This posted by Deputy Treasury Secretary Neal Wolin on the White House blog would make even Pinocchio ashamed.
"[W]e already know that whatever bill comes to the President’s desk will end the problem of 'too big to fail.' It will end taxpayer-funded bailouts. And it will make sure that American families and businesses never have to foot the bill for the irresponsibility of Wall Street."
Sure it will. Just like the reforms passed after the bank failures of the early 1990s did, and the ones passed in early 1980s before them. However, I do agree with this part:
"If you’re a family trying to buy your first house, a parent trying to fund your child’s education, an employee trying to save for retirement, or an entrepreneur trying to expand your business, you have a stake in financial reform."
Unfortunately, though, the financial reform bill means that even those with good credit will have a more difficult time finding a loan and end up paying more for it.
If your bank or credit union did not have FDIC - what would happen?
ReplyDeleteFDIC does not keep banks from failing. If a bank fails, they break it up and sell off it's assets and make the depositors whole.
Isn't that the same idea behind the financial reforms now being undertaken?
Not even close. Take the consumer financial protection bureau that will be created. It will have sweeping powers over banks yet it's not responsible for ensuring the safety and soundnesss of the banking system. And with Elizabeth Warren in charge, it will be disastrous for the free market - not to mention bank customers.
ReplyDeleteno. I asked if you supported the concept of the FDIC.
ReplyDeletewhat's your answer.
Is the FDIC "disastrous" to bank depositors Lloyd?
ReplyDeleteThe FDIC is totally unrelated to what we're talking about here.
ReplyDeleteI don't think so Lloyd. The CONCEPT behind the FDIC is the same concept behind Financial Reform.
ReplyDeleteBut let's pretend it's not and just let me ask you if you support the concept behind FDIC?
Do you support the concept of the Government forming an insurance pool for fees charged to banks and looking into those banks financials and deciding when to intervene and take over the bank.
do you support the FDIC?