(Maintaining Reformulation of the “Big Risk”)
Banking interests say reforming regulations should go slowly.
Big banks don’t like Dodd-Frank’s capital-reserve requirements. The requirements are linked to “safety and soundness” (the “big risk”) since we do not have Glass-Steagall anymore. Not having it, bankers say, “makes markets more efficient.”
President Trump recently suggested we will have a 21st Century Glass-Steagall, prompting the American Bankers Association to suggest we go slowly.
Repeal of Glass-Steagall resulted in massive consolidation of net worth. TBTF banks confiscated the property of millions and millions of Americans using “innovative derivative products” that Glass-Steagall prohibited.
Dodd-Frank does not intend to break up TBTF banks. If they are small enough to fail, then there is no incentive (no accumulated coercive value) to not let them fail. So the president has suggested breaking up TBTF banks.
Banking interest has been revealed. It is not an interest in economic growth.
If we reduce the capital reserves required to use derivative products that consolidate the wealth of the nation, big bankers say, we will have more economic growth.
What’s inherently wrong with that?
Notice that with or without the requirements, you lose!
What is the real rate of interest on that, occupying your space, compounded over time?
(See other articles by griffithlighton on “the intendency,” risk dimension, and the organized psychopathy.)