I once read a description of Goldman Sachs as a giant vampire squid, wrapping itself around the face of, and sucking the life out of anything that smells like money. They are without a doubt in my mind, the most corrupt organization on Wall Street.

That being said, take what this video says with a grain of salt. As one poster pointed out that in the master agreement between One West and the FDIC, OW is required to cover the first 20% of losses. Also those losses are not for individual loans, but for the portfolio in general. I haven't read the master agreement and I'm not going to. Either way you cut it's a sweetheart deal for Goldman.

The same poster points out that the FDIC is funded by premiums paid into the coffers by member banks and that the public at large does not pay for these things. That's a bit misleading, which tells me that poster has something to prove, or hide. While the general public may not pay directly into the FDIC they certainly do as customers of member banks. The cost is simply passed down. There's also zero reassurance that the money the FDIC borrows from the Treasury will be paid back at all, if ever.

We will probably see around another 800 bank failures within the next two years, if not this year. The FDIC doesn't have anywhere near the amount of money needed to cover all those deposits. The monetary base will just continue to expand as it has done for decades. Only now at a much more accelerated pace.