Republicans Should Take Up ‘Too Big to Fail’

NATIONAL REVIEW ONLINE - The Corner ^ | February 23, 2011 | Lou Dolinar

[neverdem]

The Cato Institute’s Arnold Kling wrote an excellent piece for NR about a year ago on why we need to break up the big banks — a position that, at the time, many would have considered fringe at best. However, in a recent white paper, Thomas M. Hoenig, president of the Federal Reserve Bank of Kansas City, says much the same thing:(PDF)

Today, I am convinced that the existence of too big to fail financial institutions poses the greatest risk to the U.S. economy. The incentives for risk-taking have not changed post-crisis and the regulatory factors that helped create the crisis remain in place. We must make the largest institutions more manageable, more competitive, and more accountable. We must break up the largest banks, and could do so by expanding the Volcker Rule and significantly narrowing the scope of institutions that are now more powerful and more of a threat to our capitalistic system than prior to the crisis.

“Too Big to Fail” is an issue that Republicans shouldn’t duck in 2012. President Obama is in bed with these guys. I don’t know if breaking up the TBTFs is the solution, but Republicans need to shame the president and put daylight between themselves and the crony capitalists responsible for the financial meltdown. They could start by promising not to stock Treasury and other major economic posts with these, if you pardon the phase, malefactors of great wealth.

[neverdem]

IIRC, these Wall Street fat cats shifted their donations back to the GOP in 2010. They donated mostly to the rats in 2006 & 2008.

[NVDave]

Well, there is that problem.

The other problem is that the GOP is simply too stupid to understand modern finance, and they’re still spouting such bullcrap bromides as “free markets” when in fact there are no such thing in modern finance.

[Uncle Ike]

” break up the big banks — a position that, at the time, many would have considered fringe at best “

Since TARP, which prevented just that, was opposed by between 70% and 75% of the electorate, this sentence alone begs the question - what are the author’s definitions of “many”, and “fringe”....

[org.whodat]

I have never understood the damn republicans when it comes to this issue, the banks were fine before Phil gramm wrote and passed the credit modernization act and the follow on legislation. All bought and paid for by ken lay. Then the current BS, written by wall street and their attorneys for the democrats and the republicans stood there with their collective fingers up their butts and did nothing. Current law is nothing more but to keep the big banks big and prevent competition. And make sure that when they screw up they get more bailout money.

[FromLori]

“IIRC, these Wall Street fat cats shifted their donations back to the GOP in 2010. They donated mostly to the rats in 2006 & 2008.”

Did they are there figures that show that? Because...

Barack’s Wall Street Problem is Now America’s

http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/

JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats

http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html

Life long democrat lloyd blankfein has been supporting obama for years and according to Politico will continue to support obama.

http://dyn.politico.com/printstory.cfm?uuid=2A8140B2-C586-FED2-2F5B406630C0DD88

Jamie Demon is his favorite banker and he might talk smack but keep in mind he TOLD obama how he should talk to the bankers and was at the white house after complaining.

Obama, Dimon Met at White House to Talk Economy, Official

http://www.businessweek.com/news/2010-12-08/obama-dimon-met-at-white-house-to-talk-economy-official-says.html

http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html

Those global banks are also being allowed to continue dumping their toxic loans on the taxpayers thanks to obama does anyone really believe they want to give up that gravy train?

http://www.reuters.com/article/2010/01/05/us-usa-housing-bailout-idUSTRE6044YU20100105

The GOP should indeed take up this cause before the greedy creeps finish destroying us.

[neverdem]

Did they are there figures that show that?

Wall St. cash flow imperils Democrats

“Our target ratio for the 2010 cycle is 80-20 Republican,” said Karen Klugh, spokeswoman for the American Financial Services Association.

I know this is Politico, but I remember reading last year about Cornyn, who headed the Republican Senatorial Campaign Committee, wanting those donations. I just saw even Google gave 55 % to the GOP in 2010 while looking for this story.

Wall Street is doing fine. It's Main Street that's hurting. I doubt anything will get done with this Congress, but whoever the GOP nominates for president should go after "too big to fail" banks that stick it to the taxpayer.

[Eyes Unclouded]

“I’ve abandoned free-market principles to save the free-market system” - George W. Bush, 43rd President of the USA.

He was ok with it. Palin was ok with it. Other than Ron Paul (who is not electable) I’m unaware of any major GOP figures who are against the TBTF ideology. It is a bipartisan agreement the only thing to bicker about is how much pork to add to it and where the pork goes.