Dallas Fed President: “Break Up Big Banks”
The President of the Dallas Federal Reserve recently argued against the big banks in the US, calling them “crony capitalists” and a threat to not only US “financial stability but to fair and open competition.” Richard Fisher spoke at an annual Conservative Political Action Conference (CPAC), telling an audience of Republicans that “the existence of banks that are seen as likely to receive government bailouts if they fail gives them an unfair advantage, hurting economic competitiveness,” reports Reuters.
Fisher has been vocal in his stance against banks that are “too big to fail” and the Fed’s “unconventional” monetary stimulus policies. He’s asking for a restrictions against deposit insurance, offering only to deposits of commercial banks and not the investment arms of bank holding companies.
“At the Dallas Fed, we believe that whatever the precise subsidy number is, it exists, it is significant, and it allows the biggest banking organizations, along with their many nonbank subsidiaries – investment firms, securities lenders, finance companies – to grow larger and riskier,” Fisher said.
The first audit of Federal Reserve practices was released just two years ago, and uncovered “eye-popping details” about how foreign banks were bailed out after the economic crisis in 2008. Vermont Congressman Bernie Saunders ordered the top-to-bottom audit, which revealed the US provided almost $16 trillion to the banks and businesses.
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“This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else,” said Saunders.
“No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president,” he stated in a press release on his site. “The Federal Reserve must be reformed to serve the needs of working families, not just CEOs on Wall Street.”
Saunders report was met with little support or publicity from mainstream media.
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