Big banks are government-backed: Fed's Hoenig

Big banks are government-backed: Fed's Hoenig

ca.news.yahoo.com

CHARLOTTE, North Carolina (Reuters) - Big banks like Bank of America Corp and Citigroup Inc should be reclassified as government-sponsored entities and have their activities restricted, a senior Fed official said on Tuesday.

The 2008 bank bailouts at the height of the financial crisis and other implicit guarantees effectively make the largest U.S. banks government-guaranteed enterprises, like mortgage finance companies Fannie Mae and Freddie Mac, said Kansas City Fed President Thomas Hoenig.

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I'm very curious what this is about - I'm the first to admit the ridiculous monetary system we now have just confuses me.

I didn't major in economics, and other than the big picture, most of this stuff is pretty confusing.

So I ask ATS - why is the FED trying to get BoA et al to join the ranks of Freddie and Fannie?

Is this a power play by the FED because they actually gave out the bail out cash and unless the government seizes those banks they worry about an Iceland-ish situation?

**** PLEASE NO POLITICAL RANTINGS ****
I'm just asking for a little insight into this so that I may understand it. I'm not looking for your opinion as to the Fed or our government.

ca.news.yahoo.com
(visit the link for the full news article)

Wow talk about reforming ‘too big to fail’ now they will never fail. If they are government sponsored entities that is a serious infringement upon the practices of the free-market, basically these companies will be treated as government banks except will remain private. The whole “for regulation” bit is just to appease the people and lull them back to sleep. They will be about as regulated as Fannie and Freddie were.

So let’s see, government backing private multinational industries to protect them against competition, give them special exemptions in the law, and then shelter them permanently from failure. That is only going to further guarantee that freedom will be crushed at the hands of the government.

This has to be the most insidious and outright corrupt move I have ever seen them undertake. We were complaining when they got bailed out, this is way beyond a bailout. This is the government guaranteeing private entities that they shall be sheltered using public funds from competition and collapse.

Never before has corporatism been as outright in our face as is now. This is plutarchic capitalism within a state sponsored corporatist economic structure. Anyone who believes in freedom, liberty, the free-market, or even genuine socialism for God’s sake should be furious with this!

Giving certain large banks a guaranteed government protection is the government backing large multinational banks against all the others, we are never supposed to have government taking sides against any other private business, NEVER. That is the antithesis of everything American. It is Woodrow Wilson and Franklin Roosevelt on steroids!

Perhaps the FED is worried those banks may off-shore there cash
prior to a staged collapse (already tested the computer glitch that dropped selected share prices to zero).

Then with the US Govt broke as well,
throwing their cash away at Intelligence and defense contractors in an organised rorting of the system.
No public money left to tax citizens ...

The FED doesn't want to lose.

reply to post by gncnew


Read my location.

The banks and large corporations own America and currently make the laws not the people.

I notice your mood is stressed............me too!

I found this You Tube Channel and hope you find it as interesting as I did.

www.youtube.com...

This guy has a couple short videos that really are positive.

In this time and age people should no be surprised of the scam been run on the tax payers by our corporate run government.

America is nothing but a two party dictatorship run under private corporate entities behind our govenrment, in other words democracy is none existence and the Republic is long death, the filthy weathiest in the nation are the ones to have their wealth garantee and backup when their monetary scams against the population fails and that goes for most countries link to the US economy.