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Dallas Fed president: No banks too large to fail
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warrens
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PostPosted: Sat Mar 16, 2013 11:37 pm    Post subject: Dallas Fed president: No banks too large to fail Reply with quote

Quote:
Calling it the “injustice of operating” in a U.S. economy “under the thumb of financial institutions that are so large they are considered ‘too big to fail,’” Federal Reserve Bank of Dallas President Richard Fisher proposed rolling back the federal safety net and other protections for large banks.

In a speech at the Conservative Political Action Conference at National Harbor, Md., on Saturday, Fisher said banking giants, a dozen of which control almost 70% of the assets in the U.S. banking industry, “operate under a privileged status that exacts an unfair tax upon the American people.”

“The concentration of assets has been ongoing, but it intensified during the 2008–09 financial crisis, when several failing giants were absorbed by larger, presumably healthier ones,” he said. “The result is a lopsided financial system.”

He added the “megabanks,” —a mere 0.2% of banks and considered “too big to fail,” are treated differently from the other 99.8% of banks.


http://www.marketwatch.com/story/dallas-fed-president-no-banks-too-large-to-fail-2013-03-16?siteid=YAHOOB
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aidanjt
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PostPosted: Sun Mar 17, 2013 1:10 am    Post subject: Reply with quote

The problem isn't with the number of megabanks, the problem is that they host the vast majority of all the personal and SME financial assets in the country, and they're grossly interdependent. Of course they've done this intentionally (or at least with no regard for the consequences of their failure). But it is pure nonsense to espouse the idea that too big to fail banks can in fact be left to fall down and let the pieces land where they may and there'd be no great consequence to that.

At the very least they all need to be broken up and separated into more isolated, failable, manageable and competitive chunks.
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flysideways
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PostPosted: Sun Mar 17, 2013 3:21 am    Post subject: Reply with quote

Federal Deposit Insurance Corporation wrote:
Each depositor insured to at least $250,000 per insured bank
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warrens
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PostPosted: Mon Mar 18, 2013 8:16 pm    Post subject: Reply with quote

aidanjt wrote:
The problem isn't with the number of megabanks, the problem is that they host the vast majority of all the personal and SME financial assets in the country, and they're grossly interdependent. Of course they've done this intentionally (or at least with no regard for the consequences of their failure). But it is pure nonsense to espouse the idea that too big to fail banks can in fact be left to fall down and let the pieces land where they may and there'd be no great consequence to that.

At the very least they all need to be broken up and separated into more isolated, failable, manageable and competitive chunks.

It would have been better, though painful, to have let them fail than give their CEOs billions of tax payer money to fund their vacations with.
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wildhorse
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PostPosted: Mon Mar 18, 2013 8:36 pm    Post subject: Reply with quote

Wait until you learn all about the degree of damage caused by Bank of America, Goldman Sachs, et al. :twisted:
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warrens
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PostPosted: Mon Mar 18, 2013 9:49 pm    Post subject: Reply with quote

At the rate the US gov is spending and printing money I expect the day to come where I take a wheelbarrow of money to the store to buy a loaf of bread and I come out to get the money and find that somebody stole the wheelbarrow and left the money.
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