Perki

WSJ: A Frightening Indictment of Our Society

Well, acting in the best interests of their shareholders is the bank's mission. If this act was not clearly illegal, the banks may have a fudciary responsibility to do this to maximize shareholder value.

A less glaring example of this would be not passing on interest rate reductions and availability of reserves freed by the Fed loaning against marginal mortgages, when that was specifically the intention of the generosity of the Treasury/Fed.

Clearly, the banking system is now a less useful instrument of monetary policy, and congress should investigate the possibility of revoking the guarantee of deposits, which is noting more that a big subsidy for the banking industry.