14 Apr '16    home | previous

Too Big to Fail

The Huffington Post headlines that Senator Elizabeth Warren has had it with "Paul Krugman's Big Bank Nonsense." The article reports:

The Federal Reserve and the FDIC said Wednesday that five of the biggest banks in the country cannot credibly be unwound safely without bailout money from taxpayers.

Warren described as revisionist history the claim that "Too Big to Fail banks weren't really responsible for the financial crisis."

Yesterday, Hillary Clinton responded to the Federal Reserve and FDIC statement, according to the New York Times, by calling on regulators to increase pressure on the banks, including JPMorgan Chase, Bank of America and Wells Fargo, to clean up their act — or else". And Bernie Sanders countered that the banks " should be broken up now."

Sanders is portraying Hillary Clinton as too cozy with Wall Street. He promises to l break up the financial behemoths and raise their taxes. Meanwhile, at least a few of his supporters have fallen into the devil-verses-saint, conspiracy and corruption positions on the issue – the temptation of binary simplicity – claiming that Hillary has been brought by the banks.

Pointing to more than the Clinton and Sanders sides on the issue, the New York Times reports that Trump, Cruz and Kasich "have all called for the repeal of the Dodd-Frank law, which they accuse of smothering banks in regulations and holding back economic growth."

Copyright © 2016 by Frank E. Smitha. All rights reserved.