I've got to agree with this guy. Many of these big investment banks were actually created with our own Federal Reserve system's blessing and compliance. Its said they are "too big to fail" but if that is true then we should bust them up into smaller entities so that insurance is separated from banking which is separated from investments, etc etc.
Here is what Thomas M. Hoenig, president of the Federal Reserve Bank of Kansas City, said:
Here is what Thomas M. Hoenig, president of the Federal Reserve Bank of Kansas City, said:
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.
http://www.nationalreview.com/corner/260539/republicans-should-take-too-big-fail-lou-dolinarThe 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.