Administration plans for end of 'too big too fail'

I have to say sorry. Bush could not have created this huge mess without the consent of our congress. Bunch of slackers one and all.

This is a ludicrous "cart before the horse" approach to overly-invasive government that's become the hallmark of the Obama presidency.

As Deputy Director Farrel stated, "The regulator might say to a large institution, "Make sure there is very good reason to allow yourself to get that big, or that interconnected, or that complex because the penalties will wipe out any advantages, such as lower cost of capital, you might have." Nothing could be worse.

The government's responsibility and goal should be to ensure that these institutions cannot create systemic risk by requiring they are adequately capitalized and properly overseen (by the government) with respect to every type of business they do on any size or scale. Instead, as the government's representative has explicitly stated, the government has decided to create de facto penalties that would discourage banks not just from engaging in particular types of business, but certain scales of business altogether simply based on size rather than their ability to do soundly, responsibly, and without creating systemic risk. The government isn't just mitigating risk, it's mandating specific winners and losers based upon nothing more than its belief that it has a place in such matters.

While the problems this will create are going to be significant enough when limited to the financial sector, the real danger is the precedent it sets for the government to invervene and interfere with the conduct of any business or enterprise based upon some nonexistent entitlement to do so. In fact, America was founded on principles that prohibited government intrusion. While many Americans are perfectly content to let this continue as long as it's happening to "them", someone other business in another place full of employees and managers they never see, once the government is allowed to set this precedent, nobody anywhere can be reasonably assured that the government's next choice to interfere won't be at his employer, mandating the company abandon the work being done by his department, or deciding how much he should be entitled to earn for the work he does.

Ladies and gentlemen, "he" is you and me. And the distance between "them" and "us", and the sudden distance between Washington and you livelihood, is far shorter than it seems. Don't let anyone tell you (or us) differently.

Thank God. At last some sense is being applied to this disaster. We cannot have institutions that cannot fail without collapsing the economy around our ears. Even with all the money we, the taxpayers, have pumped into these instutitions, our economy is staggering about like a drunken sailor. I will have to read the details, but the idea that is being floated is the most promising thing I've seen yet from the Obama Administration. This actually deals with the systemic issues. Much like the creation of the SEC by FDR, this will do more to reinvigorate the markets than anything else. If this goes through, I will have some confidence that money I invest will not be at risk in another round of over-optomistic investment.

Well, I think it's a good idea.  At the very least it's a different idea.  Look all these banks are good at are earning money in whatever way they can regardless of how sleazy some of those methods are.  One thing is for sure and that is something needs to change.  We can't have a few greedy companies bring down the entire system.  They didn't respect the rules that are there to protect from this type of meltdown.  So they devised these intricate systems to sidestep the rules.  And wow - we got the same damaging outcome.  More banks means more competition and that's good for regular people.  Their current fees are ridiculous to begin with.  Credit cards with fees up to 40%.  Over draft fees $25.00 (and then watch out for the domino effect).  $40.00 Over the Credit Limit fee.  WTF!   Banks are feeding off of the very people that keep them in business.  And when they tap ran dry, the sissy banks went right back to the people who they had taken from and then took more from them.  Bank of America has had more financial scandals than I care to think about.  Those guys have lost their way.  Remember that one a few years ago where they bought into a fund the day before the interest was paid and shared in returns the same as someone who had invested for the entire quarter?  B of A - you guys are retards thinking that no one will catch you.  Fraud on that level only works on small insignificant levels.  But when you do it on a grand scale - you're dooming yourselves and the innocents you take with you.  e.g. Tyco, Enron, WorldCom, BofA, AIG, etc...  And let's not even talk about the Boards at these corporations who are in bed with the bad guys.  And when I want to call someone to gripe - I'll call India and get help from scripted automatons. 

Personally, I believe the the sale of US debt instruments (bonds, etc...) to foreign concerns is criminal. I the gov't wants/needs to raise monies ove and above tx revenues, these bonds should be sold to and held by U.S. citizens. Further, I believe that the governmental and business practices that have led our nation into such dire straits are also criminal in that these practises are contrary to the well being of the people and the nation. further still, I hold that all those , in public service or the private sector, who forwarded or condoned these practices to be criminally liable. I realize that all this was "legal", but this merely points up the abysmal state of what passes for ethics in thes nation and the world at large today.

I say again, DOESN'T ANYONE READ PLATO ANYMORE???

Amen!! It took 6 months for Obama to get the message. Intelligent Americans (mostly Republicans) wanted him to stop that long ago. It takes forever for something to sink into a Liberal's head!

