Originally Posted by Gabo
That's good, they should fail for making such poor decisions. Unfortunately, many failing banks were bought out by the big banks that received bailout money, and now we have a very small number of still irresponsible banks that the government claims are "too big to fail".
I could be wring, but as far as I can see, in the U.S there is only one Big Bank that hasn't repaid its bailout money (Citicorp). As far as I know, Citi never bought out any failing bank either. Let me know if you know otherwise.
If I am correct, "Occupy Wall Street" may as well become "Occupy Citicorp".
Basel III is like putting a bandaid on a gunshot wound. It is a marginal increase in the amount of capital banks are required to hold, but that isn't going to prevent poor lending decisions.
That argument is passť, Gabo. The last time I looked, U.S banks were criticized for NOT lending out money.
Seems like U.S banks are in a "damned if you do, damned if you don't" situation. If they lend, they are accused of making bad lending decisions, and if they don't lend, they are accused of not lending.