I'm amazed how these banks are being downgraded. I mean, didn't we give them billions of dollars in TARP?
What makes it better is it's Wells Fargo. The bank that took billions in bailout funds, and then never refinances anybody. I also had the displeasure of working for them as an "analyst." Where there was no such thing as "analysis" going on as much as it was data entry. This was also the bank where when I was a 21 year intern I was writing the sovereign risk reports in their economics department but the senior international economist would be her name on my reports. Doing the work of the senior international economist and getting paid $10 an hour to do it.
Ahhhh, those were the good ole days.
Giving out government money to a failing business, is a very bad policy. It rewards bad behaviour. The posting is a perfect example of this bad policy.
ReplyDeleteBanks and businesses that take risks and fail, should be left to fail. It`s that simple.
That is not "government money". That money was stolen from workers.
ReplyDeleteWhat part of absolving banks from moral hazard does the Fed Reserve and the Treasury not understand?
ReplyDeleteI sure wish I could have a business where I could screw up, lose money and get bailed out.
All those bailouts and those damn toxic assets are still on their books.
If they're too big to fail, then the Feds ought to be breaking them up if for no other reason than to minimize the risk to our economy.
Some would argue that these mega-banks such as Bank of America are so incompetent they're too big to succeed.