Dallas Fed President: Break up the Banks, End ‘Too Big to Fail’
- Posted on April 3, 2012 at 5:20pm by
Becket Adams
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A recent report by the Federal Reserve Board of Dallas accuses the nation’s largest banks of being “a perversion of capitalism” and “a clear and present danger to the U.S. economy.”
The report titled “Choosing the Road to Prosperity Why We Must End Too Big to Fail—Now“ goes on to say the infamous Dodd-Frank bill, which was supposed to “regulate” the financial industry, “may actually perpetuate an already dangerous trend of increasing banking industry concentration.”
JPMorgan, Bank of America, Citigroup, Wells Fargo and U.S. Bancorp, hold 52 percent of all U.S. deposits, according to the report, which makes that whole “too big to fail” problem seems a lot worse now than it did before Dodd-Frank.
In an effort to better understand the claims made in this report, PBS FRONTLINE interviewed the Dallas Fed CEO and president, former banker Richard W. Fisher.
According to Fisher, it’s time to break up the banks and end “too big to fail.”
Watch Fisher discuss the fact that so much in concentrated ”in so few hands” (via PBS FRONTLINE):
“Dodd-Frank proposes to solve this problem by giving the government ‘resolution authority’ to dismantle a big bank, but Fisher suggests a better solution is to not allow banks to get so big,” PBS’ Sarah Moughty writes.
Watch Fisher discuss Dodd-Frank (via PBS FRONTLINE):
“Fisher argues that now is an ideal time to solve this problem. Regulators feared that aggressive steps to end the ‘too big to fail’ problem during the crisis would further destabilize an already delicate system,” Moughty writes.
“But now that the financial system is healthier, and the normal lending and borrowing that keeps the system liquid has been restored, the risks have lessened,” she adds.
According to Fisher, “liquidity is abundant” and the time is now to break up “too big to fail” (via PBS FRONTLINE):
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Comments (53)
ElChupaCabraDeUSA
Posted on April 3, 2012 at 10:02pmThis guy is absolutely right. Unfortunately the regional Fed banks have no decision making power. All the decisions are dictated out of the NY Fed. The corrupt NY Fed is the responsible for 100 years of theft of the American people’s wealth. The financial system as it exists today is the single biggest threat to our future sovereignty and the NY Fed is pulling all the strings and funneling our fiat money to every other central bank in the world.
Report Post »EndTheFedNOW
Posted on April 3, 2012 at 11:17pmIts funny he says that. As little as 10 years ago, people would call you crazy for saying the Fed is private. Now its common knowledge. The fed ended glass stegel. The Fed signed us onto trillions in derivatives. The Fed has total control over our financial system, the whole thing. Congress and the President has no say over what they do. Sure they can be called to speak in front of the congress but they have no control over them. The Fed is why we are broke. Wake up. End the Fed.
Report Post »texasbeta
Posted on April 4, 2012 at 12:46pmActually, Gramm, Bliley and Leach ended Glass Steagall in a vote in Congress. Did you go to school? Do you know how laws are made? Obviously not.
Report Post »Dr. Joel Fleischman
Posted on April 4, 2012 at 7:42pmTexasbeta, we all know you get your info from the clowns on MSDNC…
Report Post »MeMadMax
Posted on April 3, 2012 at 9:02pmLooking at it wrong….
The big banks are controlled by the Fed. The fed is controlled by the treasury and congress and the presidency……………………………………
Big banks are created by the government…..
Report Post »texrubarts
Posted on April 3, 2012 at 11:57pmI admire this Fed Dallas guy! But to add to your comment – Obama owns the Fed so therefore – Obama is the King – crowned by no other than — himself!!! LOL … (^”^)
Report Post »grumpyt
Posted on April 4, 2012 at 5:52amYou @memadmax need to be schooled a bit more.
Report Post »rickroland
Posted on April 3, 2012 at 8:58pmYou can bet that the stock holders of the Federal Reserve (private bankers) are *not* going to like this sentiment one bit!
And I hope that Congress can grow a collective pair (as it would require both of the major parties to stop their freakin’ two-faced bickering for a while) and dismantle the Federal Reserve and finally take back their Constitution derived power to coin money (hopefully, with a major increase in responsibility and putting country and its citizens before party).
Report Post »pavnvet
Posted on April 4, 2012 at 11:05amHoly cow! Common sense…that idea sure won’t go far.
