Break Up The U.S. Banks That Are "Too Big To Fail"

Break Up The U.S. Banks That Are "Too Big To Fail"
(posted with permission from) http://sane-ramblings.blogspot.com/2010/01/break-up-us-banks-too-big-to-fail.html

President Obama calls the biggest bank bonuses of all time "obscene" and is talking with Congress about taxing those bonuses to recover some money for the American people.

But so far Mr. Obama can't even get tougher financial regulations or a new Consumer Protection Agency through Congress for the banking lobby buys the Congressmen.

But Mr. Obama has powers he's not using. Under the Antitrust legislation already on the books, he can direct the Attorney General to file suit to break up the banks that are "too big to fail," for they have become a monopolistic predatory trust.

A century ago, this is what Teddy Roosevelt did against the greedy corporate giants and it's time to do it again. Bank of America, Citigroup, Goldman Sachs, J.P. Morgan Chase and other giants need to be broken up so community banks can compete with them and to stop U.S. consumers from being gauged at every opportunity.

This is how Mr. Obama can show them "change" is coming, rather than just reacting in anger at the fleecing of the American people.

If Congress can find the courage to act, it could re institute the 1933 Glass-Steagall act, which separates banking (making traditional loans) from investment banking (trading stocks, bonds and commodities and creating exotic financial instruments). This act served the public well until it was dismantled several years ago by banking lobbyists.

These banking behemoths then had overwhelming conflicts of interest but it didn't matter to them in their aggressive pursuit of deals and massive executive bonuses, which played a crucial factor in the current economic meltdown. These conflicts of interest still exist today and already, these behemoths are back to their old ways and the sky high bonuses are just one manifestation.

America has been a great nation and it can be again. Taking financial control back from those who bled it dry, including Congress, is a vital step. But it can't happen unless you raise your voice and demand change for no President can accomplish this without your support. Let's encourage this President and give him that support.

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This column is right on!

I don't see why it's enacted immediately.

K&R.

Problem solved.

can hurt... or maybe even kill the economy. They should be nationalized.

http://www.c-span.org/Watch/Media/2010/01/18/HP/A/28552/Steve+Bartlett+Financial+Services+Roundtable.aspx

Your head will explode.
Note how MANY times he refers to Obama's plan
as "PUNITIVE."
Listen to the callers too.

The man is EVIL.

BHN

Instead of enforcing anti-trust laws we've gone the other way now with a reform bill that institutionalizes too big to fail.

Banks and credit unions and savings and loans.

I'm at a credit union...always have been.

Just move your money people. You don't need the government to do anything as this is the one place you have control. Stop complaining and do something.

we can and should all move our money because that gives them less deposits to multiply and gamble with while having the losses replaced from the US treasury. Removing the wall between investment banking and what we think of as banks makes all their nonsense fully backed up by the taxpayer.

This isn't about us fearing the risk of our deposits or feeling we cannot take our business elsewhere but rather the dangerous connection between our government and private institutions borrowing money at 0% or so, loaning to us if inclined at a much higher rate, and/or just using the money in their covert casinos and taking the rewards while socializing the risks and paying themselves very handsomely for the exchange, rewarding the risk taking.

They have set up a system that rewards absurd risk, which would be okay except the people doing the gambling never lose but the taxpayer does. As long as we have too big to fail we can have unlimited September of 08's. This entire sector needs policing and any institution that is too big to fail should and must be broken up and if doing so is too complex or would cause further systemic risk then that institution by definition, must be nationalized.

We are absolutely talking national security here.

...so the night shift might have the chance to comment.