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Too Big to Fail

Larry Summers Is Lying About Big Banks

Zach Carter | Posted 05.25.2011 | Business
Zach Carter

Today's megabanks aren't just too-big-to-fail, they're too-big-to-regulate. If Democrats want to salvage their political credibility, they now have no choice now but to push to break up the banks.

Gretchen Morgenson: Leading Financial Reform Proposals Won't Stop 'Bailout Buffet'

New York Times | GRETCHEN MORGENSON | Posted 05.25.2011 | Business

EVERY once in a while, Congress awakens from its lobbyist-induced torpor, realizes that the masses are cranky and sets out to appease them. Such a mom...

The Bank Lobby Gets Desperate on Derivatives

Zach Carter | Posted 05.25.2011 | Business
Zach Carter

As bankers fight to defeat tough new rules on derivatives, all their sloganeers can come up with is that serious rules will send this business overseas. It'd be funny if Congress weren't taking it seriously.

'Chuck Prince' Is Going To Run This Bank (Into The Ground)

Simon Johnson | Posted 05.25.2011 | Business
Simon Johnson

The following is also posted on Johnson's blog, BaselineScenario.com. "Breaking up big banks would actually increase system risk" is a refrain heard f...

Ryan Grim

Senate Test Vote Shows Broad Support For Breaking Up Banks

HuffingtonPost.com | Ryan Grim | Posted 05.25.2011 | Business

A test vote in the Senate Budget Committee on Thursday showed stronger support in the chamber for breaking up big banks than had previously been suspe...

You Can Help Break up Too Big to Fail Mega-Banks: Here's How

Miles Mogulescu | Posted 05.25.2011 | Politics
Miles Mogulescu

Representatives Sherrod Brown and Ted Kaufman have introduced the "Safe Banking Act" which would put a hard cap of 3% of Gross Domestic Product on the assets of all bank holding companies.

'13 Bankers': How Big Are The Biggest Banks? If Derivatives Aren't Counted We Won't Know

James Kwak | Posted 05.25.2011 | Books
James Kwak

We need to have a more accurate grip on just how big our largest financial institutions already are, in order to show how much damage could be caused to the financial system in a crisis.

No More Deceit -- Strictly Regulate Wall Street

Leo W. Gerard | Posted 05.25.2011 | Business
Leo W. Gerard

If McConnell-style deceit about the financial reform bill continues in the Senate, serious regulatory reform won't happen. Half measures won't work. Only robust financial reform will end Wall Street's freedom to deceive.

Shahien Nasiripour

Larry Summers Defends Megabanks, Says Too Many Small Banks Make U.S. 'Less Stable'

HuffingtonPost.com | Shahien Nasiripour | Posted 05.25.2011 | Business

President Barack Obama's top economic adviser defended megabanks Thursday, arguing that breaking them up serves no purpose and that a proliferation of...

Sarah Palin is Seizing The Populist Moment -- Will Democrats?

Zach Carter | Posted 05.25.2011 | Politics
Zach Carter

Sarah Palin's broadside against the Obama administration's Wall Street reform proposal is an interesting study in, well, hackery. One the one hand, he...

In The Public Interest: My Top Ten List of Things to Watch For at Today's Wall Street Reform Conference

Ed Mierzwinski | Posted 05.25.2011 | Politics
Ed Mierzwinski

The good news is that both the House and Senate passed Wall Street reform bills including a strong, new, independent consumer agency.

How to Fix the Wall Street Reform Bill

Zach Carter | Posted 05.25.2011 | Business
Zach Carter

Washington has tied itself in knots trying to find a way to thwart "too big to fail" without cutting megabanks down to size. It can't be done. When something is too big, the solution is to make it smaller.

Shahien Nasiripour

Obama Cooper Union Speech: Financial Reform Speech To Keep Pressure On Wall Street

HuffingtonPost.com | Shahien Nasiripour | Posted 05.25.2011 | Business

With Goldman Sachs's top leaders in attendance, President Barack Obama urged financial executives to work with him in passing the financial reform bil...

The Speech: The Good, The Bad and The Missing

Dylan Ratigan | Posted 05.25.2011 | Business
Dylan Ratigan

The revolving door between government regulators and the high-paying banks they supposedly regulate remains as fluid as ever. None of what Obama said today matters while our cops still work for the crooks.

Make the Call or Get Out of the Booth: After the President's "Wall Street" Speech

Simon Johnson | Posted 05.25.2011 | Business
Simon Johnson

The president's rhetoric today at Cooper Union was commendable. But there is still the awkward question of legislation that would actually reduce the political power of big banks.

Stop Talking About "Breaking Up The Banks" -- Size Is Not the Problem

Henry Blodget | Posted 05.25.2011 | Business
Henry Blodget

The right way to eliminate "Too Big To Fail" is to create a mechanism by which any financial institution can fail without taking the system down with it.

The Best Solution to Vampire Squid? Calamari

Mary Bottari | Posted 05.25.2011 | Business
Mary Bottari

The financial services reform bill will be debated in the Senate next week. The great test for the bill will be what it does to rein in Goldman Sachs,...

The President Has Spoken. Now Let's Help Him Act.

Richard (RJ) Eskow | Posted 05.25.2011 | Politics
Richard (RJ) Eskow

Obama's speech walked a line between vision and reality. At times it seemed an internal dialog between the technocrat who sees the problems and how to fix them, and the pragmatist who wants to reap the rewards from whatever bill gets passed.

Fraud in Banking, Fraud in Message

Mike Lux | Posted 05.25.2011 | Business
Mike Lux

The banking wars are in full scale battle mode. We are going to see a lot more of this faux populism paid for by bailed out bankers before the year is through, and progressives have to be quick to expose it.

Will the Real Obama Please Stand Up for Reform? Six Ways to Know if the Financial Reforms Are for Real

Les Leopold | Posted 05.25.2011 | Politics
Les Leopold

Obama's working from a flawed theory: "There is no dividing line between Main Street and Wall Street. We are all in this together as one nation." Really? The entire story of this crisis is about how we are not in this together.

Financial Reform: What Should The President Say On Thursday?

The Baseline Scenario | Simon Johnson | Posted 05.25.2011 | Business

On Thursday, President Obama will give one of the defining speeches of his presidency. Most presidents are remembered for only 2 or 3 policies or eve...

Is Being Anti-Goldman Sachs Being Anti-American?

Don McNay | Posted 05.25.2011 | Business
Don McNay

The real scandal of the entire bailout mess was how money was funneled through AIG to pay "counterparties" like Goldman Sachs 100 cents on the dollar.

Goldman Sachs in Troubled Waters

Georges Ugeux | Posted 05.25.2011 | Business
Georges Ugeux

Wall Street has long forgotten how to spell "ethical" or "good," and replaced it with "compliant" and "legal." The time has come to explain to investment banks what their responsibility and accountability are.

Time To Declare War on Big: Killing America's Giants

Rob Kall | Posted 05.25.2011 | Business
Rob Kall

Big corporations destroy cultures.

Weekly Audit: How Deregulation Fueled Goldman Sachs' Scam

The Media Consortium | Posted 05.25.2011 | Home
The Media Consortium

by Zach Carter, Media Consortium blogger Last week, the Securities and Exchange Commission filed fraud charges against Goldman Sachs and underscored w...