Banks own the government: that has already been stipulated by Senator Durbin. As he said, "They own the place," referring to Capitol Hill.
And today we get hearings on a regulatory scheme that doesn't even address the problems that have bankrupted the banking system. The re-enactment of Glass-Steagall to separate deposits and risky trading from insured deposits and prohibiting the proliferation of trillions of dollars of derivatives is a dead letter in the hearings and on the Hill.
In fact, the privately owned and operated Federal Reserve did exactly the opposite of what Glass-Steagall called for. Banks bought even more brokerages. Investment banks became insured FDIC banks. Banks bought mortgage companies.
Trillions of tax payer dollars paid, yet the "new" regulation and proposed regulatory body will do nothing for the deregulation that allowed "too big to fail" banks to buy investment banks and brokerages and trade in trillions of opaque instruments that could blow the whole financial system sky-high and take the country down in the process.
Aug 5 2009 - 12:53pm