Be No Soft Landing
Lynette makes it clear: we are transitioning into a new financial system, and these transitions are never smooth. Central banks have already printed too much money to bail out the next disaster. The time to prepare is now.
You cannot wait for headlines to confirm what is already happening behind the scenes. Once the collapse is visible to everyone, it will be too late to act.
The Path Forward: Sound Money Strategies
Lynette Zang recently joined Citizens for Sound Money because the solution is clear. We need a peaceful revolution built on converting fiat currency into sound money like physical gold and silver.
Gold and silver are finite. Fiat money is not. When the system breaks, only tangible assets will preserve your wealth.
Right now, gold and silver are in a consolidation phase following major breakouts. Central banks are taking advantage of this moment to accumulate precious metals. You should too.
Prepare for the Storm with the Full Mantra:
- Food
- Water
- Energy
- Security
- Barterability
- Wealth Preservation
- Community
- Shelter
The time to act is now. There is already a banking crisis underway. Just because you cannot see it yet does not mean it is not happening. Lynette is showing you the truth.
Get ahead of the collapse. Learn how to protect your financial future with Zang Enterprises’ sound money strategies. Discover how physical gold and silver can help you achieve true financial freedom and safeguard your wealth during economic turmoil.
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