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Forum Post: Re. 'TBTF' : "Break Up Big Banks, Says Mega-Bank Pioneer", by Richard Davies.

Posted 2 years ago on July 26, 2012, 7:27 p.m. EST by shadz66 (19985)
This content is user submitted and not an official statement

"Break Up Big Banks, Says Mega-Bank Pioneer",

by Richard Davies.

It’s nothing less than a remarkable about-face. One of the architects of mega banking is now calling for the breakup of the world’s largest banks. Sandy Weill, formerly CEO of Citigroup, told CNBC : “What we should probably do is go and split up investment banking from banking, have banks be the deposit takers, have banks make commercial loans and real estate loans, have banks do something that’s not going to risk the taxpayer dollars, that’s not too big to fail.”

In the late '90′s Weill was a global banking pioneer, building Citi into a financial supermarket. Now : “I am suggesting that they be broken up so that the taxpayer will never be at risk,” said Weill, adding his voice to a growing chorus of regulators, and financial experts.

“Our system has been hijacked and we need to change it,” says Neil Barofsky, former special inspector general in charge of oversight of TARP. Breaking up the banks, says Barofsky, “is widely accepted.” Barofsky, who makes his case in the new book, “Bailout,” claims “the only people who have not accepted this it seems like is the big banks themselves and the politicians they seem to affectively control in Washington.”

Another scandal at a large financial firm … Nomura Securities CEO Kenichi Watanabe has resigned in the wake of an insider trading scandal at Japan’s biggest investment bank. Watanabe announced his resignation at a press conference in Tokyo. Takumi Shibata, another top executive at the bank, has also resigned. Watanabe, 59, will be replaced by Koji Nagai, the president of Nomura Securities, which is part of the Nomura banking empire. Japan’s financial regulators are investigating Nomura Securities for leaking information to clients ahead of planned securities offerings by energy company Inpex, Mizuho Financial Group and Tokyo Electric Power Co. in 2010.

What has the corporate earnings season told us so far ? Europe is a big drag on profits and sales. That was clear from disappointing earnings at UPS. Dow Chemical, Ford and Apple have also blamed their less-than-stellar numbers on a decline in European demand. “The corporate alarm bells highlight how the miserable economic conditions in much of Europe are spilling onto the global stage,” reports The Wall Street Journal.

Another low for the US Treasury 10-year note. Now down to 1.39 percent, as many investors buy US Treasuries as a safe alternative to stocks. The collapsing yield has prompted a fresh wave of mortgage refinancing.

Shares of online games company Zynga plunged 40 percent in after-market trading after it cut its full year outlook.

~

radix omnium malorum est cupiditas ...

~

by Richard Davies, Business Correspondent, ABC NEWS Radio.

[Article copied verbatim under "Fair Use" from : http://abcnews.go.com/blogs/business/2012/07/break-up-big-banks-says-mega-bank-pioneer-3/ ]

50 Comments

50 Comments


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[-] 3 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

The opening paragraph makes me think of Glass-Stegal.

I wonder if those resigned in disgrace Japanese big shots will commit sepuku - they would have in the old days for such a loss of face.

It is funny though - all of the people in the industry are only now considering what everyone but them seemed to know years ago.

[-] 0 points by shadz66 (19985) 2 years ago

I agree & consider that 'honour amongst bankers' is as mythical as 'honour amongst thieves'.

fiat justitia ...

[-] 2 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

Aint it the truth!!!!!

"The Size of the Big Banks Is – Literally – Destroying the Rule of Law"

[-] -3 points by shadz66 (19985) 2 years ago

'Double Ditto with extra sprinkles of twinkles' ~:-) and to accompany the 'forum-post' :

fiat lux ...

[-] 2 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

Ya know? I am actually starting to hear some of this stuff being talked about and not on the internet either. Could the proverbial fecal matter be about to hit the swiftly rotating blades of karma?

[-] -2 points by shadz66 (19985) 2 years ago

I sincerely hope so ~*~ Re. 'OWS', 'Banking and Banksterism' is THE Key Issue around which almost everyone from Anarchists, Socialists, Liberals, Conservatives and Libertarians & many points inbetween can unite around ... and 'The 0.01% Parasite Class' know it !!!

When money drives almost all activity on the planet, it's essential that we understand it. Yet simple questions often get overlooked - questions like : Where does money come from ? Who creates it ? Who decides how it gets used ? And what does that mean for the millions of ordinary people who suffer when money and finance breaks down ?

