This posting will be Part 2 of "Too Big to Fail Ba(n)kery" for this journal/ blog. What inspires the posting is an article I read below the other day by Robert Reich ... and the recent criticism towards Presidential candidate Bernie Sanders from those in the Democrat Party, in particular from former Congressman Barney Frank, who left Congress a couple years back and now joined the board of New York based Signature Bank. Sanders is criticized big time for wanting to break up the largest banks, of course these Wall Street entities are also a major source of campaign financing these dayz ... they say Sanders dont know and dont understand banking ... although his actions and work in Washington show different to an extent, he questions the establishment ... and that isnt popular politically, and he also supported Dodd- Frank, which was rushed as an emergency fix in desperate times post recession/ bailout ... unfortunately, politics gets way too much in the way of rational thinking too. Senator Elizabeth Warren is equally disliked by the establishment of her own party (Democrat), and looked at as "radical", but you cant say she doesnt know a thing about banking ... and Wall Street looks at her as the "Devil". So in this posting I want to try to limit the politics/ politicians, and go straight to some of those from Wall Street that have equal concerns about the condition of behemoth banking as well, because if it fails ... it can and will devour our cowering politics and economies, and middle classes that put all their faith and assets in them, as well as bow at their feet as if they're some type of economic saviours. This is another issue that folks dont like to think too much about, besides it's boring and so complex, but it is very importante, because it deals with what makes and breaks our society/ communities, economies and individual lives and families in this era. Why the need to take more action? ... Americans have over $4.6 trillion in 401(k) plans alone invested, the assets of just 4 behemoth banks amounted to 97% of the nation's entire GDP in 2012, this behemoth banking that was once fired at by political mouth pieces in Washington as being too big to fail after the bailouts, are now nearly 40% larger. We live in a buy now/ pay later economy that is massively in debt on a global level, looking at all debt, and our economies are more fragile than what we are led to believe, with all the constant 'happy talk' we are fed, to mention a few points, and YES, I feel they should be downsized/ broken up ... so questioning, changes, and action are in order ... it is NOT lunatic or radical thinking ... it is rational thinking. What about legislation that resembles Glass- Steagall? ... how can you change anything if you dont try, and just constantly say 'it cant be done'?
And I dont want to strictly blame this on the banks, from what I read, I see our Congress as well feeding it (of course through the bankers lawyers), that forced these banks to get much larger with new regulations in Dodd- Frank, and forcing these banks to retain additional higher capital/ assets to be there for any future losses ... positives they also added was aggressive stress testing, and also addressed too big to fail by separating risky activities with the Volcker Rule, regulating their trading in risky transactions, etc ... so the intentions, being after the bailouts and in the recession in desperation were a positive goal, but it's the possible consequences that need to be re- evaluated. The threat that Sanders poses to folks like Wall Street and their polticians, and folks like Jamie Dimon of JPMorgan, is that they fear if he had the power, as well as people he may appoint to critical positions, that he would actually use executive power to 'push it' in high gear, which Dodd- Frank legislation allows to an extent with 'federal regulators' (a little more complex), if serious systemic risks are seen that are a major threat ... some in the political and banking arena fear that a move like this could possibly cost us several billions annually of capital by breaking them up into smaller entities. It is not just the CEO's, institutions, politicians that make this so fragile though, despite what integrity an institution prides itself on ... you have to also look at those many in the trenches that are trading and managing all these retirement accounts, pensions and investors, and questioning their individual integrity, some that even are as high as crackheads on coke (just using powder cocaine instead of rocked) ... this is also why I sure as Hell wouldnt turn over our Social Security to them, along with the market's history and the way it worx now in the global arena. And this problemo in not just America, your EU entities are having these same issues, China has somewhat of an advantage I reckon, since the government owns the majority of all their banks, instead of like here in the west ... the banks own us, eh? {:-) The politicians also may yell "no more bailouts" ... but how likely is that if push comes to shove, eh? ... we get the shit end of the stick every time, with tons of excuses to follow by the same political mouth pieces. I chose some folks and links below out of many I read and viewed to look at why even those in banking question. I want to open with Neel Kashkari, who is head of the Federal Reserve Bank of Minneapolis, and also oversaw TARP (Troubled Asset Relief Program), I would guess that Neel knows a little about banking, eh? Another video with even Goldman Sachs CEO Lloyd Blankfein, who doesnt directly say to break them up, but sure as Hell hints to it. The last video is interesting because it's with Greg Smith who was a former Goldman Sachs VP, that walked out because of what he seen and how investors are cheated and viewed as, who took up another job as President of a Kansas City based firm called Blooom, that are focused on trying to fix 401(k)'s and improve retirement account's performance, then some links for reading I tossed in. This posting will also be included in "DEBT CRISIS PT.1/ THE PAPER DOLL SHOW".
Word Out ....
Watch Neel Kashkari Call for a Breakup of Big Banks ... Thanx to BLOOMBERG
***** ROBERT REICH.ORG: Bernie and the Big Banks ...
***** BLOOMBERG/ QUICKTAKE: Too Big to Fail ... (newsread/ global reference links)
***** ALTERNET: Robert Reich: Sanders Knows How to Break Up the Big Banks- That's Why He Scares the Establishment ... (newsread)
***** USA TODAY: JPMorgan opposes breakup proposal ... (newsread)
Goldman Sachs CEO: Time to Break Up Big Banks| CNBC ... Thanx to CNBC
Goldman Sachs VP explains why he quit ... Thanx to CBS NEWS
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***** PD/ RCJ: "TOO BIG TO FAIL BA(N)KERY" PART 1
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***** RANCH CHIMP JOURNAL "WELCOME" POST
***** RCJ MUSIC/ ART'S HONOUR ROLL SOCIETY (my hand- selected music/ arts picks)
***** RCJ/ THOMAS PICKERING: GOOGLE+ (video posts)
***** THE RESISTANCE/ PERIL'S OF THE POWER POSSE (inspiration for hope & change) ... to be viewed as a "profit- see", not a "prophecy".
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