I assume that you remember when the US Taxpayers bailed-out the Big Banks. They took undue trading risks and havd (and still do have) Interlocking Relationships with Banks Around the World; but especially in Western Europe. After the Recovery started in 2009, the Dodd-Frank Legislation laid the groundwork to reign-in the Big Banks. Now, they are fighting the enactment of any Legislation whatsoever.
Republican (ex-Private Equity Banker) Presidential Nominee Mitt Romney proposes the Roll-Bank of virtually all regulation–for Banks, and just about everything else. The Banks claim that Regulation would put them at a disadvantage with regard to overseas competitors. Well, guess what, Overseas Banks are pleading the same story to their Central Banks and Regulators. But, listen to what they say.
The Banks also claim that Regulation would hurt jobs. Now, just how many jobs have they created lately? Why would increasing jobs be a goal–if it also increased risks? Let’s break them-up and that would create more jobs, in total.
They talk about having trouble generating profit, versus the Competition. But, they say nothing about Safety and protecting Customers Deposits. Just about everyone of the Big Banks–A/K/A “Too Big to Fail”–where potential basket cases in 2008. But, their total focus seems to be on Profits. Think exorbitant salaries and bonuses. But, they figure that the Taxpayers will have to bail them out.
So, have Taxpayers learned anything over the past several years? Do the Bankers believe that the American Taxpayers are that stupid? Oh, and it was more than Trading Losses and Interlocking-Relationships. Misrepresentation on mortgage origination, taking trading positions against issues they had packaged and sold to clients and, sometimes, perhaps outright fraud. But, when they are caught, there is never any Jail Time–except for Insider Trading–and the fines are always paid by the Shareholders.
THAT’S A GOOD DEAL FOR THE BIG BANKS: THEY TAKE RISKS; REAP THE EXORBITANT BONUSES; SOMEONE ELSE PAYS THE FINES AND TAXPAYERS BAIL THEM OUT.