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Congress Has Lost Control of the Big Banks

On January 16 of this year, Richard Fisher, President of the Federal Reserve Bank of Dallas, delivered a speech on the continuing threat to the U.S. economy posed by the too-big-to-fail banks. Fisher said: “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.”

As part of his talk, Fisher presented a chart showing the Frankenbank nature of the five largest banks in the U.S. – JPMorgan, Bank of America, Goldman Sachs, Citigroup, and Morgan Stanley. Cumulatively, these five banks are the parent to 19,654 subsidiaries or affiliates while their nondeposit liabilities total over $4.1 trillion – a figure equal to 26.3 percent of the Gross Domestic Product (GDP) of the country.

Today, it’s not just that Wall Street and its army of lobbyists and trade associations are dictating policy and going to court to hold sway over Washington, it’s also the fact that the Senate has confirmed deeply conflicted regulators who earned big bucks working for Wall Street and are likely to return to the same or similar jobs. Is it any wonder the public is seeing no meaningful reforms while watching the corruption grow exponentially.


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