10 Years Since Lehman Brothers: Back To Square One
Submitted by gjohnsit on Sun, 09/16/2018 - 1:33pmFormer prime minister Gordon Brown issued a warning recently.
Former prime minister Gordon Brown issued a warning recently.
We aren't even done with the primaries yet, but Wall Street has begun betting on the results.
The Big Bank Stress Tests came about in the Dodd-Frank bill in 2009. The idea was that systemically important banks had to have reserves enough to survive a recession.
Two weeks ago all 35 big banks passed the stress tests.
Or did they?
Billionaires Charles and David Koch own the GOP. But this election year they took time out of their busy schedule to publicly endorse Democratic Sen. Heidi Heitkamp.
$243 Billion is the total amount of fines that major banks have paid for criminal behaviour since the start of the 2008 crisis. That's more than the GDP of Portugal.
It doesn't take a genius to predict this outcome.
Almost no bankers got thrown in jail for systemic fraud, and few bankers lost their jobs for making stupid loans.
So with no consequences, why not do it all again but repackaged, amirite?
10 years ago next week marks the anniversary of the Bear Stearns bankruptcy and Fed bailout.
How fitting is it that next week the Senate is expected to vote to roll back many of the regulations put in place to prevent a repeat of the 2008 crash.
It's not as big as Monday's crash, but it more than wipes out Tuesday's dead-cat bounce.
The losses are starting to add up.
Short answer: All Of Them.
Long answer: Some are more responsible than others.
Oh, the joys of bipartisanship!