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Thought this was a pretty interesting article examining Mr. Sander's claims of "Breaking up the big banks" and if that is actually going to prevent another financial crisis like the Great Recession.
Quote:
To critics, the Problem with Wall Street can be separated into five distinct problems: the Wall Street rich are strangling democracy with money and clout; Wall Street’s inherent recklessness will imperil the economy again as it did in 2008, especially if its financial institutions are “too big to fail”; Wall Street speculators are a parasite on the real economy; Wall Streeters don’t pay their fair share of taxes; and their super-salaries are a shocking offense against fairness in an era of acute income equality. (I work on Wall Street, in private equity, and while I don’t think that I earn a super-salary, I also know there’s no way to justify how much I make relative to a nurse.)
Clinton is advocating that the problem is much more complex than just reinstating the break up of the major banks. Trends are showing over time that the big banks are actually controlling less and less of the market share. That breaking up the banks would just addresses the single issue of "too big to fail".
Quote:
In the past decade, electronic-trading platforms that connect buy-side investors to one another have cleared out floors of traders and other sell-side intermediaries, leading to developments like Morgan Stanley’s recent decision to lay off twenty-five per cent of its bond and currency traders. Meanwhile, many of the Dodd-Frank regulations introduced, after the 2008 financial crisis, forced sell-side banks to shift in countless and surprising ways to less-risky business lines, becoming less profitable as a result. Dodd-Frank’s Volcker Rule, which severely limits proprietary trading, in-house hedge funds, and private-equity funds within banks, came for the banks at an inopportune time: during the middle of a golden age of new profit opportunities for hedge-fund and private-equity managers. The low interest rates that have prevailed since 2002 have impelled institutional investors, like pension funds and college endowments, to seek higher returns on huge volumes of capital through those funds, which now collectively manage about $7.4 trillion. All of this has unquestionably hurt the sell side. In 2014, the net income of the six large banks Sanders worries about was sixty-nine billion dollars, seventeen per cent below 2006 levels. If you exclude Wells Fargo, whose income figures are skewed by a merger, the other banks’ income was down thirty-eight per cent.
The shift in power on Wall Street is no secret; it was front-page news, after all, when Marco Rubio received the endorsement, last month, of the hedge-fund manager Paul Singer.
So I am curious to what other people think? Is the Sanders/Warren/McCain (yup he co-sponsored Glass Steagall 2015) camp right? Or is Hillary right that the banking industry in general doesn't need a major quick fix, but instead a series of actions that will help bills like Dodd Frank actually achieve what it set out to do.
For those wondering where most of the GOP candidates sit, they don't support bringing it back and want even more deregulation
Last edited by thedirtypirate; 12-13-2015 at 08:04 AM..
Should be another option... Neither. Repealing Glass Steagall wasn't the problem. Neither was Wall Street. Neither was the private sector. We have an additional $2 trillion in national debt so that the Federal Reserve could buy $2 trillion worth of GSE MBS to bail out Fannie and Freddie.
Small banks died from their over regulation already so unless you undo that you have nothing.
What Hillary knows about that would only be about how to extort or have donated money to her foundation, self or the DNC.
By 80% to 20% Democrats are now the party of big business corporations. Just look at who donates and how often.
Small banks died from their over regulation already so unless you undo that you have nothing.
What Hillary knows about that would only be about how to extort or have donated money to her foundation, self or the DNC.
By 80% to 20% Democrats are now the party of big business corporations. Just look at who donates and how often.
Koch brothers are spending a billion this year according to them.
The 80 percent figure is complete nonsense spouted by Louie Gohmert.
I don't know how to take the OP seriously. I worked many years for the Wall St firm y'all love to hate. Even before she ran for senator in NY we'd see her coming and going, after she was elected we'd see her weekly.
There isn't a chance in hell of serious Wall St reform from Hillary. It isn't that Wall St owns Hillary, they love each other. The majority of Wall St execs are ivy league grads and they're all heavy-duty Democrats. They understand her, she understands them. When she rips on Wall St it's all wink-wink-nod-nod, and everyone gets she has to throw red meat to the masses.
Any "reform" written by Hillary will be drafted by the big firms on Wall St and will be done to benefit Wall St, especially the bigger firms.
Don't believe me, no problem, but check out the left-leaning Salon...they get it.
I'm not a Leftist, so I wouldn't vote for either Hillary or Sanders. However I have read that even at the time it was passed, Glass-Steagall was considered by many to be "too extreme." and even Glass himself is reported to have favored its repeal not long after it was passed, believing it was an overreaction. Some argued that the GSA restrictions actually made the banking industry riskier, rather than safer.
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