This is rapidly turning into "Banks are evil. This act is evil. Therefore banks committed this act."
Not it's not. We're discussing the original post if Wells Fargo a criminal enterprise.My assertion is yes. If you care to continue the debate, please refute any of my statements.This is rapidly turning into "Banks are evil. This act is evil. Therefore banks committed this act."
Are you asking me because you don't know, or are you testing my knowledge of S&L regulation? There was a whole bunch of legislation after the 2008 collapse too. Neither FIRREA nor Dodd Frank address the moral hazard of reserve requirements.Before asserting the conditions of the S&L failures were the same as now, what changes were made in the wake of the S&L failures.
No, its not. Relative to the FDIC, the FSLIC had very little hands on control of S&Ls such as capital controls (3%), minimum number of investors (one for S&Ls at the time), time that insolvent firms were allowed to stay open (years).No I didn't. I asserted that currently the FDIC is in the same situation as the FSLIC was at the time of its insolvency. ...
V50, you are an intelligent person. When you examine the facts pertaining to the banking system, you can only draw one conclusion. The banks can engage in risky behavior with no consequence. If the FDIC is incapable of making good its liabilities, history has proven that the government (i.e. the people) will make good the difference. The banks have been continuously bailed out by the taxpayers since the inception of the FDIC.This is rapidly turning into "Banks are evil. This act is evil. Therefore banks committed this act."
Yes, of course you are right, FR banking has nothing to do with this scandal. Cheers.Kevin, I am afraid your argument is too slippery for me and you keep moving the goalposts. The fact that a bank commits some bad acts does not prove it commits other bad acts, just like the fact that a person is a thief does not allow you to hang him for murder. Fractional reserve banking, "too big to fail" and risky S&L loans in the 1980's have nothing to do with this particular Wells Fargo scandal.
http://finance.yahoo.com/news/wells-fargo-fallout-study-says-145943938.htmlThe bank stands to lose $99 billion in deposits, $4 billion in revenue and a customer base that could dwindle by up to 30 percent, a study released Monday by cg42 showed. Ultimately, about 14 percent of customers are actually projected to switch banks, an at-risk level that a cg42 principal still said is "dramatically higher" than what would be expected from any of Wells Fargo's competitors.