Posted on 05/11/2015 4:59:13 PM PDT by Kartographer
“The top six bank holding companies are considerably larger than before, and are still permitted to borrow excessively relative to the assets they hold,” the report states. “They are dangerously interconnected and remain vulnerable to sudden runs, because they borrow billions of dollars from wholesale lenders who can often demand their cash back each and every day.”
It goes on: “Banks can still use taxpayer-backed insured deposits to engage in high-risk derivative transactions here and overseas. Compensation incentives fail to discourage mismanagement and illegality, given that when legal fees, settlements, and fines mount, it is usually the shareholders, not the corporate executives who pay.”
And, the report warns, “[s]hould one of these giant banking firms fail again, it appears that the damage will not be contained.”
“Avoiding another meltdown depends on the will of federal regulators to use the new powers they were granted in the Dodd-Frank Wall Street Reform and Consumer Protection Act,” said Jennifer Taub, author of the report and professor of law at Vermont Law School. “If they behave as if they are beholden to the banks, we will likely face a more severe crisis in the future.”
(Excerpt) Read more at shtfplan.com ...
ping!
They won’t let it crash until a Republican is in the White House.
It worked in 08.
We was robbed.
Let them fail. It’s the only way to fix the problem.
I’m really kind of tired of all the doom that never comes to fruition. Seems Beck fever has spread.
We don’t need the bottom to fall out of anything, the elitest ruling class is doing just fine destroying this country by a thousand cuts.
Really after all these years of “just wait for what is about to happen” just makes us look like chicken little.
Really the elites are doing fine killing the country slowly while we beg for more. Only one thing is going to right the ship USA and I don’t have to post it everyone knows what it is.
Agreed.
Well don't be bashful, say it.
Glass–Steagall worked.
Banks and Brokers are two different animals with wholly different mandates.
Two different mind sets.
One of capital preservation and the other of a middle man for risk.
Can’t we all just get along?
NO.
No we can’t.
Reinstate Glass-Steagall.
The collateral valuation process is a box-checking mess.
These lenders do not know how to read a title report or a legal description.
.
Fools one and all.
Quit being reasonable. It’s clearly time to freak out.
In fact it is, at least when it comes to banruptcy, where you have to settle and part to determine what sets you as able to make it by, and what isn’t neccessary.
Trolling?
That I agree with, investment and loans together, AFAIK, constitutes a conflict of interest, because now that you have stock in loans, and whether or not they will be paid off, does that sound right to anyone. The only problem with reinstating Glass-Steagal is that politicians will be bogged down in throwing blame. Even today, former president claims he was forced to repeal Glass-Steagall when he signed it. You as POTUS are not constitutionally forced to sign a bill, you can veto it, and let Congress simply try and pass it with a greater majority to override, what’s sad is how many people will buy Clinton’s B.S. about how he was forced to sign the repeal without actually taking a look at what the Constitution says, as a side note, Clinton also showed favoritism toward the repeal as well, so he pretty much lied on both counts of being forced, and being vehemently opposed to the Glass-Steagall repeal.
I think you will like my novel when I finish it...
He is obviously not a criminal and stating the obvious at this point is a federal crime.
https://www.law.cornell.edu/uscode/text/18/2385
And the existence of that law on the books of this nation is one that I think would have repulsed our founders.
The problem now is they have since, passed laws that call for the banks to use existing customers’ deposits to pay for a bail-in rather than another go ernment taxpayer dollar bali-out. They would issue some “stock” in the ank for whatdvr they forcibly took from depositors. Worthless of course.
Would be wise to start paring down what you have in the banks.
18 trillion in debt and rising. Anybody who says a collapse won’t happen because it never has before, consider that we’ve never had this kind of debt before.
I’ve been in this business since 1988.
Banks wanted to be brokers and brokers wanted to be banks.
I think it was Merrill’s “Cash management account” that first broke the ice.
Charles Schwab ran with this and broke down many of the barriers.
An investment account that functioned as a bank account?.
Big threat for the bankers back in the early 1990’s.
See, the banks had assets by way of captive deposit while the brokers had transactions.
A nature fit?
A culture clash.
As a broker I hated the banks. I could provide my clients virtually everything a bank could provide at a substantially lower cost.
The banks, with the repeal of Glass-Steagal had the assets and a captive client base to virtually destroy capital formation as we had come to know.
Risk.
Bankers take none.
Brokers take none.
Investment bankers?
Due diligence isn’t free.
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