( - promoted by Rob "EaBo Clipper" Eno)
The Globe has an article today by David Uberti on a hearing where Elizabeth Warren dressed down bank regulators for being too easy on big banks: http://www.boston.com/news/pol...
"The question I really want to ask is about how tough you are - about how much leverage you really have," Warren said. "Tell me a little bit about the last few times you've taken the biggest financial institutions on Wall Street all the way to trial."
A handful of supporters in the packed hearing room applauded. But none of the witnesses - representing the Securities and Exchange Commission, the Commodity Futures Trading Commission and others - offered a response.
"Anybody?" Warren asked, pursing her lips and raising her eyebrows above her glasses.
I must admit that I am with Elizabeth Warren on the whole too big to fail issue. The big banks are too big to regulate, too big to manage effectively, and too-big-to-fail makes them too big of a liability for taxpayers.
Maybe Elizabeth Warren believes in clamping down on the big banks. But Mr. Obama's Treasury Secretary-designate Jack Lew certain does not share that opinion. As far as he's concerned, too big-to-fail banks are no longer an issue.
Here's what Mr. Lew had to say on the issue on Wednesday (as quoted by the liberal blog FireDogLake): http://news.firedoglake.com/20...
Senator Sherrod Brown: It really is federal policy that subsidizes these megabanks by the implicit Too Big To Fail policy. But we can debate that later.
Jack Lew: That's why Senator I mentioned the responsibility fee, we think that Dodd-Frank dealt with Too Big To Fail and on top of that we think there should be a fee on large money-center banks to approximate the risk they presented in the past.
Blogger DSWright writes: "For those that have been paying attention and are not in the beltway bubble this statement almost qualifies as performance art."
So the man who will be the nation's top financial regulator thinks that too-big-to-fail banks are water under the bridge. Do you think that our crusading Senator Warren might have an opinion on that? And if she does, do you think that she might join Bernie Sanders in voting against Mr. Lew's confirmation?
If you or I were a local print or TV reporter that might be a question that you'd want to put to Ms. Warren. Unfortunately, we have the media that we have. Mmmph.