Yesterday, Senator Elizabeth Warren (D-MA) aggressively questioned Treasury Secretary Jack Lew about efforts to break up so-called “too big to fail” banks. She noted that under the previous Treasury Secretary, the administration failed to support a Senate amendment to break up these banks.
She then probed Lew about if he would support such efforts.
LEW: I think we’re on a path now which is the right path, which is to implement Dodd-Frank and then to take stock when we’re done implementing Dodd-Frank. […]
WARREN: Ai??The question is though, Secretary Lew, this is about concentration. We all said back in 2009, 2009, the problem that caused the financial crash in part was concentration in the banking industry. And what do we see now? We see more concentration. […] How big do the biggest banks have to get before we consider breaking them up? They’re thirty percent larger now than they were five years ago. Do they have to double in size? Triple in size? Quadruple in size, before we talk about breaking up the biggest financial institutions? […]
LEW: There are many things going on and I’m not trying to avoid addressing the question of “too big to fail,” I’m trying to address quite clearly that that’s an unacceptable policy. But I think we have to take in account all the factors that together add up to systemic risk.
WARREN: Fair enough, Mr. Lew, Secretary Lew. But I really think the evidence suggests that concentration is one of those factors. And that when we see the largest financial institutions getting bigger and bigger, it tells us we are not clearly on the path to resolving “too big to fail.”
Watch it:
Dear Ms. Warren,
The co-mingling of funds is the problem. The money that the banks invest in risky ventures should come from those willing to take the risk not from average depositors who assume that their money is safe.
Don’t waist time prosecuting these people. Fine them. Put the fines with the $85b per month that the Fed is sending to them each month. Redirect this money and give each person in the 99% a one time grant for $100g’s. The banks have stolen $900g’s from each U.S. family since 06. Go online and ask the question,…Real Estate Crisis or Government Sanctioned Racketeering? Sign or Like the petition and forward it to Senator Warren.
Brown-Vitter will not and cannot work, but it is criminogenic.
http://neweconomicperspectives.org/2013/05/brown-vitter-will-not-and-cannot-work-but-it-is-criminogenic.html
Love Elizabeth Warren. She is clear, concise and direct and is speaking for me.