Posted on 06/13/2012 9:44:25 AM PDT by libertarian neocon
While listening to the Jamie Dimon testimony before the Senate Banking, Housing and Urban Affairs Committee today, I was struck by a comment by one of the Senators. He mentioned that he had heard, but hasn't verified, that in the last year no new bank charters were granted. If true that is very damning. We know that banks continue to shutter and if no new ones come on to take their place, that could explain some of our current malaise. It looks like what that Senator had heard is true. Here is what I got from the FDIC statistics:
The bigger banks can absorb it, the smaller banks cant. I would not be surprised to see half of the community banks in this country go out of business if we dont give some relief from Dodd-Frank for them... I think that Dodd-Frank is a terrible piece of financial legislation. It didnt address any of the causes of the crisis that we just went through. It wont prevent the next crisis. Its heaped volumes and volumes of regulations.As Jamie Dimon testified today, he currently has hundreds of regulators onsite at any one time at JP Morgan, but with all the changes, they aren't clear who is in charge of what or who has the authority to do anything. And this is JP Morgan which has an army of lawyers guiding them through the regulatory jungle. If he is lost, community banks have no hope. No wonder there has been almost no new banks formed.
Successful new small business formation follows suit.
Tell the big banks to get lost. Move your cards, loans and deposits to a Credit Union or local bank to get better service and lower costs. The big banks have gotten bigger and not only can’t fail, but can’t fail to profit at your and taxpayer expense.
Tell the big banks to get lost. Move your cards, loans and deposits to a Credit Union or local bank to get better service and lower costs. The big banks have gotten bigger and not only can’t fail, but can’t fail to profit at your and taxpayer expense.
you know what is fascinating, and I think very true....is that there are large amounts of large corporation cash out there, from some handsome profits over the last few years....there is some consumer cash out there and there is some entrepreneurial spirit which is pent up out there such as these banks that want/need to get formed.
I believe personally that the climate which obama has created is one of such uncertainty that much economic activity that “could” take place is simply being delayed till the second week in November.
I don’t think that Romney even needs to “do” anything...I would wager that we see a huge amount of hires in late November and December, just b/c the uncertainty of what is coming is gone.
I know that sounds sort of psychological, and it is.
But mass psychology does play a role here when you have a POTUS who is so destructive.
Time will tell. But I think there will be a huge spike inhiring, GDP and in the stock market as soon as obama loses, and well before Romney is sworn in, and well before he actually “does” anything....
Not to worry, as the Left appears ready to leap into the breech with the concept of “public option banks” (already trying this out in several states).
I am appalled, hundreds!
The senator was Nebraskan Mike Johanns.
Hopefully we may not need to wait until November. If it becomes obvious that Obama will be defeated in November the markets will react. Note that in Summer of 2008 everything went to hell as soon as it became obvious that Obama was going to be the nominee against McCain. The level of uncertainty by business executives soared and they started cutting back on everything...and it hasn't yet recovered.
I heard that. Fewer charters for banks for the first time in over 70 years. The senator did say the actual number of years but I’ve forgotten if it was 75 or 79...He said he heard it just last night and still to be verified.
I thought Dimon was an excellent witness - quite professional and easy to understand why he has the job he has and no BS.. Sure would be nice if we had ANY member of the administration (Holder anyone?) OR CONGRESS who could give such straight forward answers to questions. I don’t even believe that all members on the committee understood fully the questions they asked or Dimon’s answers.
An old boss of mine actually has talked to Dimon in person (their daughters were both sorority sisters at Duke) and he says he is very much an authentic straight shooter. He’s tough but a straight shooter.
His answers were actually very good and he did a very good job of explaining how tough the current regulatory regime is.
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