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Posts Tagged ‘too big to fail banks’

Wall St ‘Living Wills’ & ‘TBTF’?? Watch Your Wallets, Folks!!

Posted by Larry Doyle on August 7th, 2014 9:21 AM |

Little surprise this week that the Federal Reserve and FDIC have assigned failing grades to Wall Street’s ‘too big to fail’ banks assigned to writing ‘living wills.’

As a frame of reference, these ‘living wills’ are required by the Dodd-Frank legislation intended to reform Wall Street and prevent the need for another government bailout of our ‘too big to fail’ banks.

Really? Well, in theory anyways.

Why is it that our ‘too big to fail’ banks cannot write ‘living wills’? (more…)

Will ‘Too Big to Fail’ Banks Charge for Deposits?

Posted by Larry Doyle on November 25th, 2013 9:38 AM |

$82 billion.

What does that figure represent? The subsidy (aka competitive advantage) that accrues to our major banking institutions from favorable borrowing rates given their status as ‘too big to fail.’

Those tens of billions of dollars truly represent a nice, big head start for a handful of banks, and a withering assault on the precepts of free market capitalism for the rest of us.

As if $82 billion were not enough of a subsidy, let’s not forget that these banks pay you, as a depositor, virtually zero interest for the ‘privilege’ of holding your money there. Well, that may be changing. How so? How would you like to actually pay interest to the banks in order to keep your money in their institutions? Really? No way?

Yes way.¬† (more…)






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