Financial Reform Law Institutionalizes ‘Too Big To Fail’

We talked about the stupidity of the financial reform bill before they passed that 2,000 page monstrosity that includes the Office of Financial Research to track every single financial transaction in the country, but now the rest of the country might just find out how bad the Dodd-Frank law actually is.

Bloomberg has put out a report (see video link below) showing that the ‘too big to fail’ banks actually grew into mega-banks during the financial crisis through the gobbling up of rivals.

This is not big news but these facts might be:

  • The US banking sector has grown 7 times faster than GDP.
  • The top ten banks hold 77% of the country’s assets.
  • The five biggest banks hold 58% of the financial system’s assets.
  • Any bank with more than $50 Billion is ‘statistically significant’ (too big to fail) and there are now 35 of these too big banks.
  • Banks are larger than pre-crisis levels.
  • The number of ‘too big to fail banks’ could grow by 40% over the next 15 years.

March 18 (Bloomberg) — The largest U.S. banks have grown larger since the financial crisis, and the number of “too-big-to-fail” banks will increase by 40 percent over the next 15 years, according to data compiled by Bloomberg. The Dodd-Frank law would prohibit the largest banks from merging with one another. The law would not prevent the largest banks from growing in other ways, according to the Bloomberg Government Study, “Too-Big-to-Fail Banks Get Bigger After Dodd-Frank.” Bloomberg’s Lizzie O’Leary reports. (Source: Bloomberg)

You can watch the entire Bloomberg video here, and are you still financially involved with one of these megabanks?

 

 

 

2 thoughts on “Financial Reform Law Institutionalizes ‘Too Big To Fail’

  1. Wait until it all goes into effect April 1st. The new rules are nothing short of squeezing more money out of people’s pockets in a recession. This sure mimicks a monopoly. There are laws against monopolies.

  2. This bill is just like the healthcare mess. Just more regulations on the regular guys, not the favored perks of Washington democrats who’s depending on them re-electing the same old progressives and following the bidding of George Soros and his over 500 organizations. He is now openly bragging about dismantling the dollar and turning us into some kind of third world country and yet the liberals can’t see 2 inches before their noses. Don’t they know that they will be the first to be pushed under the bus when all Obama, liberals, and Soros accomplish what they have been working on for years? Useful idiots is what the unions and teachers unions call our college students-what do they call the rest of their followers??? Nothing Obama has done is good for America-nothing…God bless America and we must all stick together, pray, email your reps, stay in touch with others likeminded on the internet and in your neighborhood and number one on our agenda must be “no violence” or we will be imprisoned and be the means for this bunch to prove their point for others.

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