Here we go again.
1
It's important not to forget the Dem's role in precipitating the crash (repeal of Glass Stegal by Clinton/Summers) as well as the Dem response to the crash - bailout, govt facilitated consolidation of all assets, no criminal prosecutions, and now far too big to fail. Remember, Obama had supermajorities in the House and Senate in 2009-10 and did not break up the banks, did not pass a financial transaction tax, and when passed Dodd-Frank - did not complete all the rule making even though his regulators has six full years to do so.
And the Dems wonder why Bernie is so popular?
Word to the wise - put your money in your local federally insured credit union.
And the Dems wonder why Bernie is so popular?
Word to the wise - put your money in your local federally insured credit union.
3
The FED had better tightening the capital requirements of the banks until FED's balance sheet normalizes from the current $4.5 trillion. It is unwise for FED to let banks be free from the capital building in the current excess liquidity environment that FED has created. We don't know how FED's unwinding of its balance sheet influence our economy and financial environment. Current level of equity formation by the banks is nothing if they were to go bankrupt like the situation in 2008. It is obvious that the banks and the Wall Street continue to expect government rescue in such situation. In the meantime, bank executives will enjoy increase of compensations and the investors will enjoy increase of dividends even though millions of Americans can't recover their personal damages from the 2008 financial crisis.
This does not bode well for average Joe and Jane Main Street. just a matter of time before Big Bank collapses the economy yet again.
Onward and upward with the oligarchy! The 1% get even more insanely rich and the rest get trickle down. Is this a system?
3
If Donald and his band of 'Let's help the ultra-rich' cohorts, bankrupts me by having my bank & stock market holdings crash into nothing again... I'll start borrowing from my Trumper relatives. They'll owe me bigly.
Everything is great again! Sounds like Milton Friedman right before the Great Recession. The big boys too large to fail need to be nationalized, and let the CEO's retire to their ranches in Wyoming and Montana. Either that or jail time.
Big Banks have learned absolutely nothing from the last debacle, except that they can get way with it. Where do they come up with these "industry experts" ...I mean, uh, "shills"?
Our ecnomy and savings instruments are not ATMs. But Big Banking, and their crooks at the top, are going to try to make another major withdrawal as soon as they think they can!
Our ecnomy and savings instruments are not ATMs. But Big Banking, and their crooks at the top, are going to try to make another major withdrawal as soon as they think they can!
“Even if bankers all started behaving like drunken sailors tomorrow, it would take years before problems arose,” Mr. Kotowski said. “And with the stress tests by the Fed every year, and the memory of the fines, they’re not about to do that.”
And therein lies the problem. History is a guide for future but will be conveniently forgotten. Wall Street and the bankers will soon enough find their new ways to corruptly make millions. And given how tech has speeded up every aspect of our lives it won't take years this time. Wondering if I go w my grandfather's depression era method of hiding cash in the barn?
And therein lies the problem. History is a guide for future but will be conveniently forgotten. Wall Street and the bankers will soon enough find their new ways to corruptly make millions. And given how tech has speeded up every aspect of our lives it won't take years this time. Wondering if I go w my grandfather's depression era method of hiding cash in the barn?
I moved my assets from Citibank to a credit union during the financial meltdown and have never regretted it. The service is incomparably better, and I haven't had to pay a fee for anything yet. Can't imagine ever switching back to a big bank.
9
I worked in banks in the 70s, when tellers couldn't close their windows and go home if they were out of balance, and a night shift came in to verify every check's signature. The current bunch running our big banks aren't bankers. They're lazy grifters. They don't know their communities, they don't know their depositors, they can't evaluate a new local project to save their lives. They know their country clubs and social circles. They want the government and its trade agreements to collect on their bad bets, even if it requires sending in the Marines. (Their kids never join the military.) They like high profits on products that produce no social benefit. I keep all my money in <$250K accounts at various institutions and look for overseas investments where the banking rules require my money be separated from the bank's bets. I tell my family and friends that if an American banker knocks swearing they have a great deal for them, to slam the door in his face. And after 2008, no one can say they weren't warned about these guys. They're greedy nasty frauds cashing in on their firm's reputation, who then move on to the next bank after they've destroyed it.
