Archive for the ‘Jerry’s Blog’ Category
This is a very clear and exciting presentation by Ann Emmett and Rocco Galatti presented recently in Montreal. Be sure to check it out.
Lawyer sues Bank of Canada…you won’t believe what happens next….
“On behalf of ALL Canadians ” the COMER lawsuit is appealed.
Thursday March 26, 2015. This article has just appeared in The Star.
Renowned Toronto lawyer Rocco Galati is pursuing a court case intended to do nothing less than force the Bank of Canada to reorient its activities on behalf of Canadians….
A short video that showed that the COMER lawsuit would go ahead…
First Announcement—COMER Lawsuit
Media announcement of the lawsuit and none of the press showed up!
The “Too Big To Fail” Have Stopped Being Banks. They have become Huge Criminal Enterprises Involved in Market ManipulationFriday, February 27th, 2015
Apart from the above-described manipulation, virtually all of the big banks’ profits come from taxpayer bailouts and subsidies (see this, this and this). Why don’t they need deposits? Because the taxpayers are showering them with money.
At the same time, the big banks have sat on the money the government threw at them – with the encouragement of the Fed – instead of loaning it out to Main Street to kickstart the economy. As we noted in 2012, small banks are much more interested in making loans to the little guy than the TBTFs (Too Big To Fail):
USA Today points out:
Banks that received federal assistance during the financial crisis reduced lending more aggressively and gave bigger pay raises to employees than institutions that didn’t get aid, a USA TODAY/American University review found.
Dennis Santiago – CEO and Managing Director of Institutional Risk Analytics … notes:
The vast majority of this contraction of credit availability to American industry has been by the larger banks ….
Fortune reports that smaller banks are stepping in to fill the lending void left by the giant banks’ current hesitancy to make loans. Indeed, the article points out that the only reason that smaller banks haven’t been able to expand and thrive is that the too-big-to-fails have decreased competition ….
Business Week notes:
As big banks struggle, community banks are stepping in to offer loans and lines of credit to small business owners….
Fed Governor Daniel K. Tarullo said:
The importance of traditional financial intermediation services, and hence of the smaller banks that typically specialize in providing those services, tends to increase during times of financial stress. Indeed, the crisis has highlighted the important continuing role of community banks….
[Federal Reserve Bank of Kansas President] Thomas M. Hoenig pointed out in a speech at a U.S. Chamber of Commerce summit in Washington:
During the recent financial crisis, losses quickly depleted the capital of these large, over-leveraged companies. As expected, these firms were rescued using government funds from the Troubled Asset Relief Program (TARP). The result was an immediate reduction in lending to Main Street, as the financial institutions tried to rebuild their capital. Although these institutions have raised substantial amounts of new capital, much of it has been used to repay the TARP funds instead of supporting new lending.
On the other hand, Hoenig pointed out:
In 2009, 45 percent of banks with assets under $1 billion increased their business lending.
45% is about 45% more than the amount of increased lending by the too big to fails.
Indeed, some very smart people say that the big banks aren’t really focusing as much on the lending business as smaller banks.
Specifically since Glass-Steagall was repealed in 1999, the giant banks have made much of their money in trading assets, securities, derivatives and other speculative bets, the banks’ own paper and securities, and in other money-making activities which have nothing to do with traditional depository functions.
Indeed, the “Too Big To Fail” are doing everything they can to fight the availability of low-cost loans for Main Street and the little guy.
The bottom line is that we don’t need the big banks. Indeed, top economists, financial experts and bankers say that the big banks are too large … and their very size is threatening the economy. They say we need to break up the big banks to stabilize the economy.
This is especially true since the monsters are growing larger and larger … and have mutated so much that they’re no longer even behaving like real banks.
The Public Banking Group is for brainstorming and discussing ideas for creating and implementing public banks, specifically state banks, county banks, city banks, and publicly-supported non-profit banks.