SkinsHokieFan Posted September 14, 2009 Share Posted September 14, 2009 http://www.bloomberg.com/apps/news?pid=20601087&sid=aYdgQkXu9eBg Sept. 13 (Bloomberg) -- Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.” Stiglitz’s views echo those of former Federal Reserve Chairman Paul Volcker, who has advised President Barack Obama’s administration to curtail the size of banks, and Bank of Israel Governor Stanley Fischer, who suggested last month that governments may want to discourage financial institutions from growing “excessively.” A year after the demise of Lehman forced the Treasury Department to spend billions to shore up the financial system, Bank of America Corp.’s assets have grown and Citigroup Inc. remains intact. In the U.K., Lloyds Banking Group Plc, 43 percent owned by the government, has taken over the activities of HBOS Plc, and in France BNP Paribas SA now owns the Belgian and Luxembourg banking assets of insurer Fortis. While Obama wants to name some banks as “systemically important” and subject them to stricter oversight, his plan wouldn’t force them to shrink or simplify their structure. Click link for rest Link to comment Share on other sites More sharing options...
Prosperity Posted September 14, 2009 Share Posted September 14, 2009 “We aren’t doing anything significant so far, and the banks are pushing back,” he said. “The leaders of the G-20 will make some small steps forward, given the power of the banks” and “any step forward is a move in the right direction.”G-20 leaders gather next week in Pittsburgh and will consider ways of improving regulation of financial markets and in particular how to set tighter limits on remuneration for market operators. Under pressure from France and Germany, G-20 finance ministers last week reached a preliminary accord that included proposals to claw-back cash awards and linking compensation more closely to long-term performance. “It’s an outrage,” especially “in the U.S. where we poured so much money into the banks,” Stiglitz said. “The administration seems very reluctant to do what is necessary. Yes they’ll do something, the question is: Will they do as much as required?” maybe we need to go farther than this and break up some of the bigger banks. :whoknows: Link to comment Share on other sites More sharing options...
Thiebear Posted September 14, 2009 Share Posted September 14, 2009 rinse/repeat we never learn.. but when the congress is 40 years into their term, why should they? old dogs, old tricks. Link to comment Share on other sites More sharing options...
Kilmer17 Posted September 14, 2009 Share Posted September 14, 2009 We didnt fix anything, and we left the same people in charge. Does this REALLY suprise anyone? Link to comment Share on other sites More sharing options...
techboy Posted September 14, 2009 Share Posted September 14, 2009 I'm having a tough time deciding what I want done here. On the one hand, as a libertarian, I'm genetically disposed against government interventions like stepping in and breaking up private companies. On the other hand, they're only that big now because the government stuck its nose in. Maybe I'll just go into isolation in the mountains for 20 years and come back when it's all blown over. Link to comment Share on other sites More sharing options...
SkinsHokieFan Posted September 14, 2009 Author Share Posted September 14, 2009 I'm having a tough time deciding what I want done here. On the one hand, as a libertarian, I'm genetically disposed against government interventions like stepping in and breaking up private companies. On the other hand, they're only that big now because the government stuck its nose in.Maybe I'll just go into isolation in the mountains for 20 years and come back when it's all blown over. I also don't think libertarianism is about having a few big corporations control 95 percent of everything, including the President's cabinet and Treasury dept Very strong anti trust law, and financial disclosure enforcement needs to occur. If investors have proper rational information, they will make rational decisions Link to comment Share on other sites More sharing options...
HOF44 Posted September 14, 2009 Share Posted September 14, 2009 Very strong anti trust law, and financial disclosure enforcement needs to occur. If investors have proper rational information, they will make rational decisions I agree completely with you on this. However Corporate America owns the Dem's and Repub's, so not sure how it will ever come about. Link to comment Share on other sites More sharing options...
Thiebear Posted September 14, 2009 Share Posted September 14, 2009 Anti trust laws: To include the FED and Fannie/Freddie.. Link to comment Share on other sites More sharing options...
techboy Posted September 14, 2009 Share Posted September 14, 2009 Anti trust laws: To include the FED and Fannie/Freddie.. Can we throw in the entire Federal Government, while we're at it? Link to comment Share on other sites More sharing options...
AsburySkinsFan Posted September 14, 2009 Share Posted September 14, 2009 maybe we need to go farther than this and break up some of the bigger banks. :whoknows: Can you imagine the screeching howl that would rise up if this were suggested by the administration? Link to comment Share on other sites More sharing options...
Toe Jam Posted September 14, 2009 Share Posted September 14, 2009 Can you imagine the screeching howl that would rise up if this were suggested by the administration? Yep. Link to comment Share on other sites More sharing options...
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