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What Must Be Done About Financial Institutions...
2
Still using the ultra passive voice on Obama here.....
"But Obama will not do it here. Indeed, he lavishes special attention on ex Goldman Sachs types like Corzine instead of stumping for a public option," now, that would be the active voice.
"But Obama will not do it here. Indeed, he lavishes special attention on ex Goldman Sachs types like Corzine instead of stumping for a public option," now, that would be the active voice.
3
Chuck,
Maybe so, but that's not how US regulators see it. They prefer to do the opposite and force larger banks to acquire large failing banks.
Case in point: Bank of America's acquisition of Merrill Lynch.
Even though he expressed misgivings about the acquisition of Merrill Lynch Federal officials pressured Bank of America CEO Kenneth Lewis to proceed with the deal or face losing his job and endangering the bank's relationship with federal regulators.
Richmond Federal Reserve President Jeffrey Lacker threatened that if the acquisition did not go through, and later Bank of America were forced to request federal assistance, the management of Bank of America would be "gone".
Ain't regulation grand?
Left to the devices of a free market Merrill Lynch would have failed or been broken up into smaller banks (like you want). Instead it was rolled into an even larger bank by its regulators.
Maybe so, but that's not how US regulators see it. They prefer to do the opposite and force larger banks to acquire large failing banks.
Case in point: Bank of America's acquisition of Merrill Lynch.
Even though he expressed misgivings about the acquisition of Merrill Lynch Federal officials pressured Bank of America CEO Kenneth Lewis to proceed with the deal or face losing his job and endangering the bank's relationship with federal regulators.
Richmond Federal Reserve President Jeffrey Lacker threatened that if the acquisition did not go through, and later Bank of America were forced to request federal assistance, the management of Bank of America would be "gone".
Ain't regulation grand?
Left to the devices of a free market Merrill Lynch would have failed or been broken up into smaller banks (like you want). Instead it was rolled into an even larger bank by its regulators.
4
Earlier today McClatchy News reveals 5 month investigation of Goldman Sachs market manipulation, knowingly peddling worthless securities to retirement funds, etc.: http://www.tinyurl.com/mclgoldman
5
Too damn right, Charles. Bigger is not, it turns out, better. (Joseph Stiglitz has many interesting and intelligent things to say on the subject of what went wrong and why they were stupid not to fix it when they had a chance.)
You'd swear that the bailout would have given people an incentive to fix shit in the banking sector when they had the chance. Say, oh, 200 BILLION reasons.
You'd swear that the bailout would have given people an incentive to fix shit in the banking sector when they had the chance. Say, oh, 200 BILLION reasons.
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