jessescrossroadscafe.blogspot.com / By Jesse / February 20, 2013
This is what happens when one allows the Banks to write their own reform rules in the aftermath of a financial crisis that was spiced with ideology, campaign contributions, and fraud.
JP Morgan, Wells Fargo, Citigroup, and Bank of America, and massively interlocked derivatives positions that are ‘netted out’ for accounting purposes, but which collapse in chain reaction effect when they encounter counter-party failure, frame this unhappy picture. That is the heart of ‘too big to fail.’
And this does not include foreign based banks doing substantial business in the States, that also had to be supported by the Fed during the financial crisis. Or related firms like brokerages, faux banks like Goldman, and camp followers such as AIG and other non-bank financial sector corporations.
To Big To Fail still represents a serious risk to the financial system, and the failure to reform is clear policy error that is owned by the Fed, the Congress, and the Administration.
There will be no sustainable recovery until the Banks are restrained, the financial system is reformed, and balance is restored to the economy.
Thanks to BrotherJohnF