People should have an opportunity to bank with ethical and perhaps publicly owned banks. The very best ethical practices should be present in the 'market place' and should be encouraged, incentivised, promoted and rewarded 'in the market place' so we the people - The 99% - can make informed choices and arguably only 'Publicly Owned Banks' can do this - which is exactly why The Infernal Banksters will fight this idea tooth and nail !!!

Further, some other points on the matter of 'Publicly Owned Banks', which would allow :

1) The Democratic Accountability & Oversight over such behaviour as led to The 2008 Financial Crisis ;

2) Prevention of a culture of short-termism, 'moral-hazard', 'perverse incentives' and 'regulatory capture' ;

3) Profits to be ploughed back into "Society" rather than to 'private shareholders' (Foreign or otherwise) ;

4) Driving out 'bad banking practice rewarding greed' and favour & instil 'ethical' practices and behaviour ;

5) Genuine rewarding of savers - NOT fleecing them and driving them towards 'sharks' ;

6) A far more fair, rational, longer-term & more socially responsible outlook for lending ;

7) Reigning in dubious practices ("Innovative Financial Products" - CDOs, CDS's, 'Mortgage Backed Securities', et al & fraudulent behaviour - Bernie Madoff, Jon Corzine/MF Global, PMF, 'LIBOR' etc ;

8) Re-instilling Public Confidence by Accepting / Realising that Banking & Financial Services can NOT just be left to 'Selfish Short-Term Profit Motives' & Banking to be seen as a 'Strategic Public Utility' ;

9) Have you ever heard of 'The State Owned "Bank Of North Dakota" ? & IF NOT, then why not d'you think ? ( http://en.wikipedia.org/wiki/Bank_of_North_Dakota and http://banknd.nd.gov/ ) ;

10) The urgent reintroduction of 'Glass Steagal' AND a 'Financial Transaction / Tobin Tax'.

There is some degree of overlap in my points and almost guaranteed that one could argue the toss, so I leave you with something more substantial to read, reflect and ruminate upon :

dum spiro, spero ...

[-] 2 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

Smoke and mirrors

Bits

Bytes

Mega Bytes

Giga Bytes

Tera Bytes

Well then problem solved - everyone should be credited - AND - SHAZAM - The Meltdown never happened.

[-] -2 points by shadz66 (19985) 2 years ago

The Abject Tyranny of 'Compound Interest Generating Usurious Debt' & Modern Electronic Double Entry Bookkeeping, which is now so deeply embedded within a 'Mesmerising Mysterious & Magical 'Mythical Money Matrix' of 'Debt Based Fiat Money' - has us all enraptured, ensnared and entrapped - BUT ONLY until and unless we all decide together to wake up & say - WTF ?!!! - at which point, it dissolves at our collective realisation and ridicule and the 'tin pot emperors' are revealed as the evil avaricious naked pygmies that they actually are !!!

In just 4 words : "SAY NO TO USURY" !!

Phew, enjoyed that vent - thanx !

spero meliora ...

[-] 1 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

My pleasure - I enjoyed it too - feels good to get it out of your system - does it not? {:-])

People - vent at government - vent at the Banksters - vent at the corpoRATs - vent at the MSM ( corpoRAT owned media ).

Do it on social media after sending your righteous E-letters to these sources of abuse and mismanagement. Copy your communications/venting here to be shared by all for due consideration and then also twitter them or other wise place them out on social media for others to consider and share.

It feels good to get it out of your system and it can be useful motivation for others to get involved.

[-] -2 points by shadz66 (19985) 2 years ago

Yep, every drop adds to the deluge ; that promises to become an unstoppable wave ; that washes away the iniquities of "Privately Issued, Compound Interest Generating, Debt Based - 'Fiat' Money" and The Temporary Terrestrial Tyranny of The Corporate Bankster Parasites who control it !!!

per ardua ad astra ...

[-] 3 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

It is why the shills/quislings/trolls like to proclaim that OWS is dead - they figure that their only weapon may be to repeat a lie often enough that it will be believed.

OWS - Occupy - Is changing how people see the world. The movements are opening eyes to reality. And the growing awareness is beginning to be directed at the criminals in growing outrage and numbers.

[-] -2 points by shadz66 (19985) 2 years ago

Bottom Line : It's a numbers game ! We, The 99% are many - they, The 0.01% Parasites, are but few !!

Banking needs to be turned on its head & actually reward prudent savers and enable investment in individuals and societies instead of the uncontrolled and constant 'financialisation', 'debt-derivatives' etc. & the enabling of speculation and 'market manipulation' for fees, commissions and other private gains !!!

radix omnium malorum est cupiditas ...

