Economy
Related: About this forumBig Banks Are Hazardous to U.S. Financial Health
By Simon Johnson Sep 2, 2012 6:30 PM ET
(Bloomberg) The debate over whether the U.S.s largest banks are too big is heating up. Since the 2008 financial crisis, the perception has taken hold among some analysts and economists that certain U.S. institutions are too big to fail, meaning they would have to be bailed out to protect the financial system in the event of another calamity.
The recent trading losses at JPMorgan Chase & Co. and scandals over money laundering at HSBC Holdings Plc and Standard Chartered Plc have prompted even financial-industry insiders to ask whether these complex global organizations are too big to manage.
The continued downward spiral in Europe raises a similar question: Are some banks too big to save, meaning their collapse could dramatically worsen the euro crisis (as happened in Ireland in the fall of 2008 and is happening now in Spain and Greece)?
The critics must be gaining converts because, in recent weeks, the defenders of large banks have started to push back. William B. Harrison Jr., the former chairman of JPMorgan, and Wayne Abernathy, the executive vice president of the American Bankers Association, both wrote op-eds that argue against breaking up banks. The Financial Services Roundtable, a large- bank lobby group, has circulated two e-mails insisting that the critics arguments are based entirely on myths. ..................(more)
The complete piece is at: http://www.bloomberg.com/news/2012-09-02/big-banks-are-hazardous-to-u-s-financial-health.html
Navl
(18 posts)Instead of "bailing them out" why not just take them over, or at least take a large enough stake to exert significant control over the salaries that are paid there?
The government still owns about 500 million shares, or about 32% of GM stock. It controls salaries at the company, and their CEO "only" made about 8 million last year in salary, stock, and benefits. That's a lot of money to most people, but Ford's CEO made about $29.5 mil.
By taking significant control of these companies can't we then distribute the wages in a more equitable manner? Isn't that what we all want?
The government and banks are inseperable they could not exist without each other.
mbperrin
(7,672 posts)They have done the biggest con in the world by convincing people that having it NOW is worth paying many times the price for it, whatever IT is.
Haven't used or needed a bank, credit union, or other financial account since 1978, and I figure I have literally saved a million dollars in fees, interest, overhead, fines, waste, and other money right out of my pocket.
Banks are only good for themselves, just like any criminal enterprise.