Frank Says ‘Death Panels’ Await Failing Banks Under New Law

10/25/10

[Libloather]

Link only - “We do have death panels”

[Libloather]

In response to a student’s question about careers in the financial-services industry, Frank said he hoped there would be fewer Wall Street jobs in coming years.

The rookie Hussein ain't gonna like that crack (so-to-speak).

In case you haven't heard - Barney Frank’s Boyfriend Is Becoming Our Favorite Political Spouse

[RitaOK]

I am thinking it is time for Americans to pick a side in this fight. We need to stand beside and behind the local banks and defend them against the bullying from Washington with our tax dollars, overegulation and threats coming out of DC. The details are convoluted of who’s on second, who’s on first, but believe that is also is on purpose, to delay our picking sides. Cutting to the chase, we can deal with banks AFTER we deal with Washington seizing on every opportunity to destroy capitalism. Whadaya think??

[Oldexpat]

The failure of the small banks continues, but the big banks are being kept afloat with bogus securities that are nearly worthless the Fed either bought from them or values at unrealistic levels. BofA, Wells, Citi..they are all too big to fail and too big not to profit.

[RitaOK]

The failure of the small banks continues,...”
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Well, where do we stand in regard to our small or local banks? This is a fight that needs citizen participents. Can we not start again, with supporting or start ups of small banks, of the people, by the people and for the people, locally”?? Just asking.

[TopQuark]

"We need to stand beside and behind the local banks "

It's an interesting slip here --- "local banks."

Why this distinction from "non-local" banks, and how do you determine which one is which.

[TopQuark]

"We need to stand beside and behind the local banks "

It's an interesting slip here --- "local banks."

Why this distinction from "non-local" banks, and how do you determine which one is which.

[RitaOK]

Why this distinction from “non-local” banks, and how do you determine which one is which.
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“Small” was perhaps the misnomer. Sorry. I’m thinking small local family banks in the county or district, credit unions, community banks, as opposed to banks sponsored by BOA.

[TopQuark]

Thanks for the clarification, Rita. But why do make the distinction: “ small local family banks in the county or district, credit unions, community banks, as opposed to banks sponsored by BOA?”

[MortMan]

I guess he didn’t read the bill. The phrase “death panel” isn’t mentioned anywhere in the text of that bill!

[Major Matt Mason]

“I would hope some years from now the financial industry will have shrunk some, because there was a lot of activity that should never have happened, from subprime lending to credit default swaps,” Frank said.

Never mind that mostly Dem policies were responsible for the subprime mess. This quote could be a major faux pas at a time when many people are unemployed. A politician making this kind of statement rarely is a good thing for that candidate.

[Major Matt Mason]

I just sent an e-mail to Bielat's campaign about this quote. I think it would make for a good, last, minute campaign ad.

[RitaOK]

Well, suppose you just explain to me what you think I mean for Pete’s sake. I want to be informed and I am not, but I lean toward supporting a “smaller” banking system, not at the mercy of tricky home mortgage lenders, who are closer to the people. What do you think I mean. I am a capitalist if that helps.

[TopQuark]

"I lean toward supporting a “smaller” banking system, not at the mercy of tricky home mortgage lenders"

That is what caught my attention. As many other people, you assume that "small" is cozy. It is not. Go get a loan from a small bank in a small Alabama town, where the board of directors consists of almost every businessman in town and his wife, and you happen to offend any of them in any way --- by trying to date one of their children or some such thing. Small communities create all sorts of barriers, "relationships" work both ways.

The other side of the assumption is also erroneous. Big banks are always small --- in the sense that you always deal with the local branch. It is "cozy" because the officers are also local people, like in a small bank. But, if you feel you are not served properly, there is at least whom to complain to --- in New York if necessary.

I would also add that small banks are more risky. Following your sentiment, we had laws on our books in the beginning of the last century that confined banks to 50 mi radius. That is largely why so many of them went bankrupt in the Great Depression. All of their customers were from the same area, ALL susceptible to the same downturns in real estate, grain, etc. Canada did not have this stupid law, which was actually stated as protection of local banks from big out-of-towners (read "New York") banks.

Finally and most importantly, lenders in the last few years were not any more sneaky than before. The Community Reinvestment Act of 1998 (Clinton) mandated that banks relax lending standards to stimulate home-ownership in inner cities. The percentage of bad loans was specified and uncreated gradually --- to 52% in 2007. Just think about it: half of all loans goind to people that could not pay them back. These loans were supposed to be, and actually were, bought by Freddy Mac and Fannie May. What were bankers supposed to do? Naturally, they started to "overlook" certain details on applications. Socialists now, as they did for most of the 20th century, try to anger you at the banks: this keeps your attention aways from the politicians (Barney Frans, Maxine Waters who were supervising this program). Be angry, but have the right focus.