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But here is a safe bet, economists and financial crisis scholars say: The financial system hasn't yet been purged of greed, irrational exuberance or willful misconduct. Another crisis will come.
Wells Fargo, for example, doubled in size when it swallowed Wachovia. It now serves 70 million customers and manages one out of every six mortgage loans.
Bank of America's assets have increased to $2.1 trillion from $1.8 trillion in 2008.
JPMorgan Chase, the biggest U.S. bank, with $2.3 trillion in assets, is nearly three times as big as it was in 2002, and intends to stay that way. "There are huge benefits to size," CEO Jamie Dimon said this week. "Big banks have a function in society."
His bank, he said, "provided a port in the storm" during the crisis.
After the health care overhaul law, the Dodd-Frank Wall Street reform bill, which Obama signed into law in July 2010, is probably the president's signature legislative achievement -- for better or worse.
The law, in 2,319 pages, aims to do an awful lot. It creates a new federal bureaucracy, the Consumer Financial Protection Agency, to monitor the financial system for harmful products and practices. It lowers the fees that banks can charge merchants when a customer pays with a debit card. It seeks to lessen the dependence of the financial markets on credit rating agencies, which proved completely unreliable in their evaluation of financial instruments made out of mortgage loans.
The financial services industry has also flooded Washington with lobbyists who have worked feverishly to delay, weaken or block implementation of the Dodd-Frank reforms. In the first two quarters of 2012, for example, the American Bankers Association spent $4.6 million to lobby on topics including Dodd-Frank. Over the same period, the U.S. Public Interest Research Group, one of the consumer-focused groups fighting for Wall Street reform, spent less than $200,000.
Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares. Read more: Billionaires Dumping Stocks, Economist Knows Why
What’s equally as interesting as his sale of major financials is where Soros has shifted his money. At the same time he was selling bank stocks, he was acquiring some 884,000 shares (approx. $130 million) of Gold via the SPDR Gold Trust (NYSEARCA:GLD).
Originally posted by benrl
... and large banks should be forced to break up in order to prevent "too big to fail"
Originally posted by PatrickGarrow17
Second thread today in reference to a Huffington story, I sort of feel like a super tool. Oh, well.
Personally, I'm torn between completely nationalizing the banking system and an anarchist barter system. Man, I'm confused.