Too Big To Fail Banks Will Kill All Reforms

Econophile's picture

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Urban Redneck's picture

The devil is in the details.  The %'s associated with risk capital and liquidity are irrelevant absent the definitions for risk capital and liquidity, which the regulators are free to adjust at any time.  The problem that triggered the 2008 credit crisis was markets coming to the realization that certain things rated AAA by the credit agencies, and treated as risk-free and liquid by the regulators simply weren't. 

tony bonn's picture

yes the plutocrat-banksters control the financial system and the government....reform will only come when the rickety mexican space shuttle they pilot crashes and burns....but then we must quickly point out that they want it to crash because who could ever waste a perfectly good crisis to grab more power?.....

the problems with the plutocracy are myriad but the combination of fractional reserve banking, the federal reserve (pond of the plutocrats), and total regulatory capture blend to create a coercive totalitarian where the little people (99%) are serfs.....

and barney frank is NOT a gentleman.....he has purchased underage male sex slaves to service his disgusting dick....he is a criminal who should be locked up in prison.

CEOoftheSOFA's picture

If you look at all the economic downturns in the 19th century, all but one of them had "excess bank leverage" as a contributing factor.  I have always been in favor of going light on regulations, but these bankers just never learn.   

JW n FL's picture

Top U.S. Lobbying Banks Got Biggest Bailouts


1.    [PDF]

A Fistful of Dollars:Lobbying and the Financial Crisis; Financial ...

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A Fistful of Dollars: Lobbying and the Financial Crisis by. Deniz Igan ...

EcoJoker's picture

I suspect someone will pull bankers into the streets and beat them dead until it snowballs into a bloody revolution.


geno-econ's picture

Treasury and Fed bailed out banks after they learned to play utilizing  unregulated financial games and quickly got into trouble.  They were bailed out because they were too big to fail. If the unregulated practices continue , which they are , and Dodd/Franks is undermined by lobbyist, then we will repeat history. Conundrum is why not break-up large banks into smaller banks? . Reason given is they would no longer be competetive globally and besides the only hope for job creation is in financial and service related industries which rely on cheap and risky financing ala RE.  

 Result is we are in a spiral leading to a complete collapse. Playing around with payroll taxes will make matters worse.

AmCockerSpaniel's picture

As long as there is corruption/ lobbyists we are just spinning our wheels. FDR knew what he was doing, and why.

FunkyOldGeezer's picture

Look, if the government could confiscate Gold back in the '30s, I'm sure they could confiscate banks... or threaten to do so.

Get the tanks rolling along Wall Street and start shooting at the 'tards.

Seriously though, a government living within its means would be a great start. Then see who would hold the power.

jm's picture

Here's how it is shaking down.  Subprime MBS is going bidless.  CMBS is just a bad GDP print away from collapse.   

Think of a bank as an option on debt securities.  The option value is going to implode here soon, and banks will have to move for cash to provision and write-off.

All risk will then be screwed. 

The majority will be begging for QE3.


lynnybee's picture

why aren't these s.o.b.'s just nationalized !  get it over with;   let it fall.   wipe them out & be done with it, where the hell are the guts?!  

ebworthen's picture


Dimon's "question" yesterday showed his arrogance and conviction that there is nothing wrong with TBTF banks dictating policy to the Central Banker or the world via the media with veiled threats of not providing "credit" to keep the ponzi going.


rocker's picture

Dimon cried because the FED would not cave in on everything Jamie wanted. Public opinion is strong against TBTF. 

The laugh-er was when he said: "All the bad actors are gone".  LOL on that.

All that's left are the good acting thieves, crooks and banksters.

IdioTsincracY's picture

Nothing has changed ...


Not true! Big shift in the economic system is happening right in front of our eyes, regardless of what economists and ignorant politicians believe.

Vendetta's picture

Gravity is doing its 'magic'

ZackAttack's picture

Indeed, it is slowly, subtly changing to a philosophy of debt aversion.

IdioTsincracY's picture

Unfortunately, it will not be easy to change the system, because, even though the western countries are suffering, there are many nations that are reaping big benefits ...

kind of 'it's my turn now, so.... screw you, we're keeping the system!'

falak pema's picture

Maybe we should gets OBL's ghost to come back from foggy bottom and stand for president in US of A. He would get more votes than either political party. At least he was sincere. And did what he believed in...That's how bad it now looks and feels...The enemy of my enemy is my friend...pity he killed three thousand in the twin towers and all those others on mission...he would have made a good candidate if he had just farted five times a all the others. He even looked in a crazy way like Abe Lincoln...Looking for Susan desperately...