US government led by Geithner gives big banks a free pass

The fix is in. The Financial Stability Oversight Council led by Geithner made sure the big banks will be allowed to do whatever they want, risk and the general good be damned, even as other countries are moving to limit the size of banks. But in the US, the interlocking nexus between the big banks and the higher reaches of government insured the report would do nothing to challenge the power and size of the big banks.

There is a pattern of official behavior here. Central banks in other industrialized countries are at least beginning to confront the ideology that supports the unfettered and undercapitalized growth big banks.

In contrast, the Treasury, the Federal Reserve, and now the FSOC are distorting the evidence to accommodate the views of Jamie Dimon, Bill Daley, and other executives who want to build bigger, increasingly global, highly leveraged, and much more dangerous banks.

This is a crystal clear example of how the interests of a tiny elite are directly contrary to the rest of us. They played a major role in the current implosion of our economy through their greed and criminality, enriching themselves all the while. Now the government has said they can proceed doing precisely as they were – which will led to the precise same results next time.

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