All we can do is protect ourselves by making those banks stronger

[uscitizen]

SPIN METER: Future bailouts are part of the plan


Sep 14, 7:12 PM (ET)

By DANIEL WAGNER

WASHINGTON (AP) - Speaking on the anniversary of the start of the financial meltdown, President Barack Obama warned bankers not to "expect that next time, American taxpayers will be there to break their fall."

That's not a serious threat.

Obama's plan for overhauling the financial system creates a new category for the largest banks, those whose failures would threaten the wider financial system. These "Tier I" companies will face stricter rules designed to limit how much risk they can take and how much damage they would do if they fail.

But when big banks do fail, taxpayers still will be on the hook. Not rescuing these "systemically important banks" would, by definition, threaten the broader financial system.

"Big banks are always going to be too big for the government to let them go under in the middle of a big financial crisis," said Douglas Elliott, a former investment banker and senior fellow at the Brookings Institution who supports most of the Obama plan. "All we can do is protect ourselves by making those banks stronger, so there's a lower chance they'll go under."

http://apnews.myway.com/article/20090914/D9ANCRI80.html

 

[Topspin]

I totally agree with more regs than anyone has even thought of.
Guess what, big headlines today bank lobbyist have gotten Obama on his kness and he like the taste.

 

[Sammy Jankis]

Obama = Step'n Fetchit for bankers.

 

[PostmodernProphet]

Obama's plan for overhauling the financial system creates a new category for the largest banks, those whose failures would threaten the wider financial system. These "Tier I" companies will face stricter rules designed to limit how much risk they can take and how much damage they would do if they fail.

du'h.....prevent any mergers that would create a bank whose failure would threaten the system......not only does it reduce competition but it obligates us to save their ass to save our own......

 

[Sammy Jankis]

bankers are terrorists

 

[SmarterthanYou]

hmmm, legislation that guarantees bank profits at taxpayer expense. I want to be a bank.

 

[Topspin]

me to, an internet bank with no brick and morter expense. Free money from uncle sam and you get to rape consumers without the courtesy of a reach around.