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Bloomberg | Why Should Taxpayers Give Big Banks $83 Billion a Year?





On television, in interviews and in meetings with investors, executives of the biggest U.S. banks –notably JPMorgan Chase & Co. Chief Executive Jamie Dimon — make the case that size is a competitive advantage. It helps them lower costs and vie for customers on an international scale. Limiting it, they warn, would impair profitability and weaken the country’s position in global finance.

So what if we told you that, by our calculations, the largest U.S. banks aren’t really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S. taxpayers?

Granted, it’s a hard concept to swallow. It’s also crucial to understanding why the big banks present such a threat to the global economy.

Let’s start with a bit of background. Banks have a powerful incentive to get big and unwieldy. The larger they are, the more disastrous their failure would be and the more certain they can be of a government bailout in an emergency. The result is an implicit subsidy: The banks that are potentially the most dangerous can borrow at lower rates, because creditors perceive them as too big to fail.

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  • nationscome

    One thing we can all agree on: We must bring down the White House that
    corruption and greed built. And restore it to the White House that truly
    represents the American people—the working class! We need to get this accomplished long before the 2016 election and let everybody know that the American people (not big business) are back in charge of the entire process.

    When Philippine dictator Ferdinand Marcos was kicked out in 1986 they found that his wife Imelda owned 3000 pairs of shoes. He ruled for 20 years!
    While outside his gates the people were starving and living in poverty.
    Our modern-day elected officials are governing us like nothing more than
    dictators, and gangsters in suits and shiny shoes who have all been corrupted
    by big business donors lining their pockets, while leaving the working class in debt and in poverty with a failed economy as they all ride around in limos and fly in jets.

    And, like Ferdinand Marcos they must all be removed from power (Democrats and Republicans alike) before they literally destroy us all and sell us out like slaves. Then replace us with illegal immigrants as the new work force. We the people must take back our country and govern it ourselves. Tell China that America is under new management and the new managers owe them nothing! We must march on Washington DC now, clean house and end the lies and corruption!

  • nationscome

    Wake up America: Do not be fooled! The conservatives and the liberals do not represent working class Americans. They have all been corrupted by big business donors known as special interest groups who want to continue their rule over the American working class. So we need to stop all of the party this and the party that bull dung and face the fact that none of them are working on our behalf. Do you agree?

    We must take back the corrupted White House, do a clean sweep and start over again. Let’s march on Washington DC and clean it out from top to bottom now before it’s too late.

    The 2016 election is right around the corner. Long before then, we the people should be in charge and governing ourselves. We can no longer trust anything the political puppets say. They are all lining their pockets while destroying our economy. Corruption is rampant. Stop talking and let’s all march on Washington DC. Get off your butts! Every state needs to organize and get ready to March! Take back our country now!!

  • nationscome

    I see Sarah Palin as one who has been through the fire and is familiar with and in tune with all the issues facing our nation today. The media has attempted to shut her up because she can expose many of the tricks that big business and their political puppets are playing on the working class. And, she is an outspoken and powerful person who possesses the ability to lead.

    I would like to see Sarah Palin organize and lead a march on Washington DC. It’s imperative that we drop all party affiliations because none of them represent the American working class, and now we are all broke and facing economic extinction. Please ask Sarah to help us. The American working class needs a strong organizer and a strong and determined leader who cannot be misled by greed or corrupted. Call Sarah Palin now!!

  • nationscome

    Sarah, we need your help. All of these discussions are meaningless without outcomes that help working class Americans who have been manipulated by big business, the credit industry and puppet political officials.

    When the Obama administration approved the $85 billion AIG bailout and in 2008 the Senate approved a $700 billion Wall Street bail out, many working class investors, who lost their jobs and life’s savings in the crash, received no bailout money to pay off their debts and mortgages. Instead, the Obama administration allowed banks to cancel our loans and take back our homes. Big business and puppet politicians do not represent working class Americans. Together, they’ve failed us, literally destroyed our economy and enslaved us all — even as they continue to rake in billions of dollars. That’s anti American, and it is slavery.

    Let’s exercise our right to organize and march on Washington DC to face these issues head on and solve them ourselves. We’ll march as one voice and one unstoppable force to clean up and clean out Washington DC and take back our government. All corrupt politicians must go. They do not represent us. We must represent and govern ourselves and take back our government. Let’s march!

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