[-] 1 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

Yep

[-] 2 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

From : The Other 98%

Yesterday, we took 30,000+ of your petition signatures to Chase headquarters in midtown Manhattan, with a simple message: Chase CEO Jamie Dimon shouldn't get to regulate Jamie Dimon - it's time for him to be removed from the Federal Reserve.

Today we unveil the video of our petition delivery, and introduce a new resource to fight the big banks: DumpDimon.com.

It's time to sack Jamie Dimon from the Fed, and we have big plans for amping up the pressure. This is just the first step, and if you can take a minute to share DumpDimon.com on Facebook and to tweet about DumpDimon.com on Twitter, we'd appreciate it immensely.

Click here to visit DumpDimon.com, and make sure to let at least 5 friends know about it.

Thank you for all that you do to make this movement real.

Sincerely,

Andrew Boyd, The Other 98%

[-] -1 points by shadz66 (19985) 2 years ago

Niiice ! Liking this !! 'Dump On Dimon' more like !!!

per ardua ad astra ...

[-] 2 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

Wasn't that a great little short video?

Right-on - Keep-on Keepin-on {:-])

[-] -1 points by shadz66 (19985) 2 years ago

Yep & "Regulatory Capture" by The Banksters requires nothing short of "Regulatory Recapture" by The 99% ... 'asap' & by any way necessary !!

ad iudicium ...

[-] 2 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

Give em all a madoff makeover - from riches to rags to prison.

[-] 2 points by beautifulworld (22091) 2 years ago

Very important, Shadz. Thanks for posting this. I'm not an expert but it sounds like Weil is calling for a return of Glass-Steagall or something close to it which is one of the things we need. Also, I couldn't help but notice Weil's humility as he spoke.

[-] -2 points by shadz66 (19985) 2 years ago

Also fyi' : "Insight : Banks bristle at breakup call from Sandy Weill", by Paritosh Bansal -"It's possible that the government would impose a Glass-Steagall type structure, especially if there's another blowup," said one Wall Street source. But, he added, "I doubt any bank would voluntarily do it." :

fiat lux ...

[-] -2 points by shadz66 (19985) 2 years ago

Ex senior banker, Weil possibly sees the house of cards for what it is - 'A Giant Ponzi Scheme of Debt and its Derivatives' and IF there is going to be anything whatsoever left of public confidence in banks, then 'Glass Steagall' is in effect an absolute 'sine qua non' of future banking realities.

As a personal aside, I am again left rather awestruck by your ability to still see some humanity in Weil, by way of his "humility". You try to see the good in almost everyone I feel and this probably speaks volumes about the kind of person that you are. The US is a better place for having citizens like you and indeed people like you embody the highest hopes and best part of The Citizenry of the USA.

Good luck to you 'bw' and those like you - in all your exemplary efforts to bring Compassion, Kindness, Mercy and Reason to bear on many matters on this forum and most probably elsewhere too. + 'fyi' :

  • "Living Paycheck To Paycheck Is Reality For Two In Five Households : Report ; According to a report from the Consumer Federation of America and the Consumer Planner Board of Standards, Inc., 38 percent of households live paycheck to paycheck. In 1997, this figure was 31 percent.": http://www.huffingtonpost.com/2012/07/25/living-paycheck-to-paycheck-2012_n_1702347.html &

  • "Poverty in America : Why Can’t We End It ? - Half the jobs in the nation pay less than $34,000 a year, according to the Economic Policy Institute. A quarter pay below the poverty line for a family of four, less than $23,000 annually.", by Prof. Peter Edelman (Georgetown University) : http://www.nytimes.com/2012/07/29/opinion/sunday/why-cant-we-end-poverty-in-america.html?_r=2 , "I have seen days of promise and days of darkness, and I’ve seen them more than once. All history is like that. The people have the power if they will use it, but they have to see that it is in their interest to do so." !!

pax, amor et lux ...

[-] 2 points by Nevada1 (4841) 2 years ago

Thank you shadz, for forum post. Years ago, it seemed like banks were chartered to function only in one state. Then they got giant, and the system failed.

Also, the idea of doing business with a bank that launders drug money, is disgusting.

[-] -1 points by shadz66 (19985) 2 years ago

Thanx 'Nev1' for your comment and observation, further to which, I append :

Finally, I repeat a quote from J.K.Galbraith (1908-2006) :

  • “The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled. With something so important, a deeper mystery seems only decent.”

ad iudicium ...

[-] 2 points by Nevada1 (4841) 2 years ago

Hi shadz, You always have such great links. Wow! Some shocking info.

[-] -2 points by shadz66 (19985) 2 years ago

Some more potentially "shocking info" bro' :

ipsa scientia potestas est ...

[-] 1 points by Nevada1 (4841) 2 years ago

Ouch! These guys never rest.

