Senator John Kennedy Claims Banks Operate Like Sophisticated Ponzi Schemes
Louisiana Senator John Kennedy expressed concerns about the stability of the US banking system in light of the advancements in technology. In an interview with CNBC, he compared modern banks to the infamous scheme ran by Charles Ponzi over a century ago, suggesting that they rely solely on trust rather than other fundamental properties. Kennedy argued that the world has changed significantly with the emergence of technology and fast communication, and banks can collapse quickly if people lose trust in them. The senator’s remarks come as several regional banks experienced a drop in their share prices recently. PacWest Bancorp, Western Alliance Bancorporation, and Metropolitan Bank Holding Corp have all seen their shares dip in the past week, causing concerns about the overall health of the banking sector.
Clever Robot News Desk 8th May 2023