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ROUBINI: The U.S. Banking System Is Worse Off Than Ever
TBI ^ | 10-3-2012 | Michael Kaplan

Posted on 10/03/2012 1:58:25 PM PDT by blam

ROUBINI: The U.S. Banking System Is Worse Off Than Ever

Michael Kaplan
October 3, 2012

Another massive financial crisis is what's needed to break up the big banks, which are facing a problem that has not gone away, Nouriel Roubini said on "Bloomberg Surveillance" this morning.

Appearing with Ian Bremmer, president of the Eurasia group, Roubini said that the banks that were too big to fail before the financial crisis, are even bigger and more problematic now due to mass consolidation.

Roubini, who predicted the 2008 financial crisis, said:

"The only solution to to break up too big to fail banks. There is no other alternative. We have to go back to Glass-Steagall. I would have thought after the worst global financial crisis in a generation, the decision would have been made. Maybe we need another big financial crisis. For the time being, the politics will not lead us there."

Bremmer, a prominent political scientist, added he agrees the political leadership to break up the banks isn't coming anytime soon.

He said:

"We are too big to fail and that has only become more true since 2008. It is the reason why people continue to put more money in our equities and our treasuries."

Watch the video below:(Go to the site to view the video)

(snip)

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: banking; economy; finance; recession

1 posted on 10/03/2012 1:58:28 PM PDT by blam
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To: blam

When men and women of financial institutions realize that they can make horrendously risky decisions with no fear of real consequences for those decisions, the system will be utterly corrupted and massive catastrophic failure will be inevitable............


2 posted on 10/03/2012 2:11:38 PM PDT by Red Badger (Is it just me, or is Hillary! starting to look like Benjamin Franklin?.................)
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To: blam

Roubini is an attention whore.


3 posted on 10/03/2012 2:16:59 PM PDT by WashingtonSource
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To: Red Badger
Grammar police here.

You misused future tense in your sentence. You need to use the past tense for more accuracy.

When men and women of financial institutions realized that they could make horrendously risky decisions with no fear of real consequences for those decisions, the system was utterly corrupted and massive catastrophic failure will be inevitable............

4 posted on 10/03/2012 2:18:16 PM PDT by KarlInOhio ("Government is the only thing that we all belong to"=implicit repeal of the 13th amendment for all.)
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To: blam

Neither Presidential candidate will step out of line on this - otherwise, they never would have been nominated. The TBTF banks are just going to have to fail, first.


5 posted on 10/03/2012 2:18:21 PM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: KarlInOhio

I was on a different timeline..........


6 posted on 10/03/2012 2:24:25 PM PDT by Red Badger (Is it just me, or is Hillary! starting to look like Benjamin Franklin?.................)
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To: blam

I read somewhere that QE3 went to buy bad mortgages. Did it go to the big banks, or Freddie and Fanny?


7 posted on 10/03/2012 3:19:41 PM PDT by aimhigh
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