AMERICA’S TBTF BANK SUBSIDY FROM TAXPAYERS: $83 BILLION PER YEAR
It looks like Johnny Citizen in the good old USA is being well and truly screwed
Day after day, whenever anyone challenges the TBTF banks’ scale, they are slammed down with a mutually assured destruction message that limitations would impair profitability and weaken the country’s position in global finance. So what if you were to discover, based on Bloomberg’s calculations, that the largest 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? The stunning truth is that the top-five banks account for $64 billion of an implicit subsidy based on the ludicrous (but entirely real) logic that: The banks that are potentially the most dangerous can borrow at lower rates, because creditors perceive them as too big to fail. Perhaps this realization will increase shareholder demands – or even political furore? The market discipline might not please executives, but it would certainly be an improvement over paying banks to put us in danger.
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Below some sound bites
The financial institutions of today have become the tsunamis of fiscal catastrophe for all but the inner circle. These Draculas of pecuniary are the epicenter of greed and corruption and appear to have the freedom to bleed, people, banks and nation-states of their wealth.
a backdoor bailout of invisible financial players who failed to manage their exposure to a shaky borrower (Anglo)
In the German domestic market, the banks behaved impeccably. However, the external
dealings of these banks came from either a financial asylum or a home for retards.