Congress votes to ease bank regulations

[jyaku 138]

https://www.cbsnews.com/news/house-approves-bill-rolling-back-banking-rules/

 

LOL. Guess we didn't learn anything from the 2007-08 financial crisis with bankers did we?

 

CEOs are under constant pressure to make more money for shareholders.

 

It worked before like this pre-2008:

You purchase $1,000,000 of CMO mortgage bonds earning 5% on no-doc ARM loans on subprime credit. Then you put up those bonds as collateral to purchase $19,000,000 lower risk fixed rate mortgage bonds, selling off the risk to suckers who want yield. Now you are getting interest on $20,000,000 in bonds with just $1,000,000 in collateral!! The is how Bear Stearns and Lehman Brothers made mega profits.....until people stop paying on those mortgages and even AAA bonds went south causing massive margin calls ....and both companies went belly up.

Then FNMA and FHLMC both went into technical bankruptcy, along with AIG for BUYING RISK on those levered bonds. They were collectively facing TRILLIONS in losses, requiring the government to effectively nationalize them. Eventually all large banks were required to have partial government ownership to provide stability and oversight of management.

Dont worry though - they will get it right this time - and if not we can bail them all out again.

 

THANK GOD!! Finally someone thinking of those poor, long suffering banks. Now they can bilk us again and again and again.

 

 

So much winning!!!

[Dashinka 24,597]

Considering Dodd-Frank wasn’t touched and this passed by a rather large bipartisan majority, I think the leftist biased media may have their analysis wrong.