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Mon Apr 11, 2016, 02:37 AM

Bernie and the Big Banks (Robert Reich 4/10/16)

"The recent kerfluffle about Bernie Sanders purportedly not knowing how to bust up the big banks says far more about the threat Sanders poses to the Democratic establishment and its Wall Street wing than it does about the candidate himself. Of course Sanders knows how to bust up the big banks. He’s already introduced legislation to do just that. And even without new legislation a president has the power under the Dodd-Frank reform act to initiate such a breakup. But Sanders threatens the Democratic establishment and Wall Street, not least because he’s intent on doing exactly what he says he’ll do: breaking up the biggest banks."

http://www.huffingtonpost.com/robert-reich/bernie-and-the-big-banks_b_9657184.html

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Reply Bernie and the Big Banks (Robert Reich 4/10/16) (Original post)
bjo59 Apr 2016 OP
pat_k Apr 2016 #1
pantsonfire Apr 2016 #2
elleng Apr 2016 #3

Response to bjo59 (Original post)

Mon Apr 11, 2016, 02:49 AM

1. kick 'n' rec

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Response to bjo59 (Original post)

Mon Apr 11, 2016, 02:50 AM

2. Yeah, but the pope didn't invite him to the white house, I mean the Rome. n/t

 

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Response to bjo59 (Original post)

Mon Apr 11, 2016, 03:10 AM

3. 'Dodd-Frank addressed these sorts of abuses in broad strokes but

left the most important decisions to regulatory agencies.

Since then, platoons of Wall Street lobbyists, lawyers and litigators have been watering down and delaying those regulations.

For example, Dodd-Frank instructed the Commodity Futures Trading Commission to reduce certain risks, but the Street has sabotaged the process.

In its first major rule under Dodd-Frank, the CFTC considered 1,500 comments, largely generated by and from the Street. After several years the commission issued a proposed rule, including some of the loopholes and exceptions the Street sought.

Wall Street still wasn’t satisfied. So the CFTC agreed to delay enforcement of the rule, allowing the Street more time to voice its objections. Even this wasn’t enough for the big banks, whose lawyers then filed a lawsuit in the federal courts, arguing that the commission’s cost-benefit analysis wasn’t adequate.

As of now, only 155 of the 398 regulations required by Dodd-Frank have been finalized. And those final versions are shot through with loopholes big enough for Wall Street’s top brass to drive their Ferrari’s through.

The biggest banks still haven’t even come up with acceptable “living wills,” required under Dodd-Frank to show how they’d maintain important functions while going through bankruptcy.

Meanwhile they continue to gamble with depositor’s money. Many of their operations are global, making it even harder for U.S. regulators to rein them in — as evidenced by JPMorgan Chase’s $6.2 billion loss in its “London Whale” operation in 2012. Citigroup alone has over 2,000 foreign subsidies.

The bottom line: Regulation won’t end the Street’s abuses. The Street has too much firepower. And because it continues to be a major source of campaign funding, no set of regulations will be tough enough.

So the biggest banks must be busted up.'

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