Quote:
Originally Posted by Riot
 Nobody wants to "eliminate big banks"
"Prosecute the big banks" ? You bet! And prosecute the small banks that also break the law with illegal foreclosures and illegal lending practices.
That will leave the banks that work within the law to make those loans. |
The problem with a lot of the issues and with more government regulation of the banking sector is it will limit lending, limit the banks ability to take on risk, and limit any ability for any type of creative lending. There are a lot of good loans that banks would like to make but are afraid to because they do not fit in the box or under strict guidelines that are currently in place or could be put in place. This is hampering the economy right now with small businesses and keeping a lot of cash in the big companies because they are afraid that won't get the $ from the bank when they need it.
I agree with prosecution of illegal practices of any business, but the problem I believe is further regulation is not the answer. Check out what is going on in the commonwealth of Mass. right now. There are mortgage companies that believe that it is no longer a viable place to do business. How is that good for the consumer? Prosecute the criminals and help companies suceed that do things the right way, but in case you haven't noticed the Dodd Frank bill has already turned the banking world upside down. Many of the things in the bill actually have or will become negative for the consumer (higher costs). I find it hilarious that Barney Frank is involved with this when he was one of the main people who are responsible for creating many of the programs that caused these issues.
12-07-2011, 09:12 AM
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