1
Yeah, what he said!
The last three paragraphs say it all:
----------
For his part, Mr. Kotowski believes that memories of Lehman, plus the enormous fines paid to regulators, will serve as a check on appetite for risk for years to come.
“Even if bankers all started behaving like drunken sailors tomorrow, it would take years before problems arose,” Mr. Kotowski said. “And with the stress tests by the Fed every year, and the memory of the fines, they’re not about to do that.”
It was painful for banks to give up the revenues and profits that came with added risk, Mr. Kotowski said, “but having made that adjustment, there’s no point in going back to the old world.”
-----------
I'd like to know from the author if the research analyst who made these statements was being serious. As soon as I finished this article, I laughed out loud and thought, "The banking industry has learned absolutely nothing and will do exactly the same thing again." Need to confirm that none of my investments are anywhere near Oppenheimer...
----------
For his part, Mr. Kotowski believes that memories of Lehman, plus the enormous fines paid to regulators, will serve as a check on appetite for risk for years to come.
“Even if bankers all started behaving like drunken sailors tomorrow, it would take years before problems arose,” Mr. Kotowski said. “And with the stress tests by the Fed every year, and the memory of the fines, they’re not about to do that.”
It was painful for banks to give up the revenues and profits that came with added risk, Mr. Kotowski said, “but having made that adjustment, there’s no point in going back to the old world.”
-----------
I'd like to know from the author if the research analyst who made these statements was being serious. As soon as I finished this article, I laughed out loud and thought, "The banking industry has learned absolutely nothing and will do exactly the same thing again." Need to confirm that none of my investments are anywhere near Oppenheimer...
20
"Bust 'Em Up"!
This gutless system had an opportunity to try to level the playing field not only for banking/consumer relations, but for our system of justice!
Our gov failed and the people did not have the will or understanding to push for total banking change.
Now, the Fed wants us to believe the "....banks are healthy again"! Our "democracy" continues to descend into, "Hypocrisy"!!
This gutless system had an opportunity to try to level the playing field not only for banking/consumer relations, but for our system of justice!
Our gov failed and the people did not have the will or understanding to push for total banking change.
Now, the Fed wants us to believe the "....banks are healthy again"! Our "democracy" continues to descend into, "Hypocrisy"!!
11
How gracious of the Federal Reserve (which is neither Federal nor has any reserves) to declare that the debt capitalist casino is open with sufficient "chips" available to continue gambling............while the 13 billion in IOUs from the last gaming "financial instrument" baccarat bubble remain unpaid......the "monopoly money" printing presses must have produced a surplus............the news has got Wall Street, roulette wheels spinning, in anticipation with the new relaxed Trump rules designed to increase house profits.
This is a high roller moment to multiply the accummulated IOUs and get out,converting all winnings to real property and treasures,........because the next bubble is explosively close!
This is a high roller moment to multiply the accummulated IOUs and get out,converting all winnings to real property and treasures,........because the next bubble is explosively close!
5
The very thought of poor Lloyd Blankfein trying to squeak by on $8 million a year (after Paulsen made his horrid 'bank' 100% whole in 2008) just tears me up. I am so glad to hear that his so-called compensation has recovered along with all the other Wall Street criminals. Go America!
8
Risk is a spectrum. They could require that each mortgage borrower put 20% down in cash, have an 800 credit rating, and be able to make the payments with 10% of his income. Or they could give mortgages to anyone who asks, regardless of income, assets, or whether they'd just got out of jail.
Somewhere in between is good. But where?
Somewhere in between is good. But where?