Report Post »KidCharlemagne
Posted on April 3, 2012 at 8:21pmBefore Ron Paul vs. the Federal Reserve……..there was Andrew Jackson vs. the Second Bank of the United States:
——————————
Report Post »“The paper system being founded on public confidence and having of itself no intrinsic value, it is liable to great and sudden fluctuations, thereby rendering property insecure and the wages of labor unsteady and uncertain. The corporations which create the paper money can not be relied upon to keep the circulating medium uniform in amount. In times of prosperity, when confidence is high, they are tempted by the prospect of gain or by the influence of those who hope to profit by it to extend their issues of paper beyond the bounds of discretion and the reasonable demands of business; and when these issues have been pushed on from day to day, until public confidence is at length shaken, then a reaction takes place, and they immediately withdraw the credits they have given, suddenly curtail their issues, and produce an unexpected and ruinous contraction of the circulating medium, which is felt by the whole community. The banks by this means save themselves, and the mischievous consequences of their imprudence or cupidity are visited upon the public. Nor does the evil stop here. These ebbs and flows in the currency and these indiscreet extensions of credit naturally engender a spirit of speculation injurious to the habits and character of the people.”
-President Andrew Jackson, Farewell Address, March 4, 1837
Silat
Posted on April 3, 2012 at 9:47pmThis was not written by one of today’s graduates! Harvard nor Yale could produce such written talent today.
Report Post »Onowicit
Posted on April 3, 2012 at 8:11pmTo be or not to be.
Report Post »I just love how smart these asses are. It‘s like watching Star wars without any Jedi’s. Their all Sith Lords fighting for power. I am not smart enough to know what would happen if we ended the FED or broke up the…..I do know that whatever is happening is not because of Capitalism and “free trade” and if it all comes crashing down even half way, That’s fine with me. I hope things can be fixed, but I don’t have high hopes in people like this or the other guys. America needs to repent! spiritually and monetarily. I have no idea what I just said except something about Jedi’s and I know thins aint right.
duhwut
Posted on April 3, 2012 at 10:34pmduh…wut?
Report Post »ProbIemSoIver
Posted on April 3, 2012 at 8:01pmThe Global Banksters are the Root of ALL our Political Problems in America.
Report Post »The “United States of America” is the enemy of America and the American people.
The “United States of America” is a CORPORATION established in 1871, now owned by the banksters, due to a loan in 1913 and the default of that loan in 1933.
http://www.youtube.com/watch?v=jOixE2ZFYtE
ProbIemSoIver
Posted on April 3, 2012 at 8:29pmAmerica has been Bankrupt since 1933, That is when YOU were pledged to the Federal Reserve PRIVATE BANK as a DEBT SLAVE !!!
http://www.youtube.com/watch?v=IlCs7u1ihws
“Under The District of Columbia Organic Act of 1871 a private corporation named, “The District of Columbia”, was formed. It trademarked the names “THE UNITED STATES GOVERNMENT”, “United States”, “U.S.”, “U.S.A.”, “USA”, and “America”.
http://www.teamlaw.net/history.htm
“It is Historical knowledge that the original Union States created the Federal Government, however, for all practical purposes, the Federal government has taken control of her “Creators”, the States.) She has become a beast out of control for power. She has for her trade names the following: “United States”, “U.S.”, “U.S.A.”, “United States of America”, Washington D.C., District of Columbia, Feds. and Federal Government. She has her own U.S. Army, Navy, Air Force, Marines, Parks, Post Office etc. Because she is claiming to be bankrupt, she freely gives her land, her personnel, and the money she steals from the Americans via the IRS and her state corporations, to the United Nations and the International Bankers as payment for her debt. The UN and the International Bankers use this money and services for various world wide projects, including war.”
Report Post »http://www.barefootsworld.net/usfraud.html
suzy000
Posted on April 3, 2012 at 7:59pmAmerica knows he is right…the problem is that the government authorized B.of A. , Wells Fargo and Citigroup to buy out other banks and financial institutions with TARP (taxpayer) funds. After all that would one really think that Wells Fargo or B.of A. let go some of those assets they had to turn around? Not in a New York minute!
Report Post »Silversmith
Posted on April 3, 2012 at 7:52pmToo big to fail removes the inherent and necessary risk in the capitalist system that allows SELF CORRECTION. It’s not painless, but it works. And you don‘t fix what ain’t broke!!!!
Silversmith
Report Post »SHOWMESTATEGUY
Posted on April 3, 2012 at 7:49pmBreak up the big banks? I agree with that. Too big to fail means when they fail the taxpayer picks up the bill. Don’t worry though, Obama and the dem libs would never break up the big banks, they get to much campaign money from them.
Do you people know that BO got more money from Wall Street and the banking industry than the Republicans last cycle? BO and the dem libs would no more break up the big banks of America than they would break up the government public service unions of America. Heck man, you don‘t kill the cow that’s giving you the milk to stay alive.
Before we all forget!! It was Dodd – Frank and the dem libs that were in bed with the financial instutions of America during the 1990‘s and 2000’s, they brought us to the brink. We are still at the brink, will we fall off the cliff or retreat to safer ground?
Vote BO and vote for falling off the cliff, how your parachute is in good working order sucker.
