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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Topic:
ActiveRain Community
Groups:
Crap
Dissent
Realtors®
Silent Majority
The Lounge at Active Rain
Tags:
banking
bank of america
jp morgan chase
wells fargo
citibank

Comments 8 New Comment

Ambassador
2,276,175
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

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. 

December 08, 2011 05:45 AM
Rainer
116,483
Linda Piper
Planatek Financial, Inc.

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!

December 08, 2011 11:52 AM
Rainmaker
675,823
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605

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

December 08, 2011 02:59 PM
Rainmaker
224,999
Gene Wunderlich
Realtor & Legislative Liaison
1st Action Real Estate

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.

December 08, 2011 07:44 PM
Rainmaker
376,755
Karl Hess
on The Jersey Shore
Keller Williams Ocean County

Gene, comment #7 is EXACTLY on target!

December 10, 2011 07:55 AM
Rainmaker
224,999

Gene Wunderlich

Realtor & Legislative Liaison
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