Wall Street, it seems, just can't lose

  • Article by: Bonnie Blodgett
  • Updated: May 11, 2013 - 2:51 PM

But you, average Americans, can and will as the power game plays out.

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pumiceMay. 11, 13 3:32 PM

From the article: "Sen. Sherrod Brown, a Democrat, and Sen. David Vitter, a Republican, offered an exquisitely simple alternative to Dodd-Frank in April. Their bill would make banks with more than $500 billion in assets keep capital reserves of 15 percent, twice the normal amount. That way they can bail themselves out." Exquisitely simple is right--the brown-Vitter solution would have made it in a bank's own financial interest to keep from getting too big. Too bad greed is more powerful than common sense.

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briechersMay. 12, 13 7:27 AM

Ben Bernanke talked about requiring larger banks to hold more capital in a speech this week rather than limiting their size. It is a sound approach to limiting systemic risk. Plus, regulators enforcing 1,000's of pages of arcane requirements is a hopelessly ineffective. Legislators and regulators should focus laws and regulations on the critical few that really make a difference. There are statisticians who can help with this. A capitalization rate that grows as banks grow is one of those critical few.

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JMarvinMay. 12, 1310:22 AM

Of course they cannot lose. They are writing their own rules. D'uh.

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lee4713May. 12, 1310:52 AM

These are the same banksters squeezing the life out of the Minnesota Orchestra. Greedy musicians - heck, they only made $33K in 1983, and the current offer is larger than THAT. The same irrefutable logic that makes them "too big to fail".

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cyberhaze9May. 12, 13 1:04 PM

Excellent article. Inside Job should be required watching in all buisness schools. The power of the financial industry has become pervasive in our society as they attempt to extract "rents" from every financial transaction, every industry and level of government. Few, if any, politicians can afford not to bend to its influence. Thus laws are written that benefit very few, very influencial players, at cost to the rest of us. They can write the laws to be ineffective and these institutions have no loyalty to any government or any group other than elite investors, foreign and domestic. They profit from growth and decline alike and have no fear of being held accountable for their actions. Their startegy, distraction; divide and conquer through media and political influence, has been quite effective at causing the populace to blame eachother for all of our problems rather than focussing on our common enemy which pulls the strings of both parties.

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rms316May. 13, 13 6:22 AM

They write their own rules and rely on the taxpayers to bail them out when they make bad decisions.

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vlombardyMay. 13, 1311:01 AM

5 banks ARE the market. Talk about insider trading....

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