[-] -2 points by shadz66 (19985) 2 years ago

Aye 'Nev1' but neither do we ~;-) & thus, re.'Extreme Bankster Larceny', please also see :

e tenebris, lux ...

[-] 2 points by Nevada1 (4841) 2 years ago

Yes, always vigilant.

Excellent graphics.

[-] -2 points by shadz66 (19985) 2 years ago

Re. "excellent graphics", please also see :

re. 'The Imperial WAR Economy' ...

fiat pax ...

[-] 2 points by Nevada1 (4841) 2 years ago

Ouch---Nearly 1/2 military. Love graphics

[-] -2 points by shadz66 (19985) 2 years ago

"Over 1/2" actually by some other estimates !!!

multum in parvo ...

[-] 1 points by shadz66 (19985) 2 years ago

Further 'cross fertilising' this thread with :

ad iudicium ...

[-] 1 points by hchc (3297) from Tampa, FL 2 years ago

Very telling of our culture that this thread is getting no replies.

Thank you for posting this. These types of conversations is where its at.

Nice Post.

[-] -1 points by shadz66 (19985) 2 years ago

Thanx for your gracious comment and I also append :

e tenebris, lux ...

[-] 0 points by jimmycrackerson (940) from Blackfoot, ID 2 years ago

Haha, that's nice. Let's just run the banks into the ground and then "break them up" so we can distribute all the liabilities amongst unsuspecting schmucks.

The banks should have been broken up loooong ago. When they were actually doing well.

Another great example of how elites will reap the benefits of success for themselves. Then cop-out and try to push their failure and losses on everyone else.

[-] 0 points by shadz66 (19985) 2 years ago

Private Banks ran themselves "into the ground" and continue to do so. Their liabilities have already been passed onto The 99%, who due to the perversity of 'TBTF' are used to underwrite GS, JPMorgan, BoA & all the other banks all across the world, which still continue want to behave as before !!!

All over the world - austerity is the name of the crooked game, with 'Socialism' for The Parasitic 0.01% and 'Extreme Crapitalsm' for The 99% !! This unconscionable oppression can not abide !

spero meliora ...

[-] 0 points by jimmycrackerson (940) from Blackfoot, ID 2 years ago

That's kind of what I meant. I guess my first sentence was unintentionally speaking from the point of view of a bank owner.

[-] -2 points by shadz66 (19985) 2 years ago

Yes ... and as a result of a lifetime's MSM Propaganda perhaps ?!!!

Solidarity with your epiphany !!

e tenebris, lux !

[-] -1 points by shadz66 (19985) 2 years ago

Cross fertilizing this thread with the following :

fiat justitia ruat caelum ...

[-] -2 points by shadz66 (19985) 2 years ago

"How Will the 99% Deal with 70 Million Psychopaths ?"by Joe Brewer :

"Insight : Banks bristle at breakup call from Sandy Weill", by Paritosh Bansal -"It's possible that the government would impose a Glass-Steagall type structure, especially if there's another blowup," said one Wall Street source. But, he added, "I doubt any bank would voluntarily do it." :

verbum satis sapienti ...

[-] -2 points by shadz66 (19985) 2 years ago

Ireland's Bankers being Arrested and Charged !!! : (Video) -

The former Chief Executive and Chairman of Anglo Irish Bank has appeared in court in Dublin charged in connection with financial irregularities at the bank.

The former Chief Executive and Chairman of Anglo Irish Bank has appeared in court in Dublin charged in connection with financial irregularities at the bank.

Seán FitzPatrick was charged with 16 offences under Section 60 of the Companies Act.

He is accused of permitting Anglo Irish Bank to give financial assistance to Patricia Quinn, her five children and ten senior clients of the bank who became known as the 'Maple 10', to enable the 16 to buy shares in the bank.

He was granted bail to appear in court again on 8 October for service of the book of evidence.

Mr FitzPatrick was arrested by arrangement at 5.37am this morning after getting off a flight from The USA at Dublin Airport.

The 64-year-old was then taken to the Bridewell Garda Station where at 8.08am he was charged with the 16 offences.

Mr FitzPatrick did not speak during a brief hearing at the Dublin District Court this morning.

Detective Sergeant Brian Mahon of the Garda Bureau of Fraud Investigation, on secondment to the Office of the Director of Corporate Enforcement, told the court that when he arrested Mr FitzPatrick he cautioned him and asked him if he understood. Mr FitzPatrick replied "I do".

The detective told the court that Mr FitzPatrick replied "no comment" to each of the 16 charges.

