Paul Ryan: Dodd-Frank Goes In Wrong Direction
Posted by Larry Doyle on May 10, 2013 7:10 AM |
America is increasingly aware that banks that are too big to fail, trust, regulate, prosecute, and jail are thus — duh — TOO BIG TO EXIST!!
This basic principle espoused by anybody with even a modicum of “sense on cents” is gaining momentum in Washington given the growing bipartisan support for the Brown-Vitter Bill to address the too big to fail reality.
I personally believe the Brown-Vitter Bill should only be an initial pit stop on our way to breaking up these mega-banks that own Washington and run our country. Who recently weighed in on these topics?
Paul Ryan (R-WI) had the following to say to his constituents in a town hall in Wisconsin:
Banks are getting really big, and they are using the value of their deposits to go do other things that are really not banking and jeopardizing the stability of the system.
Dodd-Frank goes in the wrong direction. It creates a permanent bailout fund. It deems very large, interconnected banks as too big to fail, meaning the government will back them up if they go down. And that means these really large banks can go into the markets and get money at a much cheaper rate than your community bank.
I also believe in what we call the Volcker rule, which means if you’re going to act like a hedge fund then be a hedge fund. If you’re going to be a bank, then you have to be regulated like a bank.
Meaning separate the ability of banks to take the implied subsidy of insured deposits and leverage that. I think that was one of the mistakes that was made.
What else does he have to say? Listen to this brief 2-minute clip.
Too big to fail, trust, regulate, prosecute, and jail . . . then — duh — BREAK ‘EM UP!!
I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.