Big Banks Big Problem

[Timshel]

Dodd-Frank is crap and only provides cover. They are too big to fail, manage, regulate or jail. Time to end the subsidies and break them up.

http://economix.blogs.nytimes.com/2013/03/14/big-banks-have-a-big-problem/

The largest banks in the United States face a serious political problem. There has been an outbreak of clear thinking among officials and politicians who increasingly agree that too-big-to-fail is not a good arrangement for the financial sector.

Six banks face the prospect of meaningful constraints on their size: JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. They are fighting back with lobbying dollars in the usual fashion – but in the last electoral cycle they went heavily for Mitt Romney (not elected) and against Elizabeth Warren and Sherrod Brown for the Senate (both elected), so this element of their strategy is hardly prospering.

What the megabanks really need are some arguments that make sense. There are three positions that attract them: the Old Wall Street View, the New View and the New New View. But none of these holds water; the intellectual case for global megabanks at their current scale is crumbling.

 

[Granule]

Dodd-Frank is crap and only provides cover. They are too big to fail, manage, regulate or jail. Time to end the subsidies and break them up.

http://economix.blogs.nytimes.com/2013/03/14/big-banks-have-a-big-problem/

The largest banks in the United States face a serious political problem. There has been an outbreak of clear thinking among officials and politicians who increasingly agree that too-big-to-fail is not a good arrangement for the financial sector.

Six banks face the prospect of meaningful constraints on their size: JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. They are fighting back with lobbying dollars in the usual fashion – but in the last electoral cycle they went heavily for Mitt Romney (not elected) and against Elizabeth Warren and Sherrod Brown for the Senate (both elected), so this element of their strategy is hardly prospering.

What the megabanks really need are some arguments that make sense. There are three positions that attract them: the Old Wall Street View, the New View and the New New View. But none of these holds water; the intellectual case for global megabanks at their current scale is crumbling.

Big government, bigger problem.

 

[Lowaicue]

Dodd-Frank is crap and only provides cover. They are too big to fail, manage, regulate or jail. Time to end the subsidies and break them up.

http://economix.blogs.nytimes.com/2013/03/14/big-banks-have-a-big-problem/

The largest banks in the United States face a serious political problem. There has been an outbreak of clear thinking among officials and politicians who increasingly agree that too-big-to-fail is not a good arrangement for the financial sector.

Six banks face the prospect of meaningful constraints on their size: JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. They are fighting back with lobbying dollars in the usual fashion – but in the last electoral cycle they went heavily for Mitt Romney (not elected) and against Elizabeth Warren and Sherrod Brown for the Senate (both elected), so this element of their strategy is hardly prospering.

What the megabanks really need are some arguments that make sense. There are three positions that attract them: the Old Wall Street View, the New View and the New New View. But none of these holds water; the intellectual case for global megabanks at their current scale is crumbling.

Oh, stop complaining. You have given them most of your money, now just give them the rest. You KNOW it makes sense.
Or, if you prefer, find a convenient oak tree and a piece of good stout rope.

 

[Timshel]

Big government, bigger problem.

Exactly, we need to free ourselves of the big government politicians protecting and subsidizing these mega banks.

 

[canceled.2021.1]

Those damned republicans Chris Dodd and Barney Frank have been in bed with the bankstas forever. But, never fear, Obama will fix it. I can't believe Bush signed the bill the two Republicans Chris Dodd and Barney Frank authored.

Unfuckingreal isn't it?

 

[Timshel]

Taxpayers are put at risk by the actions of these big banks. Letting them fail (what I supported) would hurt a hell of alot in the near term and only really pay off if we were able to continue practicing the same discipline. The politicians of both parties are unwilling to do so and even if today they were there is no guarantee of future responses.

We need to manage our risk and have every right to do so as these behemoths would not exist without the protections and subsidies of the American taxpayers. The easiest, least intrusive, least expensive and most effective way would be to discourage them from or remove the encouragments to becoming too big to fail.

 

[Cancel 2016.2]

We need to eliminate Dodd Frank and put Glass Steagall back in place. Break the retail banks apart from the investment banks. Let the investment banks fail if their risky behavior blows up their portfolios. Right now there is no downside to taking such risk for the big banks. Either their bets make a lot of money and they win... or the bets lose and the taxpayers get stuck bailing them out again.