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Rahm Emanuel’s Too Big To Fail Lie
Rahm Emanuel’s Too Big To Fail Lie
Courtesy of Joshua M Brown, The Reformed Broker
Rahm Emanuel, likable and appealing as he seems to be, stood on stage at the DNC and told a huge lie within the first few paragraphs of his speech. He made it sound as if his former boss didn't blow the biggest opportunity of all time to remove systemic banking risk from our national nightmare…
From the text of his speech:
Banks are slowly but surely lending again, and never again will taxpayers foot the bill for Wall Street's excesses. In case we forgot, that was the change we believed in. That was the change we fought for. That was the change President Obama delivered.
Actually, the next time one of the Systemic Six banks blows up – and one of them certainly will – taxpayers will without a doubt be at risk. Who else could possibly be counted on to absorb the shock that would come along with one of these monsters collapsing again?
And the numbers involved have only gotten bigger! Because instead of serious regulation and a real unwind of these stupid giants, we got Dodd-Frankenstein, the bastard stepchild of a pair of lame duck senators who spent their entire careers in captured copulation with the finance industry's lobbyists.
There was a chance for us to break up big banks for the good of the country but we tackled healthcare instead. We came up with a healthcare bill the nation wasn't ready for and most business people hate. Well-intentioned but stupidly timed and horribly executed. It didn't even actually pass, they had to put it through the same trick door in the floor as the Bush tax cuts were shoved through in 2002-2003.
And this was done at the expense of what could have been accomplished during this crucial window with the banks. In this once in a lifetime moment, and with a mandate to fix the banking system that other presidents could only have dreamt of, Obama could've undone the entire excessive risk culture and brought back a return to normalized financial institutions in this country.
He did not. He allowed them to get bigger. Simon Johnson reminds us that "In 1995, the Big Six – JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs Group and Morgan Stanley – had assets worth only…
2012-09-05 22:00:56
Source: http://www.philstockworld.com/2012/09/05/rahm-emanuels-too-big-to-fail-lie-the-reformed-broker/
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