Discussion in 'Political Discussion' started by wistahpatsfan, Jan 8, 2013.
TARP close to breaking even - Dec. 19, 2012
Awwww...but it's not all good news. This from Robert Reich's Facebook page today. Too Big to Fail seems like an even bigger problem now because Obama and Geithner did nothing to control the problem in the future because of this reality:
"The Treasury has just announced that TARP -- the notorious Troubled Assets Relief Program that bailed out Wall Street four years ago -- is now officially over. What the Treasury didn't say is that the biggest Wall Street banks are now far bigger than they were four years ago: The five largest now have almost 44 percent of all US bank deposits. Thatâ€™s up from 37 percent in 2007, just before the crash. A decade ago they had just 28 percent. The biggest keep getting bigger because they can borrow more cheaply than smaller banks, because investors believe the government will bail them out if they get into trouble.
It seems to me that there's no alternative but to limit their size and break up the biggest. The new Congress might agree. The new chairman of the House Financial Services Committee, Texas Republican Jeb Hensarling, has been a strong ally of small banks in their push to rein in their bigger rivals, and has expressed concern about the largest being too big to fail. Meanwhile, over in the Senate, Ohio Senator Sherrod Brown is a strong advocate for breaking up the big banks and is now on the Senate Finance Committee. And Elizabeth Warren, scourge of Wall Street, will sit on the Senate Banking Committee. In other words, the timing is right. The oven is ready. All we need is another multi-billion dollar banking loss â€“ like JP Morgan Chaseâ€™s last year â€“ and the biggest banks are cooked."
Since both republicans AND democrats are in bed with Corp-America, we won't see an anti-trust initiative anytime soon.
You're are correct, breaking them is the right thing to do, but I highly doubt it will even be discussed.
The catch-word that our banks and gov't will say to us is, "Global-Economy". As in....
"We can't break up US banks because they'll be squashed by foreign banks if we do....they're competing in a "Global Economy", so they NEED to remain competitive.
Even though it's a BS. Why not just convince Euro-nations to do the same thing? We'd all benefit from improved competition.
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