Cutting Megabanks Down To Size
Downsizing the megabanks is becoming more than just gossip. The talk and public gripes of cutting megabanks down to size is becoming public and coming into prominence.
Megabanks are like Immovable Mountains
Paul Volcker, the former Federal Reserve Chairman has been delivering broadsides and salvos for the breakup of the megabanks because they have demonstrated the capability to be destructive to the world financial markets. He’s got an ally…Mervin King, the current Bank of England Governor.
But they are up against significant immovable mountains in the shape of their respective governments. Is this pair simply making political points? They must know what they are up against. Governments have been and are very much allied and support these monster sized banks. “Control the money and control the world” is a mantra not easily given up.
Perhaps these gentlemen are appearing to be too old fashioned for the fast boom and then bust cycles of controls and rules that govern banks’ activities to ensure economic stability.
U.K. Finance Minister Alistair Darling said, “You regulate according to risk”. “The greater the risk, the greater the capital requirement. I don’t think an arbitrary split would deal with the problem.” And that seems to be that!
So, it appears that the likes of Bank of America, Citigroup, J.P. Morgan Chase & Company,…still have some breathing room. In any case no government after bailing out the biggest banks and then shoving many untenable assets to them are going to turn around and tear them down to size now are they? They’ve probably been spooked by the failures of some of their largest financial institutions during that worldwide financial meltdown.
Here’s a list of the Big Banks that self destructed.
Here’s a list of the biggest banks in USA.
Here’s a similar report from the Los Angeles Times.
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yes recession now a days has brought down every corporate sector to ground. Even the best of all companies and banks are been affected with this crisis and time a employees are too.
Truly speaking the mega banks are like the mountains because they don’s get affected in any conditions. I hope you will share some thing very interesting in the near upcoming future.
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world financial markets is not stable yet so that’s why this is happening but i think it will take around 6-7 months more to make the conditions ok.
yes recession has brought a dramatic changes in the corporate sector so as it has affected employees increment as well but i think now it is getting little bit up.
I found your blog on google and read a few of your other posts. Keep up the good work. Look forward to reading more from you in the future.
Hey what’s a kid’s game site doing commenting here on a World Banking Info Blog? Well, since my son plays with Super Mario, I’ll let it go…just this once. But mention some banking stuff will ya?
Hi just thought i would tell you something.. This is twice now i’ve landed on your blog in the last 3 weeks looking for totally unrelated things. Spooky or what?