There was a partial audit of the Fed a few years after the crash, it uncovered a house of horrors. And we should be clear, almost everything the government has done since the crash has been to prop up the banking sector. Right after the crash, most of the derivatives that these parasitic interests owned were collapsing in value, because many of them were derived from property whose values had collapsed. So, what did the government do? Pay for those things above the market value that existed at the time, and they often had deals to sell those things back if they appreciated in value and ultimately turned out to be profitable investments after the recovery. QE is essentially a bailout. One of the things the government promised under Bush and then Obama was a mass debt write down of homeowners, among others. It never happened, and since the products of banks IS debt, who did that lack of a debt write down benefit? Did the government go after the banks after the LIBOR scandal, did it go after the banks after the drug and money laundering came into the public view? Did the Panama Papers or mass criminality like rigging bond auctions lead to anyone getting into trouble? Was the lack of action not a bailout? This author is a propagandist and would feel shame if he was capable of feeling shame. The banks in this country are all almost certainly insolvent when it comes down to it. When the next crash hits, the FDIC will not have anywhere near enough money, and the public will socialize the costs of the parasitic rentier class. God forbid that we socialize the benefits too.
The Minneapolis Fed has said that banks should be treated like we treat public utilities. I agree, but would go further. Warren has a great idea to re-start postal savings banks. The private banks killed postal savings banking decades ago, called it a “menace”, and because of the right our postal service has financial troubles. So, why not a public option in banking? Why not do as Ellen Brown has called for, which is a growth in the public banking sector. Like with internet service providers, lobbyists have written into law that the government in many places cannot do these things, but we could move forward, and change the laws barring these things. But, that would require a party, not just individuals like Warren and Sanders, that is willing and able to actually lead and provide actual solutions to actual structural problems. And both of these parties don’t combine to have a collective worth of a six foot pile of whale shit. Can’t wait for the Beto/Harris/Booker policies on how to deal with a parasitic banking sector. After taking their bribes, they will surely get to the work, for the people of course.