We urge readers to support the Too Big To Fail Petition: maybe one of these days kalamari will finally be served. Sen. Bernie Sander's Petition: Petition to Treasury Secretary Timothy Geithner Too Big to Fail is Too Big to Exist Financial institutions that are "too big to fail" played a major role in undermining the American economy and driving our country into a severe recession. Financial institutions that are "too big to fail" put taxpayers on the hook for a $700 billion bailout and more than $2 trillion from the Federal Reserve in virtually zero interest loans. Huge financial institutions have become so big that the four largest banks in America (JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup) now issue one out of every two mortgages; two out of three credit cards; and hold $4 out of every $10 in bank deposits in the country. Just five banks in America (JP Morgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley) own a staggering 95% of the $290 trillion in derivatives held at commercial banks. Derivatives are risky side bets made by Wall Street gamblers that led to the $182 billion bailout of AIG, the $29 billion bailout that allowed JP Morgan Chase to acquire Bear Stearns, and the collapse of Lehman Brothers. The concentration of ownership in the financial services industry has resulted in higher bank fees and interest rates that consumers are forced to pay for credit cards, mortgages and other financial products. No single financial institution should be so large that its failure would cause catastrophic risk to millions of American jobs or to our nation's economic well-being. .....
Sen. Bernie Sander's Petition:
Petition to Treasury Secretary Timothy Geithner Too Big to Fail is Too Big to Exist Financial institutions that are "too big to fail" played a major role in undermining the American economy and driving our country into a severe recession. Financial institutions that are "too big to fail" put taxpayers on the hook for a $700 billion bailout and more than $2 trillion from the Federal Reserve in virtually zero interest loans. Huge financial institutions have become so big that the four largest banks in America (JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup) now issue one out of every two mortgages; two out of three credit cards; and hold $4 out of every $10 in bank deposits in the country. Just five banks in America (JP Morgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley) own a staggering 95% of the $290 trillion in derivatives held at commercial banks. Derivatives are risky side bets made by Wall Street gamblers that led to the $182 billion bailout of AIG, the $29 billion bailout that allowed JP Morgan Chase to acquire Bear Stearns, and the collapse of Lehman Brothers. The concentration of ownership in the financial services industry has resulted in higher bank fees and interest rates that consumers are forced to pay for credit cards, mortgages and other financial products. No single financial institution should be so large that its failure would cause catastrophic risk to millions of American jobs or to our nation's economic well-being. .....
Too Big to Fail is Too Big to Exist
Financial institutions that are "too big to fail" played a major role in undermining the American economy and driving our country into a severe recession.
Financial institutions that are "too big to fail" put taxpayers on the hook for a $700 billion bailout and more than $2 trillion from the Federal Reserve in virtually zero interest loans.
Huge financial institutions have become so big that the four largest banks in America (JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup) now issue one out of every two mortgages; two out of three credit cards; and hold $4 out of every $10 in bank deposits in the country.
Just five banks in America (JP Morgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley) own a staggering 95% of the $290 trillion in derivatives held at commercial banks. Derivatives are risky side bets made by Wall Street gamblers that led to the $182 billion bailout of AIG, the $29 billion bailout that allowed JP Morgan Chase to acquire Bear Stearns, and the collapse of Lehman Brothers.
The concentration of ownership in the financial services industry has resulted in higher bank fees and interest rates that consumers are forced to pay for credit cards, mortgages and other financial products.
No single financial institution should be so large that its failure would cause catastrophic risk to millions of American jobs or to our nation's economic well-being.
.....
Just five banks in America (JP Morgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley) own a staggering 95% of the $290 trillion in derivatives held at commercial banks.
That is why an edict from the government that no CDS without an underlying 'insurable interest' would be enforceable from a set date would not really affect the rest of the world that much.
A sort of 'truth and reconciliation' process of netting and settlement would be necessary, which would take time, and possibly liquidity support for those who have issued the CDS which have been nullified.
But a huge layer of risk and toxic perverse incentives would be removed. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
