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 ManipulationFebruary 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.
On Saturday, January 24, COMER, the Public Bank Institute, Canada Chapter, and members of the Council of Canadians, will present a seminar on:
CROOKS, CHEATS AND CONS IN PRIVATE BANKING:
All you wanted to know about MONEY but were afraid to ask
The meeting will be held at the Council Chambers, Toronto City Hall, 100 Queen Street West.
There is no charge to attend.
Extending my mind further
Purdue University required every “foreign” student to take a comprehensive exam in the use of the English language. When my department head called me in to congratulate me –the highest percentile ever reached — I didn’t explain my preschool interests, or mention the large book of crossword puzzles a Cornell professor had sent me following his summer fishing visit.
Nor did I mention that I would be staying another full year after the qualifying exams to ensure that every word in my thesis would say exactly what I wanted said. By concentrating, I was investing mostly my mind resource to satisfy my own requirements.
With less attention to financial markets I was getting anxious to extend my “number thinking” and economic understanding — by sharing with down-on-the-farm families. Where would I find such an opportunity? Three years earlier I had been offered just such a position out in the Saskatchewan prairie , and at the top of the salary range. But I declined after realizing my acceptance at Purdue would better prepare me for the career I was sure I wanted. Now that the deputy minister of Alberta Agriculture knew that Saskatchewan was moving ahead in such a direction, he flew down to Indiana to offer me the chance to lead an economics extension program. I had to refuse, as I knew there was very little research data available from the farm level. A month later he informed me that a well-known professor at Iowa State was coming to head up research in Farm Management at the University in Edmonton. Would I reconsider ?
Yes, I would !
So the family (now four of us) bundled up in the new VW beetle ($1,790 cash) and made our way to Edmonton — a 2000 mile journey. I found the Department of Agriculture well out in front of what had been happening at the university — in sharp contrast to Indiana where anyone from Purdue received a warm welcome from farmers. After Gordon Ball arrived we worked together to develop an extension program in economics applied to agriculture. However, when it was apparent that the university administration was not being supportive, Gordon resigned and returned to Iowa, leaving us at the Department of Agriculture “empty-handed”. I decided to leave too.
The University of Manitoba was interested in interviewing me, and since both Iowa and Purdue profs were already present, we were easily compatible. Best of all was the ready opportunity to develop a farm business association in a western area of the province, learning from a colleague who had started one to the South of Winnipeg.
April 1st, 1961 Exactly 3 years after my first successful investment. This marked the beginning of my most totally useful career. It put me in the RIGHT place –at the RIGHT time — for the RIGHT reasons. The kitchen table trade-offs (“teacher-learner, learner-teacher”) would show me how prairie farms operate and I would share my financial management understanding. I came up with a name for this :
“Ackerman’s 5 A’s of Decisions”
This one-handed process reaffirmed farm level decisions to “stay-the-course” ensuring viable businesses, and providing for continuity with the oncoming generation. For me —my most productive half-decade. The questions I always asked apply to any business of any kind anywhere in the world :
* Is this farm big enough ?
* Is it productive enough ?
* Are the costs controlled ?
By analyzing the data from dozens of farms in the same area of the province I could develop appropriate standards and benchmarks. In buying a farm for myself and renting it to neighbours I was seen to be sharing some of the risks and uncertainties. No longer was I viewed as a representative of the “Y’Ought Club” as the Department of Agriculture was called.
The next decade brought a special one-time opportunity for these farmers fully knowledgeable about their business. Increased prices in the grains and oilseeds they were producing, without a corresponding increase in costs ! They prospered accordingly. In the same decade (1970s) the Canadian banks were de-regulated. They took over the trust companies, funded government spending, and speculated in foreign bonds. This resulted in runaway interest rates, inflation and vast increases in debt at every level of government. Many farmers responded by bidding up the price of land. Large land purchases by European farmers worried about their communist neighbours added to the unwarranted inflation. In my classes I gave assignments asking for calculations justifying 15 to 20 % interest rates. Only those students responding with “nowhere, no way” got my approval. It was time to sell and retire from farming.
That’s what I did. I went part-time at the university and commuted seasonally to Nova Scotia to start up tourist businesses, retiring fully from academia four years later.