National Debt:

$11,500,138,654,521.48
You can thank Obama and his congress on Captiol Hill.
The estimated population of the United States is 306,492,830
so each citizen's share of this debt is $37,521.73.
The National Debt has continued to increase an average of
$3.86 billion per day since September 28, 2007!
Concerned?
Democrats are all a joke. Keep on drinking that Obama flavored kool-aid. All you have to do is google a few facts!
When Bush was sworn in on January 20, 2001, the national debt was $5,727,776,738,304.64.
When "W" left office on January 20, 2009, the national debt was $10,626,877,048,913.08.
The growth in the national debt during his eight years in office: $4,899,100,310,608.44. Obama has already spent another trillion in only 6 long months of his failed policies.
When "W" left office on January 20, 2009, the national debt was $10,626,877,048,913.08.
Now it's
$11,500,138,654,521.48. Obama has put almost a trillion dollars on us in just 6 short months. By my calculations that would be that would be about 8-9 trillion dollars more on us.
Bush only doubled our debt and it took him 8 years. Obama will have outspent every president combined.
What part of this can't you people read or add up?
All under Democratic rule. Facts they don't want you to know.
Facts don't lie, but Obama does!

As for the "stimulus", pfeh! All those billions would have been FAR better spent on much needed infrastructure: bridges, the power grid, ports, and maybe investment into rebuilding our manufacturing base. I am quite appalled that the bulk of the nations steel is manufactured abroad and that those facilities within the country are owned by foreign natonals.

NEWS FLASH !

PREZ OBAMA HAS DECIDED TO CLOSE THE BARN DOORS.

BAD NEWS : The government has already spent billions and nothing is left; except empty stalls.

Business "To Big To Fail "; should have been allowed to fail long ago.

Where's the stimulus ?

It should have gone to the American taxpayers.

What a stimulus that would have been, people buying extras; business getting the business. Governments getting the sales taxes.

Oops! To late.

I think the hope is that the money that Obama is dumping into the system to buy up bad assets can be sold at some point in the future to at least break even... There will probably be significant loss, but hopefully, we'll get a good portion of it back.

Here's an idea, take the money out of politics. Maybe we can get some honest folk to run the country.

Baldenario advises novices that the best strategy is to split the megabanks and to put a 10 percent interest cap on all credit card debt, current and future, while at the same time eliminating the "special rule" that allows the sneaky weasels to setup shop in South Dakota where "curiously" there are no usury prohibitions . . .

The common folk are stuck with the long-term debt of all the "bail-outs", and so far all we are getting is higher credit card interest rates, no jobs, no homes, no cars, and not much of anything else other than a royal screwing . . .

And once the megabanks are broken-up, the next steps are (a) to eliminate the largest secret banking organization in the known universe--the FED--and (b) to start focusing on something other than "bailing-out" sneaky weasels . . .

Thanks!

Why is it that Republicans always claim they are debating without name calling. I can listen to 2 minutes of Rush and 3 minutes of FOX News' Neil Cavuto and hear more name calling and baseless claims than any "liberal" could ever express in 1 hour of a healthy debate.

Also, the definition of ignorant is "lacking knowledge or information as to a particular subject or fact." When one calls another ignorant they are questioning the statement at hand, not insulting their life choices.

Finally, the definition of liberal is "[one who is] favorable to or in accord with concepts of maximum individual freedom possible, esp. as guaranteed by law and secured by governmental protection of civil liberties." How is that bad? Why do conservatives repeatedly use that word with such malice? Do Republicans associate Democrats with negativity because they advocate civil liberties?

I wonder if not allowing huge corporation will help smaller business's / corps and startup's. Just thinking out loud... but splitting corporations up into smaller, more managable firms may create more jobs, have the work done more precisely, and efficiently; come to think of it, that's exactly how the firm I work for operates. Smaller groups, 4 or 5 or so, managed by one guy. The company this is modeled after had become one of the largest, and most reliable firms in the area.

Shrinking them might be a good thing. More competition (meaning competative pricing), more jobs, more locally controlled businesses....

maybe.

AGAIN and STILL...........

To Big To Fail is just too BIG to be allowed.

I am sick of the bailouts to corporations that are too BIG.

That being said, if they still want to be TOO BIG TO FAIL, they must be allowed to FAIL on their own. The US TAXPAYER should never be held RESPONSIBLE for the SINS of huge Corporations, in any way, shape or form.

Those who will grow to control the economy are enemies of this country and will only seek to further their own interests and WILL IGNORE the interests of this COUNTRY.

Capitalism must be controlled or it will take over the entire government (as if this has not already advanced to a huge degree) and will DESTROY THE US for fun and MOSTLY PROFIT.

They TAXPAYERS should never be liable for any more of this crap and CORPORATE GREED.

Let them all know that if they still want to chance it, they are on their own and will NEVER RECEIVE MORE BAILOUTS. Let those with the Millions and BILLIONS die economically like that have done to the workers and taxpayers.

I'm glad they got all our money first. Sigh.

Obama is forgetting albout the two other groups, that over the past 50 years have drained more money out of the coffers than practically everything else: way, way overpaid unions and hordes of non-contributing, social partasites.

