The looting of the banks - first the Savings and Loans, then the Commercial Banks
First came the looting of the S & L’s and it looks like the commercial banks currently.
Here we go again. We’re starting on a new version of what was written of in “Inside Job: The Looting of America’s Savings and Loans” by Stehen Pizzo, Mary Fricker and Paul Muolohttp: “http://www.lulu.com/content/477439″ . It was interesting watching the report On FRONTLINE (PBS) on “The Long Demise of Glass-Steagall”
“http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html” Most of the taxpayer money spent on the “emergency economic recovery” legislation will only temporarily mitigate the symptoms. Congress needs to fix the underlying problems by:
1) Legislating a reversal of the SCOTUS decision in “Marquette National Bank v. First Omaha Service Corp. 429 U.S. 299 (1978). That decision enabled the inter-state loan-sharking and override of state usury laws.
2) Pass legislation reinstating the Glass-Steagall Act protections that were removed by the Gramm-Leach-Bliley Act and the Commodities Futures Trading Act. If we don’t fix the laws that allowed Enron, the Long Term Capital Management debacle and now the current potential 60 trillion dollars worth of financial liabilities then what is being done won’t help. It will simply occur all over again.
3) Legislate the disgorgement of ill gotten gains;
4) End the “off-shoring” of looted funds to places like Bermuda and the Cayman Island.
It is imperative to fix the root causes. To stop the hemorrhaging we need to stop the predation and taxation on people making less that $50,000 per year and to end the rewarding of the greedy weasels who perpetrate this kind of bilking of both common equity holders and taxpayers whilst walking away super rich at our expense.
Perhaps if there was a maximum wage pegged at something like 40 times the minimum wage (with no loopholes) it would help. At he moment it looks, sadly, as though we’ll wind up with another version of the Resolution Trust Corporation, which funneled hundreds of billions of taxpayer dollars to some of the very crooks who had gotten us into the Savings and Loan crisis. Have you noticed how they talk about the common stock shareholders getting “cleaned out”? People are paying taxes and simultaneously having their savings and retirement money wiped out. While the lower level bank and brokerage employees are getting laid off left and right, the upper level managements with their interlocking boards of directors have apparently awarded themselves classes of securities that allow them to keep their money and ownership intact. Perhaps Congress should take another look at reinstating some of the anti-trust laws and prohibiting the kind of conflicts of interest that currently exist. The foxes are running the henhouse.
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