Congress’ new bank outrage –

10 Jul

Regulators on both sides of the Atlantic are expressing dismay. On Monday, San Francisco Federal Reserve Bank president John Williams acknowledged, reported Reuters, that Barclays’ behavior had eroded confidence in the integrity of the banking system. Which is bad news, he said, because “trust is absolutely critical to conduct any type of business.”

Come on. After what we’ve witnessed and learned in the last five years, is there anyone who still trusts the integrity of the global banking system? The great Greek cynic Diogenes had a significantly better chance of finding an honest man than we do today of locating someone with confidence in the premise that bankers get up in the morning every day determined to do the right thing by their customers and the larger economy. The evidence is overwhelming.

Robert Reich wonders whether “the unfolding Libor scandal will provide enough ammunition and energy to finally get the job [of breaking up the big banks] done.” The New York Times’ Joe Nocera expresses surprise that Americans don’t seem to be giving the debacle as much attention as the British, considering how fundamentally important it is, but hopes that as the scandal continues to unfold, increasing opportunities for outrage will encourage Americans to ” finally summon the will to change banking once and for all.” At Slate, Mathew Yglesias believes that the new revelations “should destroy the credibility of banks once and for all.”

To all three commentators, I can only say, have you looked at what our political system is currently doing with respect to bankers?

Giving them a “Get Out of Jail Free” card is what!

via Congress’ new bank outrage –


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