From the article linked in the original post:
"These disasters have damaged banks' reputations, but not their balance sheets. Most are still profitable, and in recent years the five banks have
improved their capital bases and liquidity. They also have been subjected to annual Federal Reserve stress tests that measure whether the banks have
sufficient capital to weather severe economic scenarios."
The mega-banks are much, much stronger than they were back in 2008-2009 when the financial crisis struck. They have been very, very aggressive in
selling off non-core assets -- meaning, they have aggressively downsized departments and assets that are not a main part of their core operating
business - i.e., deposits and loans.
Liquidity -- meaning cash on hand -- has skyrocketed at the mega-banks. The banks have money to lend, but a huge difficulty finding qualified
borrowers to lend to. Profits are way up, liquidity is way up.
Maybe it is time for it all to come crashing down...
It's fair to say that we will eventually see an orchestrated event or events that will cause a One World Bank to emerge from the ash heap of our
current banking structure. Consolidations will continue. Small banks will continue to get gobbled up by the big banks, and cannot compete on an even
playing field with the mega-banks.
Hear, hear - time to clear the rubble so we can rebuild something lasting and of better quality for ourselves. I'd even be willing to extend that to
quite a few other things as well.
Be careful what you wish for. The whole plan is to centralize the banking system into fewer and fewer hands until we eventually have a One World
Bank. People decrying the current banking system will only speed up that process.
They do not have a great deal of cash on hand.
Because most banking has gone electronic. We are fast becoming a cashless society.
Also, loans have become much harder to get.
Agreed. However, loans have become difficult to get because we have had 30+ years of credit expansion and most individuals and businesses are already
in debt up to their eyeballs and can barely manage their current debt loads.
I agree, the current system is now and has been for 20 years beyond saving.
These mega-banks are, after all, just a huge hodge-podge of consolidations, mergers, and acquisitions. You have people from hundreds of different
banks, different software, all thrown together to try to operate as a single entity. That's one of the main reasons why the banks are so
bureaucratic and inefficient.