Posted on 10/17/2009 7:34:00 PM PDT by combat_boots
Warning: Mildly rough language contained herein. Don't gripe, you were warned in advance not to read this if you'll be offended!
You have to be kidding me.....
From Larry Summers:
"Financial institutions that have benefited from government support can, should and must use this moment to think about what they can do for their country -- by accepting the necessary regulation to protect the American people," Summers said in remarks prepared for delivery at the Economist's Buttonwood Gathering in New York. "There is no financial institution that exists today that is not the direct or indirect beneficiary of trillions of dollars of taxpayer support for the financial system."
How about this Larry?
"Financial institutions will be placed under strong regulation and capital controls. We will mark every asset to the market, we will investigate all the fraud, we will force all off-balance sheet "assets" back on balance sheet and we will stop the looting."
Oh wait. I live in America, where the banks run the Congress, not the other way around. Never mind a President and Chairman of House Financial Services who can't manage to get up off their knees, and they're not praying when they genuflect either.
I've had it with the knob-polishing behavior of these jackasses in DC, especially when it comes to letters like this:
Banks should be given three years to raise capital for offsetting assets and liabilities that must be brought onto their balance sheets, Citigroup Chief Financial Officer John Gerspach said yesterday in a letter to regulators. Requiring banks to “assume the risk-based capital effects immediately, or even over one year, is an undeniably severe penalty,” he wrote.
What?
(Excerpt) Read more at market-ticker.denninger.net ...
“Citibank, JP Morgan and the rest have all known about this for more than two years. They have had all this time to prepare for this event, they have had all this time to raise capital, they have had buoyant stock prices occasioned by FASB being literally extorted by Congress into allowing banks to lie about asset values, thereby cranking their stock prices up by 300, 400, even 600%. Specifically:
Citibank, $0.97 -> $4.59, 473%
Bank of America, $2.53 -> $17.26, 682%
JP Morgan, $14.96 -> $47.47, 317%
Wells Fargo, $7.80 -> $30.02, 384%”
Hopefully the regulation will be so bad that it will discourage other businesses from lining up at the welfare trough.
Hopefully the regulation will be so bad that it will discourage other businesses from lining up at the welfare trough.
Don’t get too far in over your head on some of these assumptions. Some banks were asked to come in. When they did, they were informed they were going to be getting government funds whether they wanted them or not. Once they got the funds, the government wouldn’t allow some of them to pay the funds back when they wanted to.
Then the government told them they would have government oversight because they had taken government funds.
From my point of view, thinking government oversight will resolve issues is like saying Congress won’t vote itself raises because times are tough.
As long as the government SPENDS more than it TAKES IN, then they are at the mercy of the banks, and the banks are kind of free to do what the hey they want.
If the government TOOK IN more than it SPENT, then the banks WOULD BE COMPETING to get the governments business, and they would follow all prescribed regulations.
Pretty simple.
Who is Larry kidding? Is this a joke?
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