Not surprisingly, reckless bankers who've destroyed their businesses with risky behavior are hesitant to have the public know when they are being swindled for a bailout to cover up their stupid decisions.....“Our member banks are very concerned about real-time disclosure of information that could cause a run on the banks,” said Paul Saltzman, the group’s general counsel, in an interview yesterday. “We’re not going to let the Second Circuit opinion stand without seeking a review.”
A run on the banks who are failing miserably would certainly sort out the responsible from the irresponsible wouldn't it? And isn't that what free-market principles are all about? Why should banks who're failing because of their own poor decision making, be allowed to weasel money from the Federal Reserve without anybody knowing about it? Where's the sunshine and transparency in that?
Business that make poor decisions deserve to fail and be swiftly replaced by efficient, well-managed businesses. That's how our system works. So regarding banks, car companies, insurance companies, mortgage holders, etc. who are poorly managed......
I say, let them fail!
3 comments:
AMEN!!
I thought that's what the FDIC was for, to protect against a run on banks?
My understanding, limited though it is, is that the FDIC is supposed to instill the banking public with confidence that the bank cannot, under any circumstances, lose your money. Understandably, the public needs to trust the banks or they won't deposit their money and the economy will grind to a halt. So you are correct Angie. What the FDIC is NOT in place for, is to underwrite the banks when they make poor decisions, only to return every penny to the depositors when the bank fails.
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