Sherrod Brown Teams Up With David Vitter To Break Up Big Banks
Multi-trillion dollar financial institutions continue to get richer, exerting more and more control over both America's economy and its political system. The top 20 largest banks' assets are nearly equal to the nation's gross domestic product.Now, Sen. Sherrod Brown (D-Ohio), along with unlikely ally Sen. David Vitter (R-La.), is launching an effort to break up the taxpayer-funded party on Wall Street.
"The best example is that 18 years ago, the largest six banks' combined assets were 16 percent of GDP. Today they're 64-65 percent of GDP," Brown said. "So the large banks are getting bigger and bigger, partly because of the financial crisis, partly because of the advantages they have."
"The system is such that the big banks have far too many advantages, bestowed in part by the marketplace, because investors understand and the market understands that government might in fact bail them out, so there is lower risk for investors, and that means that they can borrow money at a lower cost than anybody else can," Brown said, explaining why small- and mid-sized banks are at a disadvantage.
Brown noted that conservatives and progressives use slightly different arguments and talking points to get to the same conclusion, with conservatives condemning "crony capitalism" and progressives worrying about the corrupting influence of major financial institutions.
Read more @: http://www.huffingtonpost.com/2013/02/28/sherrod-brown-banks-david-vitter_n_2782665.html
I think everyone could get behind this idea. Both parties reach the same conclusion that crony capitalism is not right and the mega banks have become to powerful. The only people that wont benefit from this idea are a few rich wall street executives.
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Re: Sherrod Brown Teams Up With David Vitter To Break Up Big Banks
I'm sorry. The text above says "taxpayer funded party." What taxpayer funding are they talking about? If it means the bailouts then that was the government's doing. The government caused that taxpayer funding, not the banks. In fact, bailout money was rammed down the throats of some banks that didn't want it. Obviously, the bailouts should never have happened. Otherwise, what is the problem? People are angry that banks make a profit?
When I was young interstate banking was illegal. The government changed that, not the banks. The banks simply took advantage of it. Seems to me that the author of the article should be blaming government, not banks.
Don't misunderstand me. I'm not a fan of banks. But everything this post talks about is government activity.