Banks 'Too Big to Fail' Have Grown Even Bigger

Banks 'Too Big to Fail' Have Grown Even Bigger

www.washingtonpost.com

The crisis may be turning out very well for many of the behemoths that dominate U.S. finance. A series of federally arranged mergers safely landed troubled banks on the decks of more stable firms. And it allowed the survivors to emerge from the turmoil with strengthened market positions, giving them even greater control over consumer lending and more potential to profit.

(visit the link for the full news article)

Anyone else find this wrong in any way? Well, I find it wrong.

These companies shouldnt even exist and yet they are making a profit off of a crisis they had a major hand in causing!

Oh, you can say it was the consumers fault for signing those mortgages but you know deep in your heart that these companies conspired to get as much profit as fast as possible, darn the risks!

The folks over at The Mess That Greenspan Made state it quite nicely.

Now that's a sweet deal - boost your market share in originating what are essentially "no-risk" loans because, either wards of the state Fannie Mae and FreddieMac will buy the loans or you'll get bailed out if things again go awry.

www.washingtonpost.com
(visit the link for the full news article)

Our friends over at Yahoo! Finance asked someone else what they think about this...
Rewarding Failure: Unintended Consequences of Bank Bailouts Mount

"No, we shouldn't be celebrating this...banks are too important to be bailed out," Tamny says. "Big surprise that the government got some of its money back saving banks that should have been allowed to die. There's going to be a natural return there, but it shouldn't have happened."

Instead of letting capitalism run it's course, Tamny notes we've entered a vicious cycle of baiilout's unintended consequences. Exhibit A: Banks deemed "too big to fail" have in fact grown larger and even more interconnected,

I find it wrong. IM thiinking the only reason they got bigger, was becuase look how many banks cllosed this year alone.that would kill alot of competition for those big banks! more are to come, in terms of bank closings. how do you think cvs, walmart, walgreens got big? they bought out all the mom n pops stores, and killed the competition! so they wouold easily jsut consume, gian net profits.

reply to post by ziggy1706


There is no competition between the banks anymore, which is probably helping smaller banks fail even faster!

Stupid bailouts.

i think it also has to do with the revolving door between government officials and these big banks, particularly goldman sachs. they are cronies, moving in and out of powerful government positions and the banker positions, one hand washing the other. everything one does to the other will come back to him on the next round. i have no idea how long this can go on, disregarding the citizens of this country. letting the big get bigger seems beyond insane.

Will the banks be doing that well when the Us dollar is worth less than the quilted picker upper?

Bounty lumberjack man for president.

reply to post by TheFaiThfulSkepTic


Wait until the Japanese elections are over. The up and coming political party doesnt want the USD T-Bills.

It's going to cause chaos.