Foreclosuregate: Time to Break Up Too-Big-to-Fail Banks (via Bear Market News)

Posted: October 16, 2010 in Foreclosure

Although downplayed by most media accounts and popular financial analysts, crippling bank losses from foreclosure flaws appear to be imminent and unavoidable. The defects prompting the “RoboSigning Scandal” are not mere technicalities but are inherent to the securitization process. They cannot be cured. This deep-seated fraud is already explicitly outlined in publicly available lawsuits.There is, however, no need to panic, no need for TARP II, and no need for legislation to further conceal the fraud and push the inevitable failure of the too-big-to-fail banks into the future.

Federal regulators now have the tools to take control and set things right. The Wall Street giants escaped the Volcker Rule, which would have limited their size, and the Brown-Kaufman amendment, which would have broken up the largest six banks outright; but the financial reform bill has us covered. The Kanjorski amendment-which slipped past lobbyists largely unnoticed-allows federal regulators to preemptively break up large financial institutions that pose a threat to U.S. financial or economic stability.

Foreclosuregate: Time to Break Up Too-Big-to-Fail Banks Published on Friday, October 15, 2010 by YES! Magazine Foreclosuregate: Time to Break Up the Too-Big-to-Fail Banks? With risky behavior by big finance again threatening economic stability, how can we get things right this time? by Ellen Brown Looming losses from the mortgage scandal dubbed "foreclosuregate" may qualify as the sort of systemic risk that, under the new financial reform bill, warrants the breakup of the too-big-to-fail banks. The Ka … Read More

via Bear Market News

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s