Seeking Alpha
Seeking Alpha Portfolio App for iPad
Finance
(1)
Market Currents

Banks that are too big and too complex to control operations "are too big. Period." - Dallas Fed...

  • Friday, May 11, 2012, 10:06 AM ET
    Banks that are too big and too complex to control operations "are too big. Period." - Dallas Fed President Fisher today, following a speech lauding the banks and economy of Texas. The Dallas Fed has been highly vocal of late about ending TBTF, suggesting not just the reasons, but also the way to go about it.
Track new comments on this story

This news story has 12 comments:

  •  
    I still say that having a TBTF bank from The USA such as JPM,C,BAC is so much better than having to deal with a Russian or Chinese TBTF bank. At least as soon as possible we have a Jaimie Dimon get in front of the world with a mea culpa. Would that be the case with the above mentioned banks waiting in the wings?
    11 May 2012, 10:17 AM Reply Like
  •  
    What possible difference does the speed of the mea culpa make if the idiots crash the banking system again?
    11 May 2012, 10:24 AM Reply Like
  •  
    Before Dimon's mea culpa he said that the synthetic trades were a tempest in a teapot. It wasn't until regulators exposed JPM trades that he had the "come to Jesus moment".
    11 May 2012, 04:19 PM Reply Like
  •  
    Why not operate like the Canadian banks. Fix the problem once and for all. Let the cookies fall where they may. Nationalize the banks . Have 10 or 15 Charter banks following strict guidelines. Seems like Grade 3 page 4 stuff to me.
    11 May 2012, 10:32 AM Reply Like
  •  
    Yes, and I don't trust anything that these greedy Texas billionaires say. They are just trying to figure out another way to skin the cat and line their pockets with gold thread. Don't trust em!
    11 May 2012, 10:54 AM Reply Like
  •  
    Our Canadian banks are sound, secure and not subject to bouts of greed and avaris that the whole structure of the banking industry would be threatened by financial instruments that offer big rewards but cause devastation! Our US cousins would be better to let us run their banking system and stop printing money from thin air! You are going to have the second north american peso!
    11 May 2012, 11:07 AM Reply Like
  •  
    Who would have thought, JPM, of all banks, would be next to have to admit to rogue trading?!

    Check mate, Jamie Dimon! You aren't any smarter or less reckless than the rest of your banking colleagues. You were just luckier longer. If former employees are correct, the JPM Chief Investment Office "takes bigger and riskier bets under command of CEO Jamie Dimon (himself)". Yet, even if JD didn't give those orders himself, JPM risk management would be his prime obligation as Chairman and CEO of the Company. The buck has to stop somewhere!

    In sum, this proves beyond any reasonable doubt, that it's time for the Volcker Rule to be instituted without further ado, in order to reduce the risk of "too-big-to-fail" banks on the tax payers, not to mention investors. Glass-Steagall is the other rule, that must be reinstated promptly (even Paul Ryan agrees!) to protect Main Street from at least the most egregious abuses of Wall Street. How much longer do we have to wait, Mr Bernanke?!
    11 May 2012, 11:07 AM Reply Like
  •  
    Fisher probably also thinks that the U.S. economy is too large and complex to manage - he should retire!
    11 May 2012, 12:30 PM Reply Like
  •  
    Sorry, but TBTF is just an oxymoron. If we let one fail, then guess what, the others would be more careful. As it is, it's just a license to steal from middle class taxpayers.
    11 May 2012, 12:53 PM Reply Like
  •  
    Neil
    You are so wrong. You have not thought it out at all.
    If JPM fails what happens to Dimon? Nothing. Got that.
    Nothing. Except he gets his pension. severance pay, stock options, bonus, loans are forgiven, etc.
    Again nothing. HE HAS NO SKIN IN THE GAME.
    The regulators are useless.
    Here is what we need and it is not Frank-Dodd or ANY OTHER LAW.
    The problems of the banks could not of happened without the agencies dedicated to oversight ignoring their jobs. Even today the Dodd-Frank or ANY laws we have on the books will not suffice. There can still be another blackmail for bailouts.
    One or two sentences can stop this in the future but no one is willing to put those sentences into law.
    1. All personal assets will be forfeited if any abuse of funds is deemed to be inconsistent with the objectives of the institution goals. They will include, but not be limited to, cars, boats, houses, pensions, savings accounts, airplanes, etc.

    2. All misappropriations of funds will carry a felony criminal indictment with jail time. There will no longer be a FINE without admitting guilt.

    Pretty simple, huh???
    11 May 2012, 01:02 PM Reply Like
  •  
    The reason letting TBTF banks fail works is not because of Dimon, but because no one with money will trust the big banks (without the assured bailout) and they won't have any money to play with. So the next Dimon will have to be more responsible or will not have the job. In the long run this is much better than punishing Dimon (although if he broke the law then I am all for that too.)
    11 May 2012, 06:19 PM Reply Like
  •  
    TBTF is not really relevant. Even many small community banks lost sight of their commercial loan portfolios during the 2009-2011 period. The fact is that banks shouldn't be in risky businesses at all regardless of size.
    11 May 2012, 03:56 PM Reply Like
LATEST|
TODAY SO FAR|
YESTERDAY
Other date
DJIA (DIA) S&P 500 (SPY)
Latest Articles on Financials
More Latest Articles »