Today, the biggest of those banks are even bigger.
By Daniel at 28 August, 2009, 1:42 pm
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
This scares the bejeepers out of me. We need some good old fashioned Teddy Roosevelt trust busting.
I expect the government to break apart the banks once this mess gets settled. There is no reason in the world that they should be this large. What it means is that the CEO of any of the large banks can do whatever they want, take any risks and if they screw up the taxpayers will bail them out. I don’t think is capitalism at work, as a matter of fact this is socialism. Take from the masses and give to the rich.
Though a movie starring Clive Owen has already gave us an insight into what power Big Banks that are too big to fail, can wield when left unregulated or even under-regulated. Not only in this country but worldwide. And the movie was loosely based on a true story of Bank of Credit and Commerce International banking which funded terrorist activities amongst a plethora of dealinga in the 80’s into the 90’s. What do you think will happen to the middle class and the average joe if BOA, CITI, Wells Fargo, JPMORGAN are allowed to stay monopolies. They’ll charge whatever fees, squeeze out whatever competition, and leave us with nowhere else to go. Government can’t help us because the banks have all of our officials on the payroll. They’re gonna get even bigger mark my words.
=============================================
“The crisis may be turning out very well for many of the behemoths that dominate U.S. finance. A series of federally arranged mergers safely landed troubled banks on the decks of more stable firms. And it allowed the survivors to emerge from the turmoil with strengthened market positions, giving them even greater control over consumer lending and more potential to profit.
J.P. Morgan Chase, an amalgam of some of Wall Street’s most storied institutions, now holds more than $1 of every $10 on deposit in this country. So does Bank of America, scarred by its acquisition of Merrill Lynch and partly government-owned as a result of the crisis, as does Wells Fargo, the biggest West Coast bank. Those three banks, plus government-rescued and -owned Citigroup, now issue one of every two mortgages and about two of every three credit cards, federal data show.
A year after the near-collapse of the financial system last September, the federal response has redefined how Americans get mortgages, student loans and other kinds of credit and has made a national spectacle of executive pay. But no consequence of the crisis alarms top regulators more than having banks that were already too big to fail grow even larger and more interconnected. ”
http://www.washingtonpost.com/wp-dyn/content/article/2009/08/27/AR2009082704193.html
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.