1
I hear a murder of crows outside my bedroom window. Every spring, a pair of birds build a nest on a wreath on my front porch. This year it was a pair of mourning doves. Gracefully, they carried little twigs and dried grasses to build their home. Then there were two tiny ivory eggs sitting atop the nest. It was joyful. The mother sat patiently. One day when I arrived home, the porch was covered with blood and white feathers. A struggle was in evidence and the little eggs sat vulnerable. I have moved the wreath and cringe when I hear the crow bankers. I know what they have done.
7
Jamie Dimon's $28 million. Of course, it's not a question of his need. It's value creation. Remember that JPMorganChase was one of the good banks during the financial crisis (e.g., the vehicle for dealing with Bear Stearns).
1
As usual the oligarchs recover well at the expense of the rest. Does anyone really need $28 million a year to live well?
22
So, 10 banks now hold 80% of banking assets. The risk posed by "too big to fail" has increased since the banking system imploded in 2008 and wiped away the jobs, houses and retirement savings of millions of Americans.
So, how do Republicans in Congress address this threat? Earlier this month they gutted much of Dodd-Frank, which was put in place to protect us from such catastrophic failure again. Specific to this article, Republicans deleted the provision of Dodd-Frank that allows the Fed to require an "orderly dissolution of assets" when a major bank is failing. And to make sure the Fed won't be able to dissolve a failing bank they put the Fed direct political control.
That will surely help us when the boys on Wall Street do their cocaine and Cosmos parties again.
So, how do Republicans in Congress address this threat? Earlier this month they gutted much of Dodd-Frank, which was put in place to protect us from such catastrophic failure again. Specific to this article, Republicans deleted the provision of Dodd-Frank that allows the Fed to require an "orderly dissolution of assets" when a major bank is failing. And to make sure the Fed won't be able to dissolve a failing bank they put the Fed direct political control.
That will surely help us when the boys on Wall Street do their cocaine and Cosmos parties again.
24
Stress tests only work if the assumptions used are accurate. I would not count on regulators anticipating the source of the next financial crisis. It may not even involve regulated banks. After all, the 2008 crisis started with unregulated mortgage companies (Countrywide Financial, Taylor, Bean & Whitaker, et al.)
IMHO, the next financial crisis will be due to either unfunded state government pensions or student loans - or both. What are regulators doing to address those two issues?
IMHO, the next financial crisis will be due to either unfunded state government pensions or student loans - or both. What are regulators doing to address those two issues?
19
The stress test is extremely comprehensive and transparent. If you want to learn about the process, the test and the results, there are documents and filings that you can easily obtain online that show you everything. Study them and then you can decide if you think the test that was performed is appropriate and sufficient...or not.
1
Yet another green light for further speculation. And why not? The dutiful public is ever standing by to bail out these crooks.
31
This is truly scary. These are the people who crashed the economy and were bailed out by taxpayers. Has it only taken them 10 years to forget what they did to us, and to return to their old ways - enabled by the GOP and their incessant ideological march? Now that we have a child-man as president, we could truly be in serious trouble within four years.
16
It didn't take 10 years. They were back in full business for leveraged loans for business acquisitions by 2012.
1
Take a look at the stress test itself (the filings are all available online for you to study) and then you can decide if you think the banks have "returned to their old ways." But without having read the filings, how do you know? I think if you read the documents, you will find that while plenty of risks still exist, many have been addressed and the system is far safer than it was in 2008.
The Fed says our banks have good health,
Are safe for the storing of weath.
What they overlook
Is that the poor schnook
Who trusts them grows poorer by stealth.
Are safe for the storing of weath.
What they overlook
Is that the poor schnook
Who trusts them grows poorer by stealth.
13
As Yogi taught us....it's deja vu all over again.
When Glass Stegall was repealed in the late 1990s a Senator from the Dakotas eerily predicted within a year of it happening (app. 10 yrs later) the 2008 financial meltdown.