Report Post »CulperGang
Posted on April 3, 2012 at 7:36pmRichard Fisher=NWO rothchild banker shill. HE is one of the architects of and peversions of The Federal Reserve. Fisher belongs in cuffs along with Bernanke and Geithner.
Michael Savage is on the radio now talking about trickle up poverty via the FedRes.
TAKE A GOOD LOOK AT THIS CRIMINAL. These fools are so isolated that he does not realize ‘THE JIG IS UP FOOL.’ Humanity knows who you are and what you represent. You’ll get it when the Bastile is stormed.
God Bless M. savage he dares to talk about the nWO and the garbage in the WH.
Report Post »TheePolitinator
Posted on April 3, 2012 at 8:01pmExactly lol. These criminals have robbed many Nations across the globe of trillions of dollars. I say we prosecute them all, seize the money, give it back to the people of the nations these crooks have robbed blind and put them in prison where they belong. I also love these so called experts on sites like TheBlaze, stations like fox and all the leftwing loon stations that NEVER ask the questions because they lack the balls to do so. Don’t get me wrong I like TheBlaze and GB, I just think they go on and on and never do what its actually going to take to end this.
It’s simple, get the heads of the CIA, FBI and Homeland Security in a room. Show them the EVIDENCE against all these elite criminals and prosecute and seize their hordes of cash. Modern day mafia. This Nation was overthrown DEC 23 1913 by The Rothchild Crime family. We all know who else is involved, People need to stop idolizing our elected as if they were rock stars, They are the problem, globalists and enemies of this nation. This of course will take an actual non corrupt President, and Romney and Santorum, Gingrich are not this. A true conservative Ron Paul persecuted by left and right because they all know he will end corruption in both parties.
Report Post »Ruckus_Tom
Posted on April 3, 2012 at 8:42pmHaven’t listened to Mr. Savage in about a year because he was taken off all, and I mean all, local radio stations.
I kind of forgot about listening to him online. Thanks for the reminder.
Got him tuned in from WFTL 850 … and O’Reilly on mute with the captions on.
Report Post »Windsong
Posted on April 3, 2012 at 7:28pmThe FED needs to go…as do both Dodd and Frank and their ridiculous bill.
Report Post »Every small town has a bank. They used to be owned privately – until the large banks began buying them up and greedily trying to become ‘number 1 bank’.
So, we need to go back to the small banks. Did you know that they actually know the names of every customer? Did you know that everyone gets personal attention upon their entry into said banks. Did you know that many of us would keep our money in lock boxes, matresses, cupboards or buried at some undisclosed location rather than open an account with a big bank. Did you know that millions of us paid off then cancelled credit cards to get away from the FED and big banks?
At some point, the government, the FED, and unelected czars like Cass Sunstein will discover that they have leaned so hard on the tax-paying, honest Americans that they actually knocked us over. Of course, that happened a few years ago. Apparently what they haven’t noticed is that we have all stood up, brushed ourselves off and locked arms.
So, if the FED tries to close small banks, we will borrow from our trusted friends or go without. If the government decides to monitor our conversations and/or E-mails, we will unplug. If they continue on their quest to eliminate food, beef, oil, etc., the contingency plans within our communities, states, nation and internationally will kick in.
Bottom line? We don‘t need daddy’s and nanny’s and czars. But, they need us
Windsong
Posted on April 3, 2012 at 7:26pmThe FED needs to go…as do both Dodd and Frank and their ridiculous bill.
Report Post »Every small town has a bank. They used to be owned privately – until the large banks began buying them up and greedily trying to become ‘number 1 bank’.
So, we need to go back to the small banks. Did you know that they actually know the names of every customer? Did you know that everyone gets personal attention upon their entry into said banks. Did you know that many of us would keep our money in lock boxes, matresses, cupboards or buried at some undisclosed location rather than open an account with a big bank. Did you know that millions of us paid off then cancelled credit cards to get away from the FED and big banks?
At some point, the government, the FED, and unelected czars like Cass Sunstein will discover that they have leaned so hard on the tax-paying, honest Americans that they actually knocked us over. Of course, that happened a few years ago. Apparently what they haven’t noticed is that we have all stood up, brushed ourselves off and locked arms.
So, if the FED tries to close small banks, we will borrow from our trusted friends or go without. If the government decides to monitor our conversations and/or E-mails, we will unplug. If they continue on their quest to eliminate food, beef, oil, etc., the contingency plans within our communities, states, nation and internationally will kick in.
Bottom line? We don‘t need daddy’s and nanny’s and czars. But, they need us.
KidCharlemagne
Posted on April 3, 2012 at 7:20pm“Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, I will rout you out!”
