Kasz216 said:
badgenome said:
Soleron said:
Yeah, I keep saying this. Where is the incentive to change how you operate, if the current practices mean you get huge bonuses during the boom and then unconditionally bailed out when it crashes?
|
There is none. Typically, after the bailouts there was no serious restructuring done to make sure that this never, ever happened again. Just a lot of talk that it would never happen again because... of some reason no one bothered to articulate, maybe because it doesn't exist. And since the big banks have an even larger market share than they did before the crash, they're even more too big to fail than before! It is, by turns, hilarious, infuriating, and terrifying.
|
And will be even more too big to fail once Dodd-Frank is finished because they've made their money off said practices, and nobody else will reach them.
First thing that should of been done when TARP was being considered was insisting that banks who agreed to tarp funds be broken up AT&T style.
|
And that gets framed as the government meddling with the choices markets make. And attempts to fight against mergers is against free markets. It would make sense though. However, with the top getting the money, and it seen as a crisis that had to be adverted now, it didn't happen. TARP was passed under the same panic mode that the Patriot Act was passed under.
