Sunday, July 29, 2012

TBTF-Man Has Come-To-Jeebus Moment

According to Robert Reich, Sanford Weill, the individual Reich says is more responsible than anyone else for Wall Street banks' "too big to fail" status, has finally got religion and thinks TBTF is a bad idea... after he has already cashed in, of course:

[Sanford] Weill created the business model that Wall Street uses to this day — unleashing traders to make big, risky bets with other peoples’ money that deliver gigantic bonuses when they turn out well and cost taxpayers dearly when they don’t. And Weill made a fortune – as did all the other executives and traders. JPMorgan and Bank of America soon followed Weill’s example with their own mega-deals, and their bonus pools exploded as well.

Citigroup was bailed out in 2008, as was much of the rest of the Street, but that didn’t alter the business model in any fundamental way. The Street neutered the Dodd-Frank act that was supposed to stop the gambling. JPMorgan, headed by one of Weill’s protégés, Jamie Dimon, just lost $5.8 billion on some risky bets. Dimon continues to claim that giant banks like his can be managed so as to avoid any risk to taxpayers.

Sandy Weill has finally seen the light. It’s a bit late in the day, but, hey, he’s already cashed in. You and I and millions of others in the United States and elsewhere around the world are still paying the price.


"Summertime... and the livin' is eeeeeasy..." if you live by banksters' rules.

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