The lack of rules that allowed the banks to gamble and go bankrupt but for
the taxpayer (and saver) bailout and created the great recession was a huge failure. Caused mainly by our electing people that don't comprehend the issues they need to make decisions about. And also those same politicians selling out to those giving them lots of cash, investment banks for example.
The banks have been extremely successful at having government tilt the economy to push billions into the banks pockets every year (also deducting billions from savers with artificially low interest rates). The banks have also managed to buy or trick those we elect into doing very little to stop bankers from doing exactly what they did in the first place.
Of course if you are those bankers, why would you change. Get billions in bonus with government granted welfare. Then gamble and take billions in profits for winning gambles. Go get a bailout again when your gambles eventually fail.
They fight against each tiny step to return to a more capitalist economy (which these enormous banks are the antithesis of). They argue with every attempt to have banks be safe and split of speculation to entities that won't get taxpayer bailouts as soon as their gambles fail.
Banks say funding rules will make key equities trades more expensive
The banks are making a last-ditch effort to modify the Net Stable Funding Ratio, seen as the final plank of the "Basel III" banking reforms that seek to prevent a repeat of the 2008 financial crisis.
…
"By unnecessarily increasing the funding cost for banking organisations' equity market intermediation activities, the revised NSFR would also potentially force such activities into the largely unregulated shadow banking system, increasing systemic risk."
They have already won so many efforts to eliminate any meaningful reform. But they keep pushing for even more. Look you immoral cretins, you don't have the right to ruin tens of millions of people's economic life and get even more favors. Granted it is hard for you to believe that when you just pay the politicians a few tens of millions in cash to get billions showered upon you while others pay. But you don't. Now will you manage to buy the right to do so and have your cronies (politicians or their co-opted regulators) sell out country? Probably. We will re-elect those that you bought? Probably.
Just because you can do these things, doesn't mean it isn't immoral. We learned that a century ago, when the robber barons attempted to convince people business didn't related to morality. As if somehow actions people took to ruin an economy so a few cronies can split of the proceeds are any less immoral than some small time crook stealing cash directly from windows and orphans.
Unless you pay those we elect to sellout the country to allow an "unregulated shadow banking system, increasing systemic risk" it won't happen. Having banks have to be banks is what should happen. Those funding speculation have to have adequate resources and be willing to lose what they loan speculators. They obviously should not be allowed to come anywhere close to actions that "increase systemic risk." If that means speculators can't leverage themselves as much and banks can't gamble as much (knowing any big losses will be covered by the government)
too bad.
If the cost of speculation without socialized failure and individualized gains that has been the hallmark of the crony investment banks the last 30-40 years then too bad. Less speculation will have to happen. I don't think speculation is bad. It is part of the market. But speculation doesn't have to be subsidized by society as you bankers seem to think is your right.
Stop trying to increase the amount you can gamble and leverage with threats that not allowing you to gamble the global economy means others will be allowed to do so. The idea is not to continue to allow the cronyism you all use to create massive speculation and leverage that threatens the global economy.
Related:
Continuing to Nurture the Too-Big-To-Fail Eco-system -
Lobbyists Keep Tax Off Billion Dollar Private Equities Deals and On For Our Grandchildren -
Financial Transactions Tax to Pay Off Wall Street Welfare Debt
