Respectfully submitted by Lawrence E. Rafferty (rafflaw)- Guest Blogger
Last week I wrote about a disturbing joint FDIC and Bank of England plan that could allow big banks to grab depositors funds in order to balance their books. FDIC-BOE As a follow-up to that discussion, I saw an article discussing a proposed Senate bill that would require our biggest banks to support a higher capital requirement than their smaller counterparts. The bill in question is co-sponsored by Democratic Senator Sherrod Brown and Republican Senator David Vitter. I thought it was especially interesting when one of this proposed legislation’s critics seemed to indicate that this legislation is unnecessary because it disregards the role the FDIC plays in protecting depositors accounts.
‘ “I view it as a radical view of how American banks should be restructured that seems to disregard the role of the FDIC coverage, prudential regulation and the totally different structure of the 2013 economy,” Petrou said in an interview.” ‘ Bloomberg I guess Ms. Petrou didn’t read my article or the various articles before and after mine that discussed the plan that the FDIC made with the Bank of England to completely avoid the FDIC coverage and allow bankers to take depositors funds and replace those funds with stock shares in order to keep the bank afloat. Or then maybe she did? Continue reading “Bi-Partisan Support for Bill to Mandate a Higher Capital Requirement for Too Big to Fail Banks”
