Wall Street

Representative Barney Frank, co-architect of t...

Representative Barney Frank, co-architect of the Act (Photo credit: Wikipedia)

Too big to fail
Too big to jail
Breaking up is hard to do
But it’s past due
Split the banks
Reinstate Glass-Steagall
Dodd-Frank is
Too little, too late
The Chinese wall between
Banking and investment banking
Never worked at all
Too big to fail
Not too big to nail
Not too big to jail
Save us from the banksters
And their 1% overlords.

State banks

Big Sur, California

Big Sur, California (Photo credit: the_tahoe_guy)

 

There is a move afoot to set up a state bank in California, owned by the state, to provide competition to the too-big-to-fail commercial banks that are too few to really compete. Since I no longer live in California, I am not familiar with the details, but I hope that the bank becomes a reality. Our present financial system is really set up to serve the banks, not the banks’ customers. That must change. The banks consume too large a portion of the gross domestic product, leaving too little for the rest of us. In other words, we are all poorer to make our financial institutions richer. Once California shows the way, it is my hope that other states will see the light and set up state banks of their own. Commercial banks will be forced to offer less costly services and treat their customers better or risk losing them to state-owned banks.