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Consumer groups call on Federal Reserve to break up Bank of America
Consumer groups call on Federal Reserve to break up Bank of America
by Joan McCarter
A group of consumer advocates is pressing the Federal Reserve Board of Governors and the Financial Stability Oversight Council to use the power the Dodd-Frank Wall Street reform law granted them.
That was precisely why this provision, Section 121, was included in Dodd-Frank, containing systemic risk provisions that allow federal regulators to order a "too big to fail" institution that posts a “grave threat” to basically shrink, to divest and to curtail its financial activities. The primary challenge is going to be getting these regulators to do this particular job, since the law also makes this action discretionary on their part.
http://www.dailykos.com/story/2012/01/25/1058482/-Consumer-groups-call-on-Federal-Reserve-to-break-up-Bank-of America
by Joan McCarter
A group of consumer advocates is pressing the Federal Reserve Board of Governors and the Financial Stability Oversight Council to use the power the Dodd-Frank Wall Street reform law granted them.
"Bank of America currently poses a grave threat to U.S. financial stability by any reasonable definition of that phrase," the 24-page petition said.
It said Bank of America, the nation's second-largest bank, is too large and complex, and that its financial condition could deteriorate rapidly at any moment, potentially causing the market to lose confidence in the bank.
"An ensuing run on the bank could cause a devastating financial crisis," the petition said.
It said Bank of America, the nation's second-largest bank, is too large and complex, and that its financial condition could deteriorate rapidly at any moment, potentially causing the market to lose confidence in the bank.
"An ensuing run on the bank could cause a devastating financial crisis," the petition said.
That was precisely why this provision, Section 121, was included in Dodd-Frank, containing systemic risk provisions that allow federal regulators to order a "too big to fail" institution that posts a “grave threat” to basically shrink, to divest and to curtail its financial activities. The primary challenge is going to be getting these regulators to do this particular job, since the law also makes this action discretionary on their part.
http://www.dailykos.com/story/2012/01/25/1058482/-Consumer-groups-call-on-Federal-Reserve-to-break-up-Bank-of America
From the link in the original:
The group, led by consumer advocacy organization Public Citizen, plans to file a petition with the Federal Reserve Board and other regulators on Wednesday asking them to carve the bank into simpler, safer pieces.
The Fed and the coalition of regulators known as the Financial Stability Oversight Council have the authority to take such action under the Dodd-Frank financial reform law passed in 2010, the group said.
The Fed and the coalition of regulators known as the Financial Stability Oversight Council have the authority to take such action under the Dodd-Frank financial reform law passed in 2010, the group said.
Interesting that this group is finally admitting what others have been saying all along: Dodd-Frank gave the authority to break up big banks.
In any case, I'm all for it. Do it, BoA is a menacing predator.
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