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The Brown/Vitter bill being rolled out in Congress is essentially Armageddon to the TBTF banks,...

The Brown/Vitter bill being rolled out in Congress is essentially Armageddon to the TBTF banks, says Goldman, seeing it as mandating another $1.1T in equity for the banking system. Banks would need 12 years of earnings to build this amount organically, though the bill would give just 5 - say goodbye to lending. Break up the banks? BAC, C, JPM, and WFC all have multiple divisions with more than $400M in assets - the level at which the bill gets tough on lenders.
Comments (22)
  • Well it is the democrat desire to destroy the US economy. This is a good start.
    15 Apr 2013, 12:32 PM Reply Like
  • Vitter is a Democrat? When did that happen?
    15 Apr 2013, 12:39 PM Reply Like
  • you just lost all credibility with that comment.



    I must've missed the memo where he was a Democrat
    15 Apr 2013, 01:25 PM Reply Like
  • I like that car!!! Lambo?
    15 Apr 2013, 01:51 PM Reply Like
  • My Bad. I do apologize to all those who actually vote for growth polices and it looks like Vitter is one. Looking at his record I have a hard time understanding his support for this bill.
    15 Apr 2013, 10:03 PM Reply Like
  • You have a hard time because your original comment was reactionary and asinine. Does "vote for growth" mean allowing the banks free reign with public money/guarantees? Maybe we should have just sent the bill for 2007 directly to you!
    16 Apr 2013, 03:00 PM Reply Like
  • GS is a green-eyed monster and is attempting to cast doubt on the big banks' ability to weather the storm that may occur from this proposed bill, which has yet to be signed into law. I do believe that the Feds owe the big banks big-time from the bail-out of smaller banks, so some compromise may be struck that will enable the banks to shed its toxic assets and comply with the overly-strict provisions of this proposed bill, even if it should become law.
    15 Apr 2013, 01:51 PM Reply Like
  • Just wait until banks start making getting a loan so difficult no one (partic 99% ers) can get one.


    Already seeing it start to happen.


    Wells Fargo has been lender to friend of mine. A retired company exec. Retired early because he could. Bank will not refi his house now even though loan to value is less than 20%. Banks are soooo afraid of regulators and politicos they won't do anything. Will see mortgage loan originations drop.
    15 Apr 2013, 02:29 PM Reply Like
  • There must be some other issue with your friend. I have been retired four years and just did my second refi in two years with Wells Fargo (15 yr fixed @ 2.75%) on a loan to value ratio of around 50%.
    15 Apr 2013, 11:27 PM Reply Like
  • For those who've not be apprised of how precarious the big banks are at risk, you should be reading Ellen Brown's many articles and books on the TBTF banks. It's devastating.
    15 Apr 2013, 03:29 PM Reply Like
  • no thanks
    15 Apr 2013, 03:31 PM Reply Like
  • Just more congressional schmucks desperate for headlines in a headline desperate media - please ignore the trolls.


    never happen.
    15 Apr 2013, 04:08 PM Reply Like
  • Another hare-brained politician, how did the best business newspaper, the Financial Times of London,
    comment on the US Senate = "there are ony five members who have some basic understanding of international finance "


    so. these guys are formulating our destiny = "sayonara!"


    Frankfurt Germany
    15 Apr 2013, 05:26 PM Reply Like
  • Are you sure RALPH? ("Sayonara" translates as "if it must be so"...)
    16 Apr 2013, 09:25 AM Reply Like
  • I think everyone recognizes that the TBTF banks have been and still remain in a rather precarious situation, what with so many toxic assets that are still on the books. But I dare say that they've come a long way, as they've been cleaning up the past mess quite a bit and continue to do so, until everything is resolved, which may take up to 5 years to be free and clear, depending on how the various markets are performing. So, we shouldn't make the situation worse by trumpeting the negative issues all the time. If that is the case, then we might as well get out of the banks together, or short them, if we have the guts to do so, instead of singing the same song all the time whenever anyone has something positive to say about the banks. Let's be fair to ourselves and to all others who are into the TBTF banks.
    15 Apr 2013, 06:20 PM Reply Like
  • Have we got some fantastic politicians, or what?
    15 Apr 2013, 09:30 PM Reply Like
  • "If that is the case, then we might as well get out of the banks together, or short them,"


