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Paving Way for Next Taxpayer-Funded Wall Street Bailout, Trump Fed Unveils Plan to Gut Volcker Rule


#1

Paving Way for Next Taxpayer-Funded Wall Street Bailout, Trump Fed Unveils Plan to Gut Volcker Rule

Jake Johnson, staff writer

Continuing the reckless onslaught against Wall Street regulations that Congress kicked off last week with the final bipartisan passage of the Bank Lobbyist Act, President Donald Trump's Federal Reserve on Wednesday unveiled a plan to gut the post-crisis Volcker Rule—a move that consumer advocates warn will unleash a torrent of gambling by big banks and dramatically heighten the risk of another financial meltdown.


#2

Let’s see if I’ve got this straight: the banksters gamble with our money, and if they win, they get to keep it all; but if they lose, we have to pay them back??

If you haven’t yet switched over to credit unions, delay no further.


#3

A big wet kiss thank you goes to President Bill Clinton for getting rid of Glass/Steagall.


#4

Trump thanked the New Dems for helping pass this bill.

The New Dems sound an awful lot like the corporate puppet Clinton-Obama old dems to me.


#5

BTW, keep an eye on Deutsche Bank. Their impending collapse is a possible trigger for the next credit default swap meltdown in the high-finance casino. It’s bail out time…


#6

Time to reread this article before the next crash: https://dissidentvoice.org/2018/01/when-your-bank-fails-dont-walk-run/.


#7

Sorry for my ignorance, but are Credit Unions safe? That is, are they beyond the reach of the greedy Wall Street banksters?


#8

A sizable portion of the country is broke. The distribution of wealth from the middle class and poor to the wealthy by republican and democratic administrations has been very effective. 43 percent of Americans can no longer pay their rent and buy food. They have nothing left to give the banksters when the next financial crisis occurs.


#9

Credit Unions are bound by far more strict rules on how they can treat members savings. Whole different set of regulations. Doesn’t mean that they can’t be ravaged as a side effect in any meltdown; just means they can’t “play” with customers money.


#10

Banks simply cannot accurately calculate the systematic risk of their activities, or how they in conjunction with other banks collectively put the system at risk. It is a classic case of a negative externality, where a private interest creates a cost, then passes that cost off onto the country at large. Polluting interests do that, which is why the right wing works hard to allow them to create costs, which they can then push off onto us all collectively, onto the environment, and many of those impacts are also unpriced. These giant financial institutions pose a systematic risk to the economy, and because of the size of financial capital relative to the real economy, they pose a risk to our society. The percentage of domestic profits going to the financial sector was less than 10% when Reagan took over, and it had climbed to about 40% when the crash hit. It is climbing again, and the big banks are bigger. And we all know that when it comes time to bail them out, we will, with taxpayer money, we will socialize their costs, and we will do so with no mass debt write down, which is insane. Since we are already socializing their costs, and since we know that private financial capital is a parasite on the economy at this point, sucking up money via debt payment that would have otherwise gone to saving or to buying goods and services, let’s go far beyond simply regulating them better. Let’s do what people at the Minneapolis Fed have called for, which is to treat finance as a public utility, and let’s do what Ellen Brown has been pushing for, a public banking option. Warren too has been in favor of the post office doing more financial services, that would be a great start. Small, community centered credit unions/financial cooperatives are also nice options. It’s time to just confront these parasites head on.


#11

I love my credit union. I would use the word “responsible” over “safe.” Another key point is that Wall Street–which detests credit unions-- does everything it can to hamstring CU’s. (Ninety million people have CU accounts, but if I remember rightly, those many only claim 6% of all savings.)

During the 2008-2010, credit unions in western USA were caught up in the housing debacle. Many CU’s do not hold first mortgages as a matter of policy. That probably made little difference during the housing bubble. Where the bubble was big, in the American Southwest, CU’s either went out of business, consolidated, or held on for dear life.

At the time I sat on my credit union board. We watched it unfold. An “insurance policy” was presented by NUCA, totally optional. As many independent CU’s as could afford or would want to might pitch in to participate in a rescue plan for CU’s over which we would never exert control.

We voted to go with it, and I can’t say we would ever win laurels for the decision. It was chancy start to finish. If the plan didn’t work, CU’s around the country might disappear and lose members to major commercial banks. Even we ourselves might face absorption from a larger local CU. If the plan did work, our loan capital would be tied up for five years; member borrowing for autos, home improvements, or college needs would dry up.

Banks answer to stockholders; CU’s answer to members. Stockholders elect a bank’s officers; members, a CU’s board. Any financial institution can be scourged by a crooked employee. The chain of command in a CU starts at the lowest rung. You just have to participate.


#12

When this all comes tumbling down, it is going to make the last crash seem like a picnic.


#13

I remember the last Wall Street crash, and the follow up investigation demonstrated how the housing market and “derivatives” could be easily manipulated by Wall Street white collar criminals. But then as it is now, Wall Street gives away millions of dollars of bribe money to legislators at all levels. That is why it looks like regulators are asleep at the wheel, exactly what Wall Street pays them bribe money to do. My wild guess is Trump and the Republican controlled congress will give them a generous bail out and somehow Trump will find a way to get richer off of the deal.


#14

Taxpayers’ AND depositors’ will both be devastated the next time the banksters crash the economy.

As we observe more and more financial industry regulations being scrapped we can safely bet our last nickle that the Dodd-Frank provision enabling banksters to confiscate depositors’ money to bail themselves out will never be scrapped.


#15

The esteemed Volker Rule is not the Volker Rule (as proposed by Paul Volker) at all. It was an amendment to the already-weak Dodd Frank bill and took many years of negotiations to finalize as both wings of the Duopoly pounded it into pulp.

The result was that it put some restrictions on “proprietary” banking, but was filled so many loopholes and exceptions that it became the usual mush that allowed Dems to claim “victory” while their bosses continue to hyper-ventilate the neoliberal economy untouched – especially through the use of hedge funds and other such wonderful shell-game devices (granting them endless billions in profits while the Federal Reserve continues to fund the whole scam with cheap "credit).

The esteemed progressive philanthropic Soros family will tell you how all this works (if you are a billionaire). They were the ones who “broke” the Bank of England and crashed many Asian economies with speculative ventures.

So progressives, get in line to suck up some crumbs from the billions that the Soros’s stole/steal. You won’t have to worry that either Dodd-Frank or Volker will get in the way.


#16

In a nutshell, if you liked the 1930s you will love the 2020s.


#17

Yes, yet another ‘Art of the deal’ scheme by Trump who borrowed heavily from Deutsche Bank and wants to evade paying back outstanding loan of about $300 million…


#18

Agree, but lets not forget Wall Street also bribed the rating bureaus to rate crappy investments as good. This was the biggest factor in people loosing their retirements. Naturally no criminal charges were brought against them either.


#19

Most of our political problems stem from our dependence on representatives. If you want something done right, you have to do it yourself.

Direct Democracy


#20

I assume you’re talking about a “bail in”. You might want to research what it actually is in terms of Dodd Frank.