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>no amount of government control can prevent bank failures So we should just give up and trust the rich/mega rich to please be nice to the rest of us? Because
by Incipient 3y ago
>no amount of government control can prevent bank failures
So we should just give up and trust the rich/mega rich to please be nice to the rest of us?
Because so far, they're doing a stellar job.
- anonuser123456 3y agoRight now, at the behest of wall street banks, the Federal reserve is preventing narrow bank charters. Narrow banks would give you, the depositor, yield and totally eliminate the interest rate risk banks take on (and thus expose depositors to). The regulator is in the tank for the wealthy, and you want to double down on regulation?
- cyanydeez 3y agoThe federal reserve is not a regulator.
- JumpCrisscross 3y ago> federal reserve is not a regulator Particularly post-GFC, they are. There is an entire Supervision & Regulation tab [1]. [1] https://www.federalreserve.gov/supervisionreg.htm https://www.federalreserve.gov/supervisionreg.htm
- JumpCrisscross 3y ago> Right now, at the behest of wall street banks, the Federal reserve is preventing narrow bank charters The proper route for this is legislation, not rule making. Narrow banks aren't asking to just custody deposits. They're asking for a reserve account at the Fed. (Also, Wall Street banks have nothing to do with this. The fear is deposits fleeing e.g. regional banks, not SIFIs.)