The Big Banks and How They Got That Way...

[War Horse]

[plcdude]

1. And it all

happens under whose watch?

[gratuitous]

2. From the chart

It appears some of it happened during the Clinton administration, some under the Dim Son, and the last couple under Obama. The larger question is what happened to the regulation of the banking and financial industries since, say, 1980 that led to the collapse of the savings and loans, broke down the wall separating finance from investment, and created a regulation-free environment that assumed the greediest motherfuckers on the planet would operate in a manner that would result in a better financial world for everyone? Whose cock-eyed political philosophy ushered the era in, actively aided and abetted by major media outlets with a vested interest, and a craven "opposition" that was too afraid of being shut out of the casino to protest?

[FarCenter]

4. The Bank Holding Company act of '56 was change in '94

The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA) allowed banks to own branches across state lines and led to the mergers of banks thereafter.

http://en.wikipedia.org/wiki/Bank_Holding_Company_Act

The Gramm–Leach–Bliley Act of 1999 repealed the provisions of the Glass–Steagall Act of 1933 which prevented commercial banks from doing investment banking, insurance, and other financial services. This enabled the "financial supermarkets".

http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act

[FarCenter]

3. Note that the 2008 & 2009 mergers were at the governments request

WaMu, Bear Stearns, CountryWide, Merrill Lynch, and Wachovia were all failing, and the Federal Government urged JPMC, BofA and Wells to save them by taking them over.

This is missing is the 2008 takeover of Golden West Financial (did business as World Savings) by Wachovia. Golden West, headquartered in Oakland, CA, was the second largest mortgage originator behind CountryWide, but they were probably even sleazier.

The disastrous mortgage portfolio acquired with Golden West destabilized Wachovia, requiring their rescue by Wells.

http://en.wikipedia.org/wiki/Golden_West_Financial