Today bank stocks are bid as JP Morgan reported its much gamed Q1 earnings ‘beat’ of lowered profit growth expectations. We will know we have come through this crazy lawless time, when the masses and policy makers speak of today’s law-breaking, fine-paying, ‘TBTF’ executives as people of ill repute rather than admired business leaders worthy of extravagant compensation and privilege. This news clip from April 12, 1938 gives a flavor of what that looks like. See the video here: Sing Sing Gates close on Richard Whitney (former head of the New York Stock Exchange)
Meanwhile the complex Dodd Frank reforms have been largely ineffective because they lacked the critical piece– breaking up the investment bank conglomerates and their destructive, queering influence over policy, politicians, financial advice and free markets. In the present arrangement depositors and thus taxpayers remain still fully exposed to the next wave of investment bank insolvency. And it is coming. Will the executives get to keep all the profits and accolades while taking taxpayer funds to bail them out again?
Five out of eight of the biggest U.S. banks do not have credible plans for winding down operations during a crisis without the help of public money, federal regulators said on Wednesday, saying the institutions could face stricter oversight if they do not fix their plans.
The “living wills” that the Federal Reserve and Federal Deposit Insurance Corporation jointly agreed were not credible came from Bank of America, Bank of New York Mellon, JPMorgan Chase, State Street, Wells Fargo.
Here is a direct video link.
Yes. works beautifully for them.