    Hmmmm...there are a lot of stocks out there that actually produce something, or have a PRODUCT worth investing in.
    15 Apr 2013, 10:35 PM Reply Like
  • always, you seem to have an unending beef with the banks, which is OK. Then, stay clear of the banks and do something with other stocks, as you had said. But, it doesn't serve any purpose to beat up on the banks and offend those who are heavily invested in them. I presume you don't hold any bank stocks, which is fine, but others will continue making money playing with those stocks, regardless of what you and I have to say. Peace be with you and may your day be better than last Monday, when we're all depressed by the cowardly massacre at the Boston Marathon.


    BTW, the Boston officials should have let the remaining runners finish the marathon, instead of cancelling it and leaving the runners unsure of what to do (thousands of bags with belongings of these lost runners remained unclaimed, as of this morning), as a gesture of defiance to the terrorists that americans will not cower and be defeated by cowardly attacks on innocent lives. This is why we fight these terrorists overseas rather than let them come to our shores to sow destruction among us. Jihadists are now celebrating all over the world, which will encourage them to do more damage to us, instead of keeping them occupied overseas. We killed thousands of them from all over the world in Afghan and Iraq. Now, they're killing us at home.....
    17 Apr 2013, 08:32 AM Reply Like
  • Benitus,


    Yes, I do have a beef with the banks. But it is not with you, so please don't take it personal.


    I just sat with a woman today who received a check from the Foreclosure Review committee acknowledging the fact that her foreclosure is fraudulent. Yet in spite of the fraud they found she is still losing her home. Will they tell her what fraud they found, so she can sue the lender for their fraudulent practices? The answer is "No", the banks are protected over the rights of the people.


    Last month, I saw a single mother's home trashed out by movers hired by the Lenders (I won't say who). She had a court order telling them that they could not do this until she had her day in court, yet they did it anyway. Yes, her lawyer is suing for civil rights violations, however, she was forced to move in with her sister and send her daughter to her mother's. They are separated. The movers did not even leave her with a change of underwear and this woman had a job with responsibilities.


    As you speak of "terrorists" overseas, lenders are selling our land in bulk to overseas investors at pennies on the dollar. They do not need to 'come to our shores', they are buying our shores.


    How can we be okay with all the devastation happening in our country as long as there are "dividends". Your right, my meager stock holdings are held elsewhere, but as shareholders of any stock, do we abdicate our principles in the interest of profits?


    " Did you know that Moynihan excersized 23k shares of options today and sold them rather than keep them? Its just a thorn in my side, that BAC is not yet giving CASH back to shareholders."

    18 Apr 2013, 12:22 AM Reply Like
  • these stupid politicians will make sure that the Chinese banks all larger already than US TBTF , will eat up the the US banking business,
    these morons will decimate the US banking industry while China provides 100 % banking to ICBC , CCB , BofChina etc
    and we will finish with pigmy institutions in the US and Chinese banking will dominate international banking


    for Gwynfrin - I thought sayonara meant good bye-that is what I wanted to ay
    16 Apr 2013, 10:29 AM Reply Like
  • RAL, I guessed that was the case; after all, why would the Japanese have an equivalent to "goodbye" (a contraction of "god be with ye")?


    Don't you think it's cool, the way I attached my response directly to your comment (so people know at a glance, what I responded to)?
    16 Apr 2013, 12:02 PM Reply Like
  • HI -Gqwynfryn - agreed ! - it is cool ! for sure - as to the explanation the Japanese have also some God I thought - so why not " good bye "
    in colloqial terms for every day use ?


    I thought that Alpha had deleted my comments because I called some dim witted politicians " mxxxxx" as in Europe but just the same in the US it seems,most politicians have an intellectual horizon at the frontier of their village of the last 50 years
    there is one big difference , most inEurope, France is an egregious example just see for Francois Hollande, but also the socialists in Germany ( ie SPD), because of that big issue of financial envy ( = NEID), can only think about to milk with ever increasing taxes of all kinds (no limit to imagination)
    the better off in the name of "social justice", social eqilibrium in English terms, the US luckily abhors " socialism"
    16 Apr 2013, 06:02 PM Reply Like
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