Goldman Sachs' Exposure To Derivatives Is 362 Times Greater Than Its AssetsSubmitted by Mark Hanson on Sat, 02/16/2013 - 16:17
Curiously, many Republicans who claim to believe in the rule of law and merits of a competitive capitalist economy, offer no objections to the existence of Too Big To Fail (TBTF) and Too Big To Prosecute (TBTP) banks. TBTF and TBTP are antithetical to a capitalist economy based on the rule of law. These entities are very similar to the socialist/fascist businesses that partnered up with Germany's Nazi regime.
Banks like Goldman Sachs, JP Morgan, Citigroup, etc., have the ability to extort concessions from sovereign governments. The TARP bailout is a prime example. Wall Street threatened to create a global depression and destroy the U.S. economy if taxpayers didn't give them everything they wanted. This situation has only gotten worse as TBTF banks continue to get bigger and more highly leveraged. The first link is Rep. Marcy Kaptur describing the extortion that was TARP. The second link lists the derivative exposures of the four largest US banks.
The solution begins with enforcing the rule of law and reinstating Glass Steagall. Reinstating Glass Steagall would effectively break up TBTF and remove their high risk derivatives gambling from the Federal safety net. Former KC Fed President Tom Hoeing is calling for reinstatment of Glass Steagall and former prosecutor William Black has compiled compelling evidence to support criminal prosecution of TBTP banks. The first link is Tom Hoenig, the second is a radio interview with William Black. If milliions of citizens emailed these links to local attorneys, Sheriffs, prosecutors, State Attorneys General, U.S. Attorneys and elected officials, it would make a difference.
For more info check out my post "Fraud and the Federal Debt" at: