Banksters sue for the freedom to create another financial crisis

[marmar]

Some of the nation’s biggest banks and industry groups are suing the Federal Reserve over the annual “stress tests” it uses to determine how much cash banks are required to keep on hand in case of economic turmoil.

The Bank Policy Institute, an industry group representing JPMorgan, Goldman Sachs, Citigroup and others, joined the American Bankers Association and other major groups to file the suit. The groups said they don't oppose stress tests but that the Fed's “lack of transparency” around how it conducts them translates to “significant and unpredictable volatility” for banks, according to the suit filed Tuesday in the U.S. District Court for the Southern District of Ohio.

“When banks are forced to hold excess capital — not to protect against the risk of loss, but instead to guard against the volatility of the Board’s undisclosed and ever-changing criteria — it reduces credit availability, hinders economic growth, and harms the American consumer,” the suit states. ....................(more)

https://www.salon.com/2024/12/24/big-reserve-over-minimum-cash-requirements/?in_brief=true

[dutch777]

1. I am fine letting banks off the leash as long as we taxpayers are not the ones bailing them out. Let some fail.

Those bailouts in Silicone Valley were wrong. I get insuring the average Joe but big corporations and big banks, they can private insure or self insure as a group and see how that feels when there is a loss. I will bet in the not too distant future some financial institution will make a bet on something crypto that will break bad and we'll be bailing that BS out.

[RainCaster]

2. Banks that invest in zero value assets should not be helped

Any bank that wants to be stupid should be allowed to do so. Providing that:
1. Taxpayers don't bail out the idiots
2. All banks have to publish where they invest the money they have

Realistically, they should not be called banks any longer, but something else entirely.

[dutch777]

4. And your last point is the danger point. Too many unregulated aspects in the finance markets these days.

The finance types come up with all these creative investment instruments that fall outside the purview of regulators and create systemic risk. Creative finance (and insurance thereof) got us into the 2008 debacle and while some instruments have been renamed the same or worse non-sense continues.

[in2herbs]

3. The leash they want to be free of is to be allowed to use the money we deposit into banks

for Wall Street stock trading. Read Project 2025. As the market rises and falls, what security is there for the money we have deposited into our savings and checking accounts in the bank.

For those unaware, financial advisors currently have authority to invest the $$ deposited into IRAs or retirement accounts without approval, knowledge, or consent of the investor.

[Wounded Bear]

5. Your thread title reads like it's from The Onion. Wish it was...

[Stargazer99]

6. Make it so that if a bank fails and we the taxpayers have to save it that it automatically becomes owned by the Feds

North Dakota has a state owned bank, does any know the benefits of this state bank as opposed to privately owned?

[raccoon]

7. Make it so that some of them go to jail.

Isn’t that what they do in China or is it worse in China?