His solicitor Michael Staines told the court that when Mr FitzPatrick became aware the gardaí were looking for him, he contacted his solicitor and organised to meet them this morning.

There was no objection to bail and Mr FitzPatrick was remanded to appear before the court again on the same day as two other former senior Anglo executives, Willie McAteer and Patrick Whelan, who were charged yesterday.

As in their cases, the court also heard the Director of Public Prosecutions has directed that Mr FitzPatrick be tried on indictment, which means his case will also be sent forward to the Circuit Criminal Court.

fiat justitia ruat caelum ...

[-] 2 points by imortalpeace (18) 2 years ago

Woooooooooooohoooooo!!!! That's the best news I've heard in a while. I know there's a list of banksters who have 'resigned' from their positions for 'various reasons', but I wonder if anyone has started a list of arrested banksters. I'll check around.

This is, of course, great news, worthy of celebrating the mass awareness that comes from such legal matters. However, I would be 1000X infinity plus happier if we were to hear that the 'puppetmasters' were getting arrested. I'm talking about the ones that the banksters take their marching orders from. The Henry Kissingers, the Zbigniew Brzezinskis, the Rockefellers of the world.

Seems time and time again, when the globalists make a mess of the world, their puppets take the fall. Maybe this time, given the internet exposure, 'they' will get what's coming to them!

Here's an idea....!

I'm allowing myself a momentary lapse to my minor vibrational level! But, wouldn't it be cool if protesters made life size paper mache bankers and walked through the streets with them hanging by nooses. You think the bankers would get the mass consensus then?!?!

http://www.dailymail.co.uk/news/article-2053904/Occupy-Wall-Street-inspired-artist-hangs-banker-dummy-telephone-wire.html

List of banker resignations;

http://americankabuki.blogspot.ca/p/banker-resignations.html

[-] -1 points by shadz66 (19985) 2 years ago

The Head Bankster Parasites need to take a long walk off a short plank & I intuit that your "minor vibrational level" would be at an unassailable height for The Deeply Selfish, Darksider, "Sith" Entities that pervade The Global Bankster and 'High Finance' - Low Morals, Parasite Class !

In terms of really reasserting 'democracy' & dealing with 'The Bankster Parasites' within their midst, much as this news from Ireland is welcome, Iceland Is The Definitive Paradigm For Us All !!

Thanx for your comment & great links and the '2008 Bilderberg Attendee List' from the conference in that summer makes for very interesting reading given what transpired worldwide in September 08 !!!

verb. sat. sap ...

[-] 2 points by imortalpeace (18) 2 years ago

Now there's a plank walk I'd like to see !!

Here's a list of recent banker arrests. Not enough big fish on there, but hey, its a start... and gaining momentum !!

http://consciouslyconnecting.blog.com/2012/07/25/bankers-and-brokers-and-inside-traders-arrested-oh-my/

[-] -1 points by shadz66 (19985) 2 years ago

You and me both along with probably Billions Of Others !!

Thanx for your very interesting and heart warming link, further to which in the context of my previous comment, I also append :

There is a very clear reason that Iceland and its approach to dealing with its Kleptocratic Banksters is massively under-reported. The Corporate media in US-UK & elsewhere are in league with the Banking Establishment to maintain the lie of 'TINA' (There Is No Alternative!) to Mass 99% Austerity - whereas Clearly There Is An Alternative !!!

e tenebris, lux ...

[-] 1 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

It's nice to see some Banksters get arrested and charged for their malfeasance - BUT - this is a side show - Round up the economicmeltdown Bankster criminals - ALL OF THEM and let us get down to the real nitty gritty of reforming Investment Banking and healing the damage they have caused.

[-] -1 points by shadz66 (19985) 2 years ago

"America's Prosperity Requires a Level Playing Field", by Joseph Stiglitz :

"To fix the economy, we must boost demand. To do that, we have to address inequality."

ad iudicium ...

[-] 2 points by DKAtoday (23972) from Coon Rapids, MN 2 years ago

A great article - it would make for a great post - It Would Make For Another Great Open Letter To Government.

http://articles.latimes.com/2012/jul/22/opinion/la-oe-stiglitz-inequality-20120722

I tweeted this article. People this is another great article to circulate.

[-] 1 points by jrhirsch (4714) from Sun City, CA 2 years ago

Excellent article. Should be a must read here. I would add to Stiglitz's comments that economic equality would also have the effect of increasing political equality as well. Less money for the Koch's equals more power for the people.

[-] -2 points by shadz66 (19985) 2 years ago

"None of our problems will disappear until we correct the creation, supply and circulation of money. Once the money problem is solved, everything else will fall into place." :

radix omnium malorum ...