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  • 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. [View news story]
    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!
    Apr 16 03:00 PM | Likes Like |Link to Comment
  • A bipartisan Senate bill would force all banks to hold capital of 10% and those with over $400B in assets an extra 5%. The strictest provisions would hit six banks: JPMorgan (JPM), BofA (BAC), Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS) and Morgan Stanley (MS). Analysts reckon the bill has little chance of becoming law, although its authors reckon support for the measures are growing. [View news story]
    Obama never asked the banks to lower requirements. Never.

    The question is not about preserving the banks profit margins but in maintaining liquidity so that the public doesn't have to rescue them. As a previous reader stated, it only has to go wrong once, as it did in '08.
    Apr 8 01:33 AM | Likes Like |Link to Comment