In These Times: Too big to regulate, the banks need to be broken up

[marmar]

Out of Control
Too big to regulate, the banks need to be broken up.

By David Moberg


The big banks are back, larger than ever, with profits and stock prices soaring and huge bonuses expected—thanks to taxpayers and the federal government.

That might seem like unabashed good news, but it’s not. The real economy is deeply troubled, with unemployment and foreclosures still rising. Hefty, if uneven, profits at the biggest banks won’t save Main Street. And the rosy impression that the financial system has recovered strengthens the industry’s hand in blocking efforts to prevent another, possibly worse crisis from hitting in the near future.

The most obvious battle is over Democratic proposals to strengthen regulation of the financial sector. But the bigger challenge—one neither Congress nor the administration has fully engaged—is to weaken Wall Street’s political, economic and ideological grip on the country. This would include shrinking the financial sector and its biggest players while redefining the public goals of finance itself.

Banking and finance lobbyists, calling in chits from their huge contributions to politicians in both parties, were busy in recent months trying to kill—or at least weaken—the first significant reform plans: a new Consumer Financial Protection Agency and regulation of financial derivatives. ..............(more)

The complete piece is at: http://www.inthesetimes.com/article/5196/out_of_control

[jwirr]

1. IMO that is the single most effective thing President Obama could

do at this point in this crisis. LOCALIZE.

[lonestarnot]

2. K & R

[Bitwit1234]

3. Didn't we used to have a law about monopolies.

and that business could not buy up all the smaller ones and take over.

[OHdem10]

4. We seriously should separate Investment Banks from Commercial

banks. Let the Hedgers and other big investors gamble with their
own money. If they get heady on gambling only their banks will be
heading over the cliff. The rest of us will have our funds safe.
I do not know if you have to bring back Glass -Steagall but we
must separate the Investment Banks from Commercial Banks.