from Fox Business:
President Barack Obama announced moves to limit the size and risk-taking ability of the largest banks because of the risk they pose to US taxpayers. Adviser and former Federal Chairman Paul Volcker, no longer marginalized in the administration, backs the changes.
Banks will no longer be allowed to own or operate hedge funds or private equity funds, among other things.
Missing here: Giving Fannie Mae and Freddie Mac an unlimited, uncapped credit line into the US Treasury on Christmas eve.
This, at a time when both disclosed in securities filings that the housing policies of the Administration and Congress will lead to additional taxpayer losses. Both have combined balance sheets equal to about 40% of US GDP, and combined both received the biggest taxpayer bailouts.
Which company really needs to be shrunk to protect taxpayers?
You should worry that the bank fixes don’t target the real causes of the crisis, as the administration attempts to re-affix a regulatory antenna to the roof of the government that was knocked off long ago.
