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'Too big to fail' banks need $1.2 trillion
CNN ^ | November 9, 2015 | Matt Egan

Posted on 11/09/2015 10:21:49 AM PST by PAR35

Big banks better start looking under the couch cushions. They need to come up with $1.2 trillion to fortify themselves from the next financial meltdown.

Global financial regulators Monday issued new rules that are designed to prevent a failing big bank from dragging down the entire financial system. That's what happened in 2008 when Lehman Brothers imploded, sparking the worst financial crisis since the Great Depression.

...

Wells Fargo (WFC) and JPMorgan are the U.S. banks most vulnerable to the new G20 rules, Morningstar's Baker said. He estimates Wells Fargo may need to raise up to $30 billion, while JPMorgan could need $25 billion.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government
KEYWORDS: financialcrisis; tbtf; toobigtofail
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To: PAR35
Oh goody! Seems like every increase in reserve requirements is designed to take capital and liquidity out of the economy just when Republicans come into power.

Shocks the hell out of me.

21 posted on 11/09/2015 10:50:02 AM PST by Carry_Okie (The tree of liberty needs a rope.)
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To: zzwhale
too big to fail is nonsense capitalism involves FAILURE

The idea behind this latest rule is to reduce their leverage and give them such a large cushion that they can't fail. It's mostly overkill and will slow the economy, so par for the course for Obama.

when people wake up AND DEMAND A FED AUDIT.... wait till you see how much money went to FOREIGN BANKS.... FROM YOUR TAXPAYER WALLET

The Fed gave zero "FROM YOUR TAXPAYER WALLET" to anyone, foreign or domestic.

22 posted on 11/09/2015 10:55:45 AM PST by Toddsterpatriot ("Telling the government to lower trade barriers to zero...is government interference" central_va)
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To: gr8eman

Because they said so. And they want ultimate control of your money ... which they have ... and we let them have.

Ultimately it is our fault for going along with such ‘rules’ about our own money to begin with.


23 posted on 11/09/2015 10:58:42 AM PST by Lorianne
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To: PGR88

The Federal Reserve, whose responsibility it is to protect Wall Street, not average Americans, will no doubt come up with a way to strip mine the middle class to help bail out their member bank.”

And if the Federal Reserve doesn’t do it, the Republican controlled Congress will.


24 posted on 11/09/2015 11:03:30 AM PST by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: jwalsh07

Exactly. We can even mint a couple of trillion dollar coins, (made of platinum after all platinum ain’t cheap) slap Obama’s smug mug on ‘em, and call the problem “solved” right there.


25 posted on 11/09/2015 11:12:34 AM PST by FourtySeven (47)
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To: houeto

Must impoverish the middle class in order to make them beg for more government control over their lives.
First, they’ll need to get us to ‘swish’ like the Swedes. All that money in the banks, who could resist?


26 posted on 11/09/2015 11:13:35 AM PST by griswold3 (Just another unlicensed nonconformist in am dangerous Liberal world.)
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To: Lorianne

Yes


27 posted on 11/09/2015 11:18:22 AM PST by gr8eman (Don't waste your energy trying to understand commies. Use it to defeat them!)
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To: PAR35

1.2T? No problem. Either Congress could pass legislation or POTUS could give pardon/amnesty to all the overseas/untaxed money. $3T sitting overseas because of our oppressive tax system.


28 posted on 11/09/2015 11:19:24 AM PST by DCBryan1 (No realli, moose bytes can be quite nasti!!)
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To: gr8eman
Which is why I’m cashing out all of my 401ks and paying the penalty

Dumb move. Really Dumb. Don't do it until you get the final figure from your CPA. Its not just a 10% penalty.

29 posted on 11/09/2015 11:20:17 AM PST by DCBryan1 (No realli, moose bytes can be quite nasti!!)
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To: drypowder

I’ve become convinced that this country is going to elect the next Pol Pot or Hitler on promises to hold televised public floggings of bankers, live from Yankee Stadium.


30 posted on 11/09/2015 11:26:06 AM PST by Buckeye McFrog
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To: Buckeye McFrog

And CEO’s.


31 posted on 11/09/2015 11:29:52 AM PST by miliantnutcase
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To: gr8eman

Because it’s the IRS.


32 posted on 11/09/2015 11:53:04 AM PST by wastedyears (uchikudake - toki michite - ikiru tame - tokihanate)
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To: PAR35

If banks do not lend on their deposits, as they used to do, and many banks have very little in the way of deposits now, how the heck does the banking system work? Remember when banks would do almost anything to get deposits? Free toaster ovens and other items? Now they seem annoyed if you have a savings account. If they are not lending on deposits, it must all be a house of cards.


33 posted on 11/09/2015 11:56:44 AM PST by rey
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To: rey
how the heck does the banking system work?

Slice and dice and create derivatives. I'll take interest only months 72 to 86 of that package of 30 year mortgages.

34 posted on 11/09/2015 11:59:57 AM PST by PAR35
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To: PAR35

[$1.2 trillion]

What? No problem? We can come up with that by morning. Start the presses.

In fact, I may have that much on me right now. Let me check my pockets.


35 posted on 11/09/2015 12:30:20 PM PST by SaveFerris (Be a blessing to a stranger today for some have entertained angels unaware)
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To: rey

Banks still lend on their deposits. The problem is that deposits tend to be pulled out of banks at the times when banks need them most (recall the scene from Its a Wonderful Life). To make them less susceptible to liquidity issues, the fed wants them to take on more long term debt which is more stable. Also, if a bank does eat through its equity, losses will then fall on these creditors and not on depositors, who the FDIC then has to make whole.


36 posted on 11/09/2015 12:34:08 PM PST by oincobx
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To: gr8eman

[but why the penalty also?]

So they can hold back a place to rob like Illinois did with their lottery money they have to re-budget for now?


37 posted on 11/09/2015 12:34:08 PM PST by SaveFerris (Be a blessing to a stranger today for some have entertained angels unaware)
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To: PAR35

Good thing they won’t use that $1.2T to do banking things like loan money to businesses to create jobs.

Can’t have that.

People might become independent. Too much freedom is dangerous to the Uniparty.


38 posted on 11/09/2015 12:34:40 PM PST by Uncle Miltie ("The bipartisan project is to destroy conservatism" .. "Cruz is a thoroughbred conservative." - Rush)
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To: rey
If banks do not lend on their deposits,

The lending they do is of their deposits.

and many banks have very little in the way of deposits now,

Our banks have over $2 trillion in excess reserves. Call it extra deposits.

39 posted on 11/09/2015 12:36:01 PM PST by Toddsterpatriot ("Telling the government to lower trade barriers to zero...is government interference" central_va)
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To: PGR88
I seriously doubt they need any bailing out.

Even if so, they should be allowed to crash. Trouble with that though, is that they'll figure out a way to strip people of investments, then keep all the loot when things rebound.

Can we just line them up against the walls and shoot them this time?

40 posted on 11/09/2015 12:54:52 PM PST by BlueDragon
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