Report Post »– President Andrew Jackson, Philadelphia, PA, February 1834
Micah.Stone
Posted on April 3, 2012 at 7:08pmreckless, irresponsible, out-of-control, treasonous, bailout bernanke and the other despicable members of the fed – who’s primarily purpose is to ensure mufti-billion dollar profits for their pals in the BIG BANKS and on Wall Street – are a corrupt bunch of self-serving, insider-trading jackals who deserve to be in prison, rather than manipulating markets to create recurring bubbles that hurt the middle class and the poor and thwart overall economic progress. I’ll bet that fisher and the rest of these criminals have a plan to personally profit from any break-up of the big banks. Then, instead of working to guarantee humongous profits at the big banks, they’ll work equally hard to guaranteed humongous profits and all the little banks.
Report Post »mymissusisanutter
Posted on April 3, 2012 at 6:52pmThis is an old story, Max Keiser was talking about this a week ago. We need to remember that both parties supported the bank bailouts, it wasn’t just Dems. We need to kick the big corporations out of our government. End the SuperPACs!
Report Post »The big banks and corporations are the ones who run DC.
3monkeysmomma
Posted on April 3, 2012 at 7:11pmThis goes beyound bailouts. One of the stated reasons our found faught the Revolutionary War was so the US would have the right to issue debt-free currency. We have betrayed that pricipal…yes..both parties. It‘s time to end the Federal Reserve’s exclusive charter and find a way to return to sound money.
The bank bailouts aren’t the problem, they are just the most obvious symtom of the problem.
Report Post »capitalismrocks
Posted on April 3, 2012 at 6:50pmThis is how it should be, let them fail, break up and be bought out in pieces by smaller, more competitive banks and let them fix themselves. They don’t need bailouts, they need to go through the normal chain of failure, sale, breakup, buyout, and in the end a lot of tiny banks will get pieces of the pie that they buy from these big failures and they will grow and end up hiring a lot of people from these bigger banks and in the end, it all equalizes and actually get better because then there will be more banks, more competition, better rates, better offerings… in the end, its the consumers that benefit and the tax payers don’t spend a dime.
Report Post »soybomb315
Posted on April 3, 2012 at 5:58pmwe dont have to break up the banks – all we have to do is stop the federal reserve from giving them sweetheart deals and lines of credit. The problem is that the fed has MADE the banks as big as they are today.
The problem is the FED, The problem is the FED, The problem is the FED, The problem is the FED
Report Post »Itsjusttim
Posted on April 3, 2012 at 6:20pmLook at it this way, either they will break up the Fed or God will break it up, and they won’t like the way God does it.
Report Post »HKS
Posted on April 3, 2012 at 5:53pmI thought we did all of this kind of stuff before, did someone undo it? Poor ma bell.
Report Post »Mamma Bear
Posted on April 3, 2012 at 5:53pmThis way by design and the fools at these banks bought into this idea that they won’t eat their own. Been screaming this for the past 3 years with all the new rules and regulations – Frank Dodd, etc. Totally by design so they would say with certainity that they really are too big to fail! Chase and BOA were the worse at buying to load of SHI!
Report Post »Churchill
Posted on April 3, 2012 at 5:43pmEND THE FED!!!
Ron Paul 2012!!
Report Post »heavyduty
Posted on April 3, 2012 at 5:34pmA better idea is to break up the GOVERNMENT, then they won’t fail. While they are at it, break up the UNIONS also.
Report Post »MetalPatriot
Posted on April 3, 2012 at 5:33pmThanks for posting Blaze
Special thanks to Mr. Fisher for his courage & good work.
Report Post »Micmac
Posted on April 3, 2012 at 5:30pmWe do not have normal lending and borrowing…what planet is this guy from?
Some of these banks help run the Fed. Frankly, JPM IS the Fed.
It’s Corporatism that is the problem ATM. But Corporatism fits in nicely with anyone trying to create a socialist economy.
NoBama 2012
Report Post »soybomb315
Posted on April 3, 2012 at 6:02pmif the fed would just stop with the explicit baking of these banks – natural forces such as collateral and insurance bonding would be essentially a cap on the size of these banks….as it is now, the insurance they have to pay is waaaaaay too small compared to their size. any smaller bank pays realistic rates
Report Post »IndyGuy
Posted on April 3, 2012 at 5:27pmThis is America…NOBODY is too big to fail…The bailouts were flatout theft from the American Taxpayer…People should be in prison…Including Presidents…
Report Post »Snowleopard {gallery of cat folks}
Posted on April 3, 2012 at 5:22pmA very simple idea: Shrink government, end the massive usurption of authority by the Fed’s and get Kaiser Obama out of office.
Report Post »soybomb315
Posted on April 3, 2012 at 6:04pmlike squeezing a sponge – all we have to do is shrink government and the rest will follow.
we can shrink it by starving it, legislating it, or refusing it
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