Do TBTF Banks exist just to rip off citizens?

Discussion in 'Wall St. News' started by MarketMasher, Dec 1, 2011.


    "The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue."

    "Dean Baker, co-director of the Center for Economic and Policy Research in Washington, says banks “were either in bad shape or taking advantage of the Fed giving them a good deal. The former contradicts their public statements. The latter -- getting loans at below-market rates during a financial crisis -- is quite a gift.”"

    So they tell everyone that breaking them up would be "punishing success", and line their executive's pockets with fat bonuses.

    The default mode of thinking for everyone should be that they are egregious liars out only to stuff their pockets at everyone else's expense. Austerity for the masses, pastry for the useless bankers.
  2. tbtf banks exist to maximize shareholder value, with size comes economy of scale. That is why we allowed them to merge and grow.
  3. zdreg


    it is nice that u didn't take the opportunity to use the old saw socialism for the rich and capitalism for the poor.
  4. TBTF Banks are Socialist by definition. That means they are supported by the government.

    Arguing to allow them to be TBTF would make one a Socialist.
  5. Do TBTF Banks exist just to rip off citizens?

    Don't know, but none of this made a dent in my wallet.
  6. zdreg


    inflation and fake US government inflation statistics are making a dent in your wallet.