May 18 2010
cross-posted from Sum of Change
Yesterday, despite the persistant rain, thousands of people showed up on K Street in Washington, DC to protest the actions and lobbying efforts of big banks and to demand economic justice. The Washington Post is comparing the anger to what we have seen at Teaparty protests.
–Mark Freeman, foreclosure victim and SEIU member
Apr 18 2010
The USA:
Jobs: Small Business Loans Are The Mountain Blocking Economic Recovery
Phillip Williams — Apr 17, 2010
Why Small Business Loans Are Important
The economy has lost 8.4 million jobs since the start of the recession. Small businesses employ the majority of the American workforce, although the largest single employer is still the federal government.
When the economy starts to recover small businesses rely on loans to bring up their inventory levels. Large banks and smaller institutions have been reluctant to introduce new loans after the failure of a large number banking institutions.
Small banks do not have the resources to start lending again, and the number of new loans have gone down since the start of the recession.
Banks that received funds from the Troubled Asset Relief program. The larger banks that were branded as too big to fail have also reduced the number of new loans they make to small businesses. They have reinvested the funds in lower-return, lower-risk treasury bonds instead.
Mar 26 2010
Thankfully, Financial Reform appears to be back in play again. This little News Item today, indicates a “strategic pivot” is about to occur:
Obama presses for financial reform
Mar 25, 2010 – Reuters
Financial regulation reform vaulted to the top of President Barack Obama’s post-healthcare agenda on Wednesday, with both Democrats and Republicans upbeat about passing legislation soon.
After a meeting with Obama, Senate Banking Committee Chairman Christopher Dodd said the president wants results soon from Congress on proposals to tighten U.S. government oversight of banks and the capital market.
[…]
“We’re going to get a bill done,” Dodd told reporters outside the White House. He was joined by fellow Democrat Barney Frank, chairman of the House Financial Services Committee who said the issue will be Congress’ No. 1 concern after a two-week Easter break.
[…]
Pivoting from their victory this week on healthcare reform, Democrats are pushing hard for a crackdown on risky bank practices, over-the-counter derivatives, credit rating agencies and other segments of the financial sector, with the aim of preventing another crisis.
[…]
Mar 05 2010
Dallas Fed chief calls for breakup of ‘too big to fail’ banks in New York speech
BRENDAN CASE, The Dallas Morning News – March 4, 2010
Federal Reserve Bank of Dallas President Richard Fisher traveled to New York to trumpet a message he’s told Texas audiences before: Banks that are too big to fail are too big to exist in the first place.
Speaking Wednesday at the Council on Foreign Relations, Fisher said big, systemically important banks should be dismantled before regulators have to deal with another crisis like the one that nearly brought down Wall Street and the rest of the U.S. financial system in late 2008.
“The dangers posed by too-big-to-fail banks are too great,” he said.
Fed Chairman Ben Bernanke and others have said Congress should pass a law giving regulators “resolution authority” to close down failing financial companies.
http://www.dallasnews.com/shar…
That is Good News, sort of.