Friday, January 15, 2010

Break Up The U.S. Banks That Are "Too Big To Fail"

President Obama calls the biggest bank bonuses of all time "obscene" and is talking with Congress about taxing those bonuses to recover some money for the American people.

But so far Mr. Obama can't even get tougher financial regulations or a new Consumer Protection Agency through Congress for the banking lobby buys the Congressmen.

But Mr. Obama has powers he's not using. Under the Antitrust legislation already on the books, he can direct the Attorney General to file suit to break up the banks that are "too big to fail," for they have become a monopolistic predatory trust.

A century ago, this is what Teddy Roosevelt did against the greedy corporate giants and it's time to do it again. Bank of America, Citigroup, Goldman Sachs, J.P. Morgan Chase and other giants need to be broken up so community banks can compete with them and to stop U.S. consumers from being gauged at every opportunity.

This is how Mr. Obama can show them "change" is coming, rather than just reacting in anger at the fleecing of the American people.

If Congress can find the courage to act, it could re institute the 1933 Glass-Steagall act, which separates banking (making traditional loans) from investment banking (trading stocks, bonds and commodities and creating exotic financial instruments). This act served the public well until it was dismantled several years ago by banking lobbyists.

These banking behemoths then had overwhelming conflicts of interest but it didn't matter to them in their aggressive pursuit of deals and massive executive bonuses, which played a crucial factor in the current economic meltdown. These conflicts of interest still exist today and already, these behemoths are back to their old ways and the sky high bonuses are just one manifestation.

America has been a great nation and it can be again. Taking financial control back from those who bled it dry, including Congress, is a vital step. But it can't happen unless you raise your voice and demand change for no President can accomplish this without your support. Let's encourage this President and give him that support.

Dick [last updated 1/18/10]

2 comments:

Dick Kazan said...

Hello to you as well. It is a pleasure to know you visited this website.

beachfnt said...

Right now it appears that Paul Volker is carrying the laboring oar and leading this charge (and getting smacked in the press). He essentially appears to be trying to revive Glass-Steagall and from his actions under Reagan, doesn't mind being unpopular. Where does our President stand on new regulations??? I'm less interested in his trying to score some political points with an angry public as I am with fixing the problem of too big to fail AND excessive risks being taken by our behemoth banks...