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Warren: It’s time to break up too-big-to-fail banks

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Mortgage Professional America | 16 Apr 2015, 03:08 AM Agree 1
In a speech Wednesday, the outspoken senator called on lawmakers to cap the size of the largest financial institutions and limit emergency lending by the Fed to troubled institutions.
  • Dominick Samnarone | | 16 Apr 2015, 10:00 AM Agree 1
    I can't stand the "too big to fail" banking cartel. I dislike big controlling government talking about "breaking up big banking corporations"

    I wish Americans were smart enough to know NOT to do business with bad businesses. These banks have all paid fines for breaking the law without blinking an eye. Chase actually had a smirk on there face. Unlike credit unions banks don't have to answer to their customers so there's no transparency.

    The biggest enemy of the banks are smart people. Smart people join credit unions and become members, not customers. There is full disclosure and transparency to its members in a credit union.
  • Carl hoelscher | | 16 Apr 2015, 10:03 AM Agree 1
    It is about time. Are the rest of our elected officials cowards? The way they let the financial system control the world is criminal.
  • Mortgage Guy | | 16 Apr 2015, 03:17 PM Agree 1
    Warren is absolutely correct. The big banks need to be broken up. We just need to make sure this happens in an organized process to minimize disruption in financial matters. I am sure money from Citizens United will fight this like nobody's business. I hear complaints from friends at Regional Banks about things they have to do to comply with Dodd Frank and they are a minor problem, but the economy is a safer place due to Dodd Frank.
    I thought my business would suffer from Dodd Frank, but once it got the crooks out of the business all was well.

    This is just too much risk in one place for the US Economy!
  • gh | | 16 Apr 2015, 06:19 PM Agree 0
    Amazing how it was OK to make an uneven playing field and destroy hard working legitimate businesses such as brokers. Now that it appears Warren could run for election it is quite interesting that she would actually talk about the monster she helped create with the Dodd Frank and QM. Why hasn't someone done something to have all lenders and brokers on the same playing field? The banks have borrowed money for nothing, the consumers now pay double for appraisals through APPRAISAL MANAGEMENT COMPANIES, and the laws that Barney Frank pushed through which in fact I believe Frank has seriously benefited monetarily through (as he owns an appraisal management company), have in no way benefited the public. A bogus watchdog that is not even accountable to Congress has been created known as the CFPB. This was done to hide the actual costs to the consumer as they operate at the same level as the CIA stating they are not accountable to anyone. Can't blame the brokers for this one!!!!!!!!!!!!!!
    Banks have literally operated for nothing and smaller banks have been forced to comply or close down. Ideas came from Congress. Now monsters have been created. Should be interesting.
  • Steve Harkness | | 18 Apr 2015, 10:59 AM Agree 0
    It sounds like a wonderful idea, the same idea that was debated in 2008 when the very same banks almost took the American financial system down the river. What came of these Congressional hearings? The big banks instead of being broken up were bailed out at tax payer expense. A rogue agency called the Consumer Finance Protection Bureau (they always give them good sounding the Federal fool people into thinking they are working for the consumer) was formed making the big banks EVEN BIGGER. The CFPB is used to further the agenda's of the megabanks because it's members (CFPB) are all ex-megabank or Federal Reserve employees. These megabanks have been siphoning the wealth out of the middle class for the past forty years. If Congress does not break them up soon they will succeed in causing the rest of the world to loose faith in the US Dollar as the worlds reserve currency and then we are really in trouble. At present, we have the luxury of being able to turn on the printing press to make the interest payment on our eighteen trillion dollar debt However, the Chinese are doing everything they can to substitute the U.S Dollar with their Chinese Yuan. The dollar is backed by nothing but the word of the US. The Yuan is backed by GOLD. China does not let ANY GOLD leave their country.
    The Mega-banks don't care about the United States. All they care about is extracting wealth. If we let them they will suck us dry and toss our carcass to the side and move on to the next opportunity. Oh yes, one more thing. One of the few good things that Dodd's-Franks did was take the US Taxpayer of the hook if the US megabanks ever again got themselves in trouble with their excessive greed and risky investment plays. However, last November-December as a lazy Congress had headed home for the Holiday season the lobbyist for the megabanks were successful in getting an earmark placed in the spending bill to keep the US government operating. The President hurriedly signed it and headed to Hawaii for Christmas. What the earmark did was once again place the US taxpayer on the hook if they megabanks got themselves in trouble with their speculative derivative plays and other high risk investments. We need to break these megabanks up now. We need to impose term limits in the House and Senate. We need campaign finance reform and we had better do it quickly.
  • Betsy | | 21 Apr 2015, 12:10 AM Agree 0
    This time, Elizabeth Warren is right. I don't agree with her most of the time, but on this I sure do. Instead of Dodd/Frank's mind-boggling number & complexity of new regulation, we should break up the big banks. They are so big, they add layer upon layer of compliance controls, but they don't have insight into their own operations. We should have let at least some of the banks fail. As it was, consumers suffered and did the bankers? Not a bit.
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