There is a video of it online. I highly recommend everybody view it especially any Trump supporter reading this story.
The only thing blocking another financial meltdown..is..well....the banks...ie policing themselves.
That is like the wolves guarding the sheep.
When Glass Stegall was repealed in the late 1990s a Senator from the Dakotas eerily predicted within a year of it happening (app. 10 yrs later) the 2008 financial meltdown.
There is a video of it online. I highly recommend everybody view it especially any Trump supporter reading this story.
The only thing blocking another financial meltdown..is..well....the banks...ie policing themselves.
That is like the wolves guarding the sheep.
19
Why does Wells Fargo continue to get Kid Glove treatment? They stole from their customers!! No one went to jail, they paid a piddling fine and walked away. When there is an institutional policy that makes it acceptable to steal from your customers, that institution should be shut down. By our failure to do so we are sending the clear message: "It is OK to steal from your customers. You will pay a fine (the cost of doing business) and carry on. None of your officers will go to jail."
The only banks that are shut down are those that lose money, if you steal from your customers you get slapped on the wrist. What does that say about our priorities and our morals?
The only banks that are shut down are those that lose money, if you steal from your customers you get slapped on the wrist. What does that say about our priorities and our morals?
27
So, the teaser for this article says:
Big Banks Get an All-Clear. And That Stokes Concern.
The Federal Reserve’s passing grade for all 34 institutions will have major consequences. The first: Surging bank stocks.
Nobody every said that the NYT understood economics but just by simple logic you`d think that some editor would see the inherent contradiction between all that concern that is being stoked and the clear optimism from `surging bank stocks.
Big Banks Get an All-Clear. And That Stokes Concern.
The Federal Reserve’s passing grade for all 34 institutions will have major consequences. The first: Surging bank stocks.
Nobody every said that the NYT understood economics but just by simple logic you`d think that some editor would see the inherent contradiction between all that concern that is being stoked and the clear optimism from `surging bank stocks.
1
Here comes another crash!
And the crooks who send
us over the edge again
Will slither away with
our billions and
the pols will
put hands in
pockets, the
same pockets
the bankers
secretly slipped
notes into
and whistle.
No jail time
for white collar
crime. Just
look at trump
the biggest
white collar
crook.
Look!
And the crooks who send
us over the edge again
Will slither away with
our billions and
the pols will
put hands in
pockets, the
same pockets
the bankers
secretly slipped
notes into
and whistle.
No jail time
for white collar
crime. Just
look at trump
the biggest
white collar
crook.
Look!
17
The idea that the regulatory process has loosened just because so many banks passed the test is simply wrong. The banks are just better capitalized than ever before. The regulatory process is as strong as it was in years past. The banks just passed.
3
"It was exactly 10 years ago this month, as the housing bubble collapsed, that the first cracks in what would nearly bring down the country’s economic edifice appeared."
In my opinion, NYC looks like it's headed for another collapse repeat with all of massive real estate construction projects occurring in all boroughs. Who is going to rent or buy these apartments when they are ready for occupancy in the next year or so?
In my opinion, NYC looks like it's headed for another collapse repeat with all of massive real estate construction projects occurring in all boroughs. Who is going to rent or buy these apartments when they are ready for occupancy in the next year or so?
12
I can't speak to NYC, but I can tell you that we are beginning to see a slowdown of Retail Sales in parts of San Diego. Some of the people with money and financial savvy are starting to hold back, combine that with the fact that our 'recovery' is getting long in the tooth and instability in Washington. . . . .
5
Why didn't Wells own internal "consumer watchdogs" discover that scam before the CFPB did? And, why didn't Bank Management, up and down the line, notice a significant spike in new accounts? That's what good managers do? Dis they wish to find it?
Oh, and the mortgages scams--from the banks, Fannie/Freddie, investment bankers and rating agencies--was even much, much worse!
Check the latest bank scams: www.cfpb.gov.
https://thetruthoncommonsense.com