Tuesday, October 21, 2008

Banker Bailout Money to be used to Consolidate Banking Industry

"Let them eat cake" is what another person of royalty said when informed that the peasants had no bread to eat.

What will be Washington's reply to those who have no home to live in?

Nearly 3 million American homes will have been in and will be subject to foreclosure proceedings by 2009.

No small thanks to "King Hank" of the Treasury Department, who fought tooth and nail to keep any provisions out of the No Banker Left Behind Act that would help the little people deal with their mortgages.

Can't have that, no sirree, not here in the "United Banking Corp. of America," where our slavish and house trained Congress jumps to satisfy each and every desire of Wall Street.

Just don't ask them for any bread.

A plan to consolidate the banking industry into fewer and fewer hands.

A collection of kleptocratic oligarchs who will rule with an iron fist from Wall Street, determining who will thrive and who will be left to die on the vine.

Recall all of those pleadings by traitors like Pelosi and Reid, who said time and again the No Banker Left Behind Act was for the little people of Main Street and not Wall Street?

Lies and more lies, a diet staple that seems to be on the congressional menu 24/7.

Here's what happened after another bank consolidation bill was passed back in 1994.

This bank consolidation will harm Main Street, by drying up funds to small business, as this article shows what happened after the feds passed the Interstate Banking and Branching Efficiency Act of 1994.

The importance of small banks to small businesses is shown, for example, by the fact that in 1999 small business loans were 25.5 percent of bank assets for institutions with less than $1 billion in assets. On the other hand, for banks with assets of more than $5 billion, small business loans were only 7.85 percent of total assets.

This act gutted the Bank Holding Act of 1956 that prohibited banks from engaging in non-bank activities, like placing bets on Wall Street.

The laws were gutted, the cops on the beat were told to take a walk and Wall Street went on a binge of nonstop gambling, knowing that payoffs to a corrupt and immoral Congress would shield them from reality when the latest version of "Three Card Monte" folded and left the taxpayers with the bill.

Maybe we should replace the Stars and Stripes with a flag of the 100 dollar bill?

Oh, BTW, surprise, surprise, this article claims that the original bailout amount will not be enough.

Who'd ever thunk that?

From an article in the New York Times:

U.S. Is Said to Be Urging New Mergers in Banking

WASHINGTON — In a step that could accelerate a shakeout of the nation’s banks, the Treasury Department hopes to spur a new round of mergers by steering some of the money in its $250 billion rescue package to banks that are willing to buy weaker rivals, according to government officials.

As the Treasury embarks on its unprecedented recapitalization, it is becoming clear that the government wants not only to stabilize the industry, but also to reshape it. Two senior officials said the selection criteria would include banks that need more capital to finance acquisitions.

“Treasury doesn’t want to prop up weak banks,” said an official who spoke on condition of anonymity, because of the sensitivity of the matter. “One purpose of this plan is to drive consolidation.”

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