While the repeal of Glass-Steagall was certainly a part of making our system fragile to the point where it is at today, thinking that a simple solution like breaking up the banks will be the panacea that we seek is incredibly naïve.
Sandy Weill's Citigroup engaged in fraud on a massive scale, unfettered risk taking and then needed a massive taxpayer bailout during the 2008 financial crisis because it was so big it couldn't be managed. Yet only now does Weill say it was all a mistake.
Sandy Weill has finally seen the light. It's a bit late in the day, but, hey, he's already cashed in. You and I and millions of others in the United States and elsewhere around the world are still paying the price.
I am incensed that no CEO of a major corporation who is alleged to have contributed to the Great Recession has been pursued criminally. All of us have read and heard the phrase, "Too big to fail." I have suggested an add-on: "Too big to jail."
The banking lobby misrepresents the situation in two ways. First, they foster the belief that the economy needs lower rates to 'get going.' Second, the banking lobby likes to pretend that there is no alternative.
As reports that the JPMorgan Chase trading debacle may lead to losses of $9 billion, it's critical that our nation understand what is, and is not, acceptable behavior for a bank in our capitalist economy.