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Dallas Fed Plan: Ending 'Too Big to Fail': A Proposal for Reform Before It's Too Late

Speech by Richard W. Fisher

Ending 'Too Big to Fail': A Proposal for Reform Before It's Too Late (With Reference to Patrick Henry, Complexity and Reality)
Remarks before the Committee for the Republic
Washington, D.C. · January 16, 2013

It is an honor to be introduced by my college classmate, John Henry. John is a descendant of the iconic patriot, Patrick Henry. Most of John’s ancestors were prominent colonial Virginians and many were anti-crown. Patrick, however, was the most outspoken. Ask John why this was so, and he will answer: “Patrick was poor.”

However poor he may have been, Patrick Henry was a rich orator. In one of his greatest speeches, he said: “Different men often see the same subject in different lights; and therefore, I hope that it will not be thought disrespectful to those gentlemen if, entertaining as I do, opinions of a character very opposite to theirs, I shall speak forth my sentiments freely, and without reserve. This is no time for ceremony … [it] is one of awful moment to this country.”

Patrick Henry was addressing the repression of the American colonies by the British crown. Tonight, I wish to speak to a different kind of repression—the injustice of being held hostage to large financial institutions considered “too big to fail,” or TBTF for short.

I submit that these institutions, as a result of their privileged status, exact an unfair tax upon the American people. Moreover, they interfere with the transmission of monetary policy and inhibit the advancement of our nation’s economic prosperity.

... more at

http://dallasfed.org/news/speeches/fisher/2013/fs130116.cfm

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He doesn't get exposure in Dallas, purposefully....

The honeypot of Dallas (Preston Hollow) make their fortunes off of public-private projects in Dallas and drumroll...fractional reserve banking. They always get one of their own on City Council who knows everyone...all the way up the Texas chain and in the media (basically Dallas Morning News)...and most of them either own banks or are married to someone who owns banks.

Their neighborhood claims to be "fiscal watchdogs" but they aren't--they are the first ones grabbing for the stimulus dollars to sit on or pad their pet projects---alternatively, investing $20mill as an "incentive" for a company to move to Dallas.

I don't know if they're dumb or in denial, but you'd think bank owners would understand the mathematical inevitability of the bust cycle...

"Entities other than commercial banks have inappropriately benefited from an implicit safety net. Our proposal promotes competition in light of market and regulatory discipline, replacing the status quo of subsidized and perverse incentives to take excessive risk."

Yep, and those inappropriate entities are still making them a whole lotta money.

I think Fisher works at SMU or has some connection because my husband used to talk about him a lot. I think he taught the alternative investments class...correct me if I'm wrong. :)

Alternatively...

Ending the Fed becomes far less important if we abolish fractional reserve banking, legalize competing currencies and force all American governments to accept the competing currencies as legal tender. Under such a scenario, the Fed would be marginalized until it went bankrupt and imploded because no one accepted their currency any more.

Precisely.

Ron Paul mentioned this at a recent Mises Circle in Houston: he's just waiting for them to self destruct (referring to fractional reserve banking.)

(He smirked a little bit, which was bad to the bone.)

Respectfully applaud the

Respectfully applaud the general idea coming from a Fed bank, but disagree with deconstruction or reconstruction. Pull the regulations and then let the chips fall where they may. You can't undo the past. Let it go and see how they play from here, without the advantage.

23

Stunning fact (see the pie

Stunning fact (see the pie chart) is that 12 TBTF banks (out of 5,600 US banks) control 70% of industry assets!

Never trouble trouble til trouble troubles you. Fortune Cookie

Also...

We need to end "Too big to jail"!!!

Remember HSBC?
http://www.economist.com/news/finance-and-economics/21568403...

When Fascism goes to sleep, it checks under the bed for Ron Paul!

Ron Paul ought to respond to this.

Ah rally don't want to move, but y'all Texans shore know how to tempt a lady...

This is truly astonishing. All very polite, but there is a subtle threat of revolt between the lines, at least the way I read it.

This is the article that got my posting privileges revoked:
http://bklim.newsvine.com/_news/2013/05/12/18212165-dr-stan-...

Hmm fairly long article. But

Hmm fairly long article. But good to see dissent in the Fed system. Who was that one Fed board member who was the lone no vote a year ago?

Southern Agrarian

Probably Fisher, he's usually

Probably Fisher, he's usually the dissenter when there is one.

It's encouraging that here he blasts taxpayer protected shadow banking due to TBTF on moral grounds. If he were logically consistent he'd be unsupportive of FDIC even for commercial banking, but at least this is a step in the right direction.

Never trouble trouble til trouble troubles you. Fortune Cookie

Ending the Fed entirely is

Ending the Fed entirely is the right solution, but when this decent common sense Fisher proposal is not adopted we at least have irrefutable proof that the federal government is under the complete control of a financial oligarchy.

Never trouble trouble til trouble troubles you. Fortune Cookie