Too big to fail? Or just too big to nail?

By
Real Estate Agent with 1st Action Real Estate

The four biggest banks in the country now control 62% of all bank assets in this country, up from 54% five years ago when housing/banking troubles started. According to the Wall Street Journal, 

  • JP Morgan/Chase assets have increased from $1.3 trillion to $2.3 trillion 
  • Bank of America has grown from $1.4 to $2.2 trillion 
  • Citibank has edged up from $1.8 to $1.9 trillion 
  • Wells Fargo has gone from $.5 to $1.3 trillion 

During the same five year period, housing prices have tumbled by 50% or more in some markets and home sales, job growth and consumer confidence continue to stagnate across the country.. 

These banks that were billed as 'too big to fail' were massively bailed out by the federal government. They have used that money to shore up their profitability, pay executive bonuses and gobble up smaller banks that were not 'too big to fail'. Meanwhile they steadfastly refuse to clean up the problems they created and have held a true recovery in the housing market in abeyance by allowing the foreclosure crisis to drag on and refusing to inject private capital into the mortgage market. 

They continue to spend lavishly trying to overthrow those portions of  Dodd/Frank that limit their ability to soak the public (i.e. debit card swipe fees) while attempting to circumvent older regulations preventing their entry into real estate and other investment markets. 

Too big to fail? Or just too big to nail? Maybe a couple high profile perp-walks would catch their attention. Any of you federal law enforcement types, regulatory weenies or other do-gooders got the balls to sweat Angelo under the bright lights? Naw, I didn't think so. 

And the beat goes on.   

pig

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Rainmaker
343,373
Vern Eaton
Askov, MN
Realtor 320-630-6995

To big is much of theproblem.  Anyone trying  to do the right thing gets buried in attorney fees.

Dec 07, 2011 04:54 PM #1
Rainmaker
160,731
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

What if the system is working as designed. What if the Federal Reserve, The Council of Foreign Relations, etc. were created by these international bankers to benefit themselves in the future? Maybe this will open your eyes: None dare call it a conspiracy

Dec 07, 2011 05:44 PM #2
Rainmaker
390,812
Karl Hess
Keller Williams Ocean County - Toms River, NJ
on The Jersey Shore

If you saw 60 Minutes on Sunday, you really will wonder why no one has been prosecuted.  Also, here's a link to 60 Minutes Overtime; Behind the financial crisis: A fraud investigator talks.

"It's been three years since the financial crisis crippled the American economy," Steve Kroft begins his 60 Minutes piece this week. "[Yet] there has not been a single prosecution of a high ranking Wall Street executive or major financial firm."

Dec 07, 2011 07:47 PM #3
Ambassador
2,471,274
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

The banks got just what they paid for, a two presidents, two secretaries of the treasury, a fed chairman and a congress.  That's why we don't hear them complaining. 

Dec 08, 2011 05:45 AM #4
Rainer
142,517
Linda Piper
Planatek Financial, Inc. - Westlake Village, CA

Just watched the 60 Minutes link posted by Karl.  Thank you for this.

No one seems to have the courage to fix the ROOT CAUSE of this mess!  If the investment community hadn't created a market where they were willing to purchase a loan that had been made to anyone willing to lie to obtain it, this process could not have moved forward!  The banking system is the most highly regulated and "supervised" business in the US and look where it lead us...shameful!

Dec 08, 2011 11:52 AM #5
Rainmaker
683,647
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Great post - suggested. If it hits the featured blog roll it will make for some very lively discussion. 

Dec 08, 2011 02:59 PM #6
Rainmaker
225,495
Gene Wunderlich
1st Action Real Estate - Murrieta, CA
Realtor & Legislative Liaison

The 60 minutes piece summarized what a lot of us already knew - that in spite of rolling the country to the brink of financial disaster nobody, NOBODY, has been tagged yet. Angelo got a little slap on the wrist but most of the rest of the perps are still in place and getting richer. The politico's love to point fingers but since it was their hand stirring the pot, they're not too anxous to take it any further. In reality, they created the environment for this kind of chicanery to flourish, then they pronounced it good and profitable right up until the wheels came off the train. Then they got all self-righteous and indignant for a couple minutes and then sat back and prayed it would all blow over.

Dec 08, 2011 07:44 PM #7
Rainmaker
390,812
Karl Hess
Keller Williams Ocean County - Toms River, NJ
on The Jersey Shore

Gene, comment #7 is EXACTLY on target!

Dec 10, 2011 07:55 AM #8
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Rainmaker
225,495

Gene Wunderlich

Realtor & Legislative Liaison
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