General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCan US banks be trusted to self-regulate?
Several leading politicians in the US Congress are demanding that federal regulators strengthen proposed banking rules and scrutinise trading more closely. The call follows a $2bn trading loss disclosed last week by JPMorgan Chase, the country's biggest bank.
Heads have already started rolling, with the resignation on Monday of Ina Drew, the bank's chief investment officer, who some regard as the most powerful woman on Wall Street.
That bad trade strikes at the heart of the debate about Wall Street regulation. The loss will not cause the bank to collapse, nor will it need a government bailout. But the news has intensified the belief among some that banks should not, or perhaps cannot, regulate themselves.
Since the most recent economic meltdown, which many say was caused by financial institutions taking excessively risky bets, the US government has tried to reform banking regulation in a piece of legislation known as The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010.
http://www.aljazeera.com/programmes/insidestoryamericas/2012/05/201251593733577549.html
- Robert Scheer, the editor-in-chief of news website Truthdig.com
OnyxCollie
(9,958 posts)But I expect much persuasion, from both parties, to the contrary.
JFN1
(2,033 posts)Can a heroin addict be trusted to safeguard a pound of heroin?
I. Think. Not.
deadinsider
(201 posts)All we see here is the most obvious example of the Crises of Capitalism.
The banks wanted to deleverage from 1-10 to 1-30; they lobbied to change whom they could borrow to (see predatory lending, which leads to higher interest rates for them); they fought for 21st century financial instruments for the past 30 years; they broke down the barriers between commercial and investment banks.
Smaller banks, that can only leverage 1-5, and at most 1-10, certainly can be trusted more than these gluttons.
Move your savings to a credit union. Union is in the name for a reason.
intaglio
(8,170 posts)But if your thread title is a serious question ...
tabatha
(18,795 posts)Last edited Sun May 20, 2012, 05:58 PM - Edit history (1)
read by people from all over the world, who may not know much about US banking, and need to be informed.
There is a dearth of educated, informed people in this world, and any attempts to do so should not be ridiculed.
I posted it because it is from outside of the US, and is sorely lacking from Faux News.
Egalitarian Thug
(12,448 posts)meow2u3
(24,775 posts)Short answer: no
mhh i don't know....
cherokeeprogressive
(24,853 posts)rufus dog
(8,419 posts)socialist_n_TN
(11,481 posts)shit in a toilet? Short answer? NO!
The Magistrate
(95,264 posts)txoctodem
(11 posts)to regulate themselves also leave a tri tip-roast on the counter unguarded with their labrador retriever alone in the room? I have learned to my regret that this is unfounded trust.
marmar
(77,114 posts)LiberalAndProud
(12,799 posts)Greenspan Concedes Error on Regulation
http://www.nytimes.com/2008/10/24/business/economy/24panel.html?_r=1
This should have been a poll.
hobbit709
(41,694 posts)meow2u3
(24,775 posts)Can a fox be trusted to leave the chickens alone?
The short answer: no. The long answer: hell, no!