To Obama these groups are not too big to fail because without their votes there is not democratic paty to speak of. A combinattion of democratic president and democrtic controlled congress (where most of the real power is ) has almost never RESULTED IN ECONOMIC GROWTH. Why? Because the people who vote democratic do not create economic growth: they just suck off it.

Thats why the way, way over-funded stimulus will fail. Creating un-need goverment jobs is just pushing tax dollars around. Giving Unions a job of digging and hole and then filling it in creates no growth (road and bridges are STATE problems and it is really telling that the top five states in SEVERE trouble are: democratic, have the highest tax rates, are heavily unionized and are chalk full of social parasites).

Unemployment/Inflation are both going to SKYROCKET to 12-15% and what does Obama want to do? He wants to skyrocket the cost of utilites (that will make EVERYTING MORE EXPENSIVE), tax healthcare, create a whole slurry of other new taxes that will hit non-unionized social CONTRIBUTORS and feed the lazy, epxpenisve unions and social vampires

These next 3.5 years are going ot be a disaster. GOP doent need a leader right now becuasde the democrats will do way more over the next few years to promote the Republican party than any one person could do.

Those who disagree with Obama's recent policy decisions are entitled to their opinion. This is why we live in America. As citizens we forget that we founded this country based on many principles. One belief includes freedom of speech.

Republicans who are so vehemently opposed to the policy decisions are not attacking the decisions analytically; however, they are attacking the character and integrity of a public official who has taken a pay cut to serve the citizens of America. Conservatives should try analyzing the integrity and character of Rush Limbaugh, Neil Cavuto, Glen Beck and other Republican officials who have corrupted their party. The term "conservative" no longer describes the fiscal responsibility of the Republican party. Now, individuals equate the Republican political party with a religious denomination. These same individuals not only condemn the Middle Eastern countries' implentation of traditions found within the Qur'an, they cite their faith for their repressive government. Meanwhiel they praise Ayatollah Bush and praise the conservative appointments of conservative Supreme Court Justices without realizing that their freedoms are slowly being eroded. Conservatives who supported the Bush policies "war on terror" were supporting a strategy that exacerbated the already prevalent anti-American sentiment in the Middle East. Both conservatives and democrats should stop displacing an ignorant hatred onto the whole Muslim population for the actions of few. Should the Republicans regain their true identity, I am confident that true bipartisanship will emerge.

This country is in dire need of both influences. The influence of the Democratic party regarding the social rights of citizens is the most important characteristic of American government. Take away the freedoms of an American citizen and the United States will be a hollow country enslaved by the very laws drafted to protect said freedoms. The influence of the Republican party regarding the fiscal conservatism is also important to the development of our country. The Republican party is also needed to curb spending of the Democratic party. A fiscally conservative country will focus on its domestic issues with precision and efficiency.

Stop criticizing the President and start focusing on ways to improve your government. For example, vote for your Congressman. They pass the laws.

P.S.

Don't claim that you've gone to the best Architectural college and write at the second grade level. Also, don't claim you've gone to Columbia and be so close minded. Educated individuals respectfully disagree

Democratic Government micro management

This is a feel-good article for banking reform.... In reality, the size of the bank is dictated by their business practice and take-overs. The reason for their failure is taking on risks and those risks finally collapsed on them. This is not an issue overnight.

So the best solution is not to trim the bank size; but to make those hedge-fund managers be held accountable for down-grading stocks, over-speculate, etc.... Overall, keep wall-street as an investment market... not a [Day] Trading ground for those greedy ****....

Last but not least, make all the accountants and auditors be responsible for their figures. I am pretty sure they are fudging the numbers very well to mask all of those loses early on... but as time goes by, they will resurface and contribute to the global collapse....

here is more evidence that "to big to fail" will not stop. The FDIC is close to insolvency.

FDIC Chairman Sheila Bair confirmed our theory

this March when she announced her organization "could

become insolvent this year" as the depositor fund balance

"approach[ed] zero."

Do you really think the government will allow the FDIC to go belly up? I think not so get ready for more.

None are more hopelessly enslaved than those who falsely believe they are free” – Johann Wolfgang von Goethe SO true my friend so true.

What I cant understand is ,that ordinary working people who have paid their taxes and believe in the Free society really believe it while these money people who have been bleeding the country and us the taxer payer supporting them. I am not political and I believe you need a change and thats what he promised. Just stop and except the changes and if he is wrong then you have a chance to vote another Bush or Chaney type into office. You can vent your spleen all you like but nothing is achieved in showing yourself up by acting like a child and calling names to people who see the world from another prospective. The peole voted for change so what do you expected? Just get over it

Why is Obama giving more power to a private group who didnt do its job in the first place instead of giving more power to the FDIC? The federal reserve should be dismantled and all of its exec's sent to a prison camp for life as well as bankrupting them!! This is just more corruption from our government!!!