What the banking system really needs is a guy who will step in and force bankers to go back to being boring, risk-averse drips who lend businesses money to buy new equipment or fleets of trucks or whatever. What we have instead are coked-up wannabe big shots straight out of Boiler Room who are washing Mexican drug money and laundering Middle Eastern cash and playing around with wild price-fixing schemes – pretty much everything you can think of that isn’t quietly counting beans and helping grow the economy.
I will reluctantly, gradually and artificially get my libors in line with the rest of the contributors as requested. I will be contributing rates which are nowhere near the clearing rates for unsecured cash and therefore will not be posting honest prices.
“The Consumer Financial Protection Bureau is launching a web site today that catalogs consumer complaints. Banking trade groups are not happy.”
One of the better ways to minimize consumer complaints is to avoid doing things that consumers complain about. When you are terrified by transparency, maybe you should reevaluate your business model before somebody else reevaluates it for you.
“Fairness to bankers may not seem like the most pressing issue on the justice agenda. But in addition to being unfair, conflating actual crooks and the innocent affluent makes it hard to claim that raising their taxes isn’t punishment for some form of misbehavior. Taxes are not a punishment; they are a source of necessary revenue. But if you tie them to the financial scandal, they sound pretty punitive.”
I don’t agree with everything in this Bloomberg op-ed by Michael Kinsley, but I do think this is a very valid point about the problem with the rhetoric of the left right now. We don’t tax people because they are bad people who deserve to be taxed; we tax them because they are people who need to contribute their share.