Yellen signals more aggressive stance toward banks

Associated Press ^ | Apr. 15, 2014 2:53 PM EDT | Martin Crutsinger

[Olog-hai]

The Federal Reserve may be about to turn more aggressive in its regulation of the financial system.

Fed Chair Janet Yellen suggested Tuesday that current regulatory rules might not be enough to prevent the kind of risk-taking that triggered the 2008 financial crisis and nearly toppled the entire banking system.

She said the largest U.S. banks may need to hold additional capital to withstand periods of financial stress. Non-banks with deep reaches into the financial system might also need to meet tougher rules, she said. Such firms range from money market mutual funds to private equity and hedge funds. …

[Olog-hai]

Yay, let’s drive all of finance out of the USA; then the USA will be a vacated hollow shell.

[Gaffer]

This administration and it’s lackeys think they can order the sun to shine and the stars to twinkle.

[Olog-hai]

By that logic they’re using, Putin is more powerful than the sun and stars.

[KoRn]

Banks are the primary vehicle for pumping currency into our economy, which is but a shadow of its former self.

If banks are overly restricted, then the Fed might as well print out the paper currency and mail it to the people directly. The foreigners holding much of our debt wouldn’t like that very much. Banks are the ‘middle man’ that keep such things in check, while profiting handsomely in the process.(they skim their cut of it on the way to the end users)

It’s all a pathetic existence/process really, but I guess we can buy food and fuel.

[BitWielder1]

What's the point of stronger rules for banks when the government is breaking rules, imposes hardship and mandates unsound risk taking, for example forces banks to give loans to people who has no chance of paying it back.

[griswold3]

Can you say ‘Bail In’ boys and girls? I thought you could. I wouldn’t put it past these gangsters to try to trigger a bank run such threats. After all, the money you put in the bank isn’t actually yours. See Cyprus

[rjsimmon]

...prevent the kind of risk-taking that triggered the 2008 financial crisis...

Only way that will happen is to keep Democrats out of banking and lending.

[Buckeye McFrog]

Don’t know if you have noticed, but there is a proposal to bail out the Postal Service by allowing them to provide banking services, as they do in much of Europe.

Part of the sales pitch on this is that if a sufficient number of low-income Americans ended up holding postal savings accounts, the Fed could opt to arbitrarily wire direct deposits into them as a stimulus in times of a down economy.

So it appears they are already two steps ahead.

[ronnie raygun]

Criminals are criminalizing banks, they are destroying foundations of capitolism

[longtermmemmory]

IOW tarp was a scam, hamp was a scam, harp was a scam

NOW they are trying to conceal the scam.

The bank cronies should pick out their blindfolds because they were sold out by comrade yellen and Obama. (IOOW the democrats will be the ones taking them out)

[Son House]

Yep, QE3, buy the banks bonds with freshly printed cash.

This step, force the banks to buy back those bonds. (using the depositor’s funds, that is the actual hard earned money put into the banks, probably savings accounts)

Then call it “stronger capital and liquidity standards for large banks”.

[Son House]

In 2007 and 2008, risk-taking in a corner of shadow banking known as subprime mortgages spread to other areas of the system and eventually pushed the country into the worst recession since the Great Depression.

The "Great Depression" blame should be the election of Democrats in 2006 mid-terms, plus the obstructionist Democrats in the Senate who refused to do something when Bush and McCain were howling about it early on in the first W. Bush term.

[Fledermaus]

Ah, moron, the FEDS created the 2008 financial meltdown with their greed and left wing politics.

[Olog-hai]

They were a huge part of it. The other part had to do with entanglement of same with foreign banks.

[Georgia Girl 2]

Yes. Game, set, match.

[Georgia Girl 2]

Yes. Game, set, match.

[KoRn]

Our country as WE know and love it is basically over now.

All that’s left is the formalities of the decline, realization, and the reckoning. It’s all we can do to get a half ass’d candidate on the ballot, let alone one that will get elected and turn this mess around. At best, we may be able to slow down the process, while preparing ourselves and those whom we care about by planning accordingly.

Our country is now a terminal ‘cancer patient’ that’s facing eventual death. The precise date is unknown, but it WILL happen, and we’ll need to be ready.