If a bank is either, (a)too-big-to-fail, (b)too-big-to-send-the bankers-to-jail, or (c) both, then they damn well should be broken up…quoting a HuffPost article by VT Sen. Bernie Sanders:
Breaking up the too big to fail financial institutions is a notion that has drawn support from some leading figures in the financial community. Richard Fisher, president of the Dallas Federal Reserve Bank, wrote this: “The safer the individual banks, the safer the financial system. The ultimate destination — an economy relatively free from financial crises — won’t be reached until we have the fortitude to break up the giant banks.” James Bullard, the head of the St. Louis Fed, also weighed in. “I do kind of agree that ‘too big to fail’ is ‘too big to exist.'” Thomas Hoenig, the former Kansas City Fed president, was an early supporter of the idea of breaking up big U.S. banks. “I think [too big to fail banks] should be broken up. And in doing so, I think you’ll make the financial system itself more stable. I think you will make it more competitive, and I think you will have long-run benefits over our current system, which leads to bailouts when crises occur.”
In my view, no single financial institution should be so large that its failure would cause catastrophic risk to millions of American jobs or to our nation’s economic wellbeing. No single financial institution should have holdings so extensive that its failure could send the world economy into crisis. And, perhaps most importantly, no institution in America should be above the law. We need to break up these institutions because of the tremendous damage they have done to our economy.(Daily Kos)
For what it’s worth, they can start with Bank of America & Wells Fargo; both of ’em are based here in North Carolina and they spare no expense screwing over customers at any opportunity…
Yes, we know Wall Street and major American banking firms have been long opposed to Sen.-Elect Elizabeth Warren; they were opposed to her when she headed the Consumer Financial Protection Bureau, they fought tooth-and-nail against her when she ran against Sen. Scott Brown(R-MA) for the Senate this year…now they’re fighting her likely appointment to the Senate Banking Committee; quoting Mother Jones…
But the big banks are not fans of Warren, and their representatives in Washington have her in their crosshairs. Aides to two senators on the banking committee tell Mother Jones the industry has already moved to block Warren from joining the committee, which is charged with drafting legislation regulating much of the financial industry. “Downtown”—shorthand for Washington’s lobbying corridor—”has been going nuts” to keep her off the committee, another Senate aide says.
Sen. Jack Reed (D-R.I.), a banking committee member, has been angling to get Warren on the committee, “but there are many bank lobbyists pushing to keep her off,” a top Democratic Senate aide told Politico‘s Morning Money tipsheet. But the aide added, “If she really wants banking, it will be very tough politically to keep her off.”
And the reasons they want to keep her off the Senate Banking Committee are many..for instance:
- Her support for the Dodd-Frank financial reform law following the late 2000’s “great recession” and her attacks against then-Sen. Brown for trying to undermine Dodd-Frank
- Her support for the Volcker Rule, which limits the speculative trades banks can execute with their own money(one of the reasons banks & financial firms got into as much trouble as they did prior to the Great Recession)
- Her support for revisiting & possibly reinstating Glass-Steagall, which separated commercial banking and financial institutions(banks and savings & loans) from riskier financial instutitions(investment firms, hedge funds, etc.). If Glass-Steagall were still in effect, it would mean the divestiture and breakup of some very large Wall Street firms, such as JPMorgan Chase, Bank of America and CitiGroup.
Now, I know I ain’t the sharpest tool in the proverbial toolshed but last time I remember, Elizabeth Warren won that Senate race in Massachusetts on the up-and-up; I also seem to remember that under Senate rules, Majority Leader Harry Reid(D-NV) can appoint anyone he damn well wants to to whichever committee he so decides to…so for what’s it worth, Reid should tell the banks to stuff it and apooint Warren to the Banking Committee. At the very least, it’ll be fun watching all the coronaries likely to erupt from Wall Street when it happens.