Bank of America: Too Crooked to Fail


Bank of America: Too Crooked to Fail by Matt Taibbi is another one for the records.

The bank has defrauded everyone from investors and insurers to homeowners and the unemployed. So why does the government keep bailing it out?

I admit to only having read the first 3 pages of this 5 page article.  How many pages of a career criminal’s rap sheet do you have to read to get the picture?

The first 3 pages were enough to get to the explanation of why bank regulation was introduced and why revoking it has led to exactly the abuses that the regulations were invented to prevent.

For a time, this ridiculous rivalry between two strutting Southern peacocks was restrained by the law – specifically, the McFadden-Pepper Act of 1927 and the Douglas Amendment to the Bank Holding Company Act of 1956. These two federal statutes, which made it illegal for a bank holding company to own and operate banks in more than one state, were effectively designed to prevent exactly the Too Big to Fail problem we now find ourselves faced with. The goal, as Sen. Paul Douglas explained at the time, was “to prevent an undue concentration of banking and financial power, and instead keep the private control of credit diffused as much as possible.”

Since the 1980s we have decided that “undue concentration of banking and financial power” was now due.  It shouldn’t be a surprise that stealing money is easier than earning it, especially if you own the police force.

The propaganda machine rolls on, making people more afraid of the people protesting the robbery than they are afraid of the robbers.

People seem to be saying, “Go ahead and steal my money.  Anything is better than being a socialist.”

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