posted on Feb, 25 2014 @ 02:17 PM
Too Big too fail is hardly over
My colleagues Hester Peirce and Robert Greene have put together a series of charts showing the recent concentration of the U.S. banking system
— small banks are disappearing and large banks are growing in number. Here is one of their charts that shows the changes:
Oh now what was it ?
'The Era of too big to fail is over' !
Since the creation of Frank Dodd that was 'suppose to fix' Wall Street.
Bankers are making out even better!
The Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111–203, H.R. 4173; commonly referred to as Dodd-Frank) was signed
into federal law by President Barack Obama on July 21, 2010 at the Ronald Reagan Building in Washington, DC. Passed as a response to the late-2000s
recession, it brought the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great
Depression. It made changes in the American financial regulatory environment that affect all federal financial regulatory agencies and almost
every part of the nation's financial services industry.
So the current administration, and its cronies solution to the so called 'financial crisis' was MORE regulation!
And that regulation is killing the small business side on the financial industry.
Golf clap Obama for signing that bill that did nothing, but make the 'rich,richer' ! ! ! ! ! !
Yep it did!
And people seriously ?
Frank Dodd was passed when the Democrats held the House,Senate, and the Executive.
The financial crisis of 2007–2010 led to widespread calls for changes in the regulatory system. In June 2009, President Obama introduced
a proposal for a "sweeping overhaul of the United States financial regulatory system, a transformation on a scale not seen since the reforms that
followed the Great Depression."
What a joke!
They sure do love to hype trash laws don't they ?
For those who are paying attention:
"The era of too big to fail' just got a whole lot bigger thanks to the financial 'reforms' of the current administration.
Regulatory compliance can be a particular challenge for small banks with limited compliance expertise. Regulatory expenses absorb a larger
percentage of small banks’ budgets than of their larger counterparts’ budgets. Although correlation is not evidence of causation, as financial
regulation has increased since 2000, so has banking concentration. The Dodd-Frank Act, passed in 2010, imposes a new set of regulations that are
disproportionately burdensome to small banks. Moreover, by designating the largest financial institutions as “systemically important,” Dodd-Frank
creates a market expectation that designated firms are too big to fail and generates funding and other competitive advantages for the largest US
Obama and Frank-Dodd sure came in and 'saved' the day ! ! ! ! !