Richard Fisher, Top Fed Official: Too Big To Fail Lives On, Only Way Out Is To Shrink Megabanks

[laughingliberal]

A top Federal Reserve official blasted the Senate's financial reform bill Thursday night, arguing that it does little to end the perception that megabanks are too big to fail while lambasting the regulators and policymakers who "tiptoe" around financial behemoths and who have fostered the growth of "indestructible" large banks.

The scathing speech, delivered by Federal Reserve Bank of Dallas President and CEO Richard W. Fisher, calls into question the Obama administration's entire approach toward reforming the nation's financial system and the way the government regulates it. The administration has largely pushed initiatives, adopted by the Senate, that would place more power in the hands of regulators yet would leave much of Wall Street unchanged.

Fisher challenged the faith that trusting the nation's financial regulators to dissolve large, systemically-important financial institutions the next time they near collapse will forever end Too Big To Fail.

The Dallas Fed chief served as a top trade official during the Clinton administration and assumed his spot atop the regional Fed bank in 2005. In his speech Fisher took a swipe at a theory espoused by President Barack Obama's top economic adviser Larry Summers, who in defending megabanks and resisting calls for them to be broken up said in April that large banks ensure the stability of the financial system. Summers also suggested that many simultaneous small-bank failures could "generate more need for bailouts." ...http://www.huffingtonpost.com/2010/06/04/too-big-to-fail-lives-on-richard-fisher_n_600133.html

[Trillo]

1. It appears Obama has made some poor choices in his selection of corporatists

to surround himself with.

He could fire them and change such appointments.

[OHdem10]

2. Leo Hendry (former Obama advisor) commented that the bill is

too weak and we are setting the stage for a repeat crisis.

He was so concerned about the jobs report today that he
predicts we are in a jobless recovery. His personal opinion
is the overall Unemployment is at least twice what is being
reported.

I digress, on the too big to fail, he believes the investment
banks and commercial banks must be separated. "Wall Street will
not change its spots." (Unless they are forced to change).

[laughingliberal]

5. +1000 nt

[jgraz]

3. Or... you could just eliminate the megabanks.

Remind me again why we pay to print the money so we can give it to these jokers who refuse to lend it back to us?

[girl gone mad]

4. Correct.

For all intents and purposes, the banks create money out of thin air - something the government is perfectly capable of doing on its own, thank you very much.