Can US banks be trusted to self-regulate?

[tabatha]

Several leading politicians in the US Congress are demanding that federal regulators strengthen proposed banking rules and scrutinise trading more closely. The call follows a $2bn trading loss disclosed last week by JPMorgan Chase, the country's biggest bank.

Heads have already started rolling, with the resignation on Monday of Ina Drew, the bank's chief investment officer, who some regard as the most powerful woman on Wall Street.

That bad trade strikes at the heart of the debate about Wall Street regulation. The loss will not cause the bank to collapse, nor will it need a government bailout. But the news has intensified the belief among some that banks should not, or perhaps cannot, regulate themselves.

Since the most recent economic meltdown, which many say was caused by financial institutions taking excessively risky bets, the US government has tried to reform banking regulation in a piece of legislation known as The Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in 2010.

http://www.aljazeera.com/programmes/insidestoryamericas/2012/05/201251593733577549.html

"We have crony capitalism. We have a system where Wall Street got to write the laws. If the mafia got to write the laws loan-sharking would be legal. (Wall Street) got to write the laws reversing the rules that came out of the last depression … demanding transparency, accountability, the oversight."

- Robert Scheer, the editor-in-chief of news website Truthdig.com

[OnyxCollie]

1. No.

But I expect much persuasion, from both parties, to the contrary.

[JFN1]

2. Same question:

Can a heroin addict be trusted to safeguard a pound of heroin?

I. Think. Not.

[deadinsider]

3. Seriously, why are we still asking this question?

All we see here is the most obvious example of the Crises of Capitalism.

The banks wanted to deleverage from 1-10 to 1-30; they lobbied to change whom they could borrow to (see predatory lending, which leads to higher interest rates for them); they fought for 21st century financial instruments for the past 30 years; they broke down the barriers between commercial and investment banks.

Smaller banks, that can only leverage 1-5, and at most 1-10, certainly can be trusted more than these gluttons.

Move your savings to a credit union. Union is in the name for a reason.

[intaglio]

4. Go on, what's the punchline?

But if your thread title is a serious question ...

[tabatha]

6. It is a posting of an article found on Al Jazeera

Last edited Sun May 20, 2012, 05:58 PM - Edit history (1)

read by people from all over the world, who may not know much about US banking, and need to be informed.

There is a dearth of educated, informed people in this world, and any attempts to do so should not be ridiculed.

I posted it because it is from outside of the US, and is sorely lacking from Faux News.

[Egalitarian Thug]

5. Can I trust my little terrier to guard my steak while I run to the store for some onions? n/t

[meow2u3]

7. Can I trust my cat to guard the catnip plants?

Short answer: no

[maria2]

8. ....

mhh i don't know....

[cherokeeprogressive]

9. Trust a heroin junkie to self-medicate? n/t

[rufus dog]

10. Can a Priest be trusted to self regulate with a young parishioner in the woods?

[socialist_n_TN]

11. Can a bear be trusted to........

shit in a toilet? Short answer? NO!

[The Magistrate]

12. The Experiment Has Been Run, Ma'am, And The Results Are In: Not Just No But Fuck No

[txoctodem]

13. Do those who believe banks can be trusted

to regulate themselves also leave a tri tip-roast on the counter unguarded with their labrador retriever alone in the room? I have learned to my regret that this is unfounded trust.

[marmar]

14. No. Nein. Nyet. Non.

[LiberalAndProud]

15. Asked and answered, but I think nobody was paying attention.

Greenspan Concedes Error on Regulation
http://www.nytimes.com/2008/10/24/business/economy/24panel.html?_r=1

This should have been a poll.

[hobbit709]

16. My response is this

[meow2u3]

17. Can a cat be trusted to guard a mouse?

Can a fox be trusted to leave the chickens alone?

The short answer: no. The long answer: hell, no!