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FBN’s Peter Barnes on the debate in Washington over how to deal with big banks.
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Too big to fail back in the spotlight as banks faced a second round of stress tests from the Fed are Peter -- is -- Washington DC with more Peter Hart.
That's right -- was a big banks will be under the microscope all week in Washington on too big to fail the Fed will announce bank capital plans on Thursday for the eighteen largest banks that just went through those stress tests.
A house committee will hold a hearing Thursday on too big to fail.
A senate committee holds a hearing Friday on JPMorgan Chase is six billion dollar trading loss with the London -- and big bank critic Richard Fisher president of -- Dallas fed well hammer big banks again in another speech on Friday.
To critics like Fisher too big to fail means that big banks would still get government bailouts if they get in trouble and all that gives them competitive advantages.
Dodd-Frank financial reform are supposed to fix all of this but critics say it did not go far enough they want congress to step in break up the big banks which are pushing back.
Force the banks to spin off their trading operations simplify their operations.
Split up the conventional banking and this crazy Wall Street risk taking.
That's what we saw for fifty years under -- for sixty years under Glass-Steagall we saw that kind of split.
Between Wall Street speculation conventional banking we need to restore something like that we serve a lot of global customers.
And some breaking of the US banks would force those customers.
Non banks.
To look elsewhere to do business.
And that puts again puts us US banks have competitive disadvantage.
Now I have -- -- lawmakers are proposing legislation to put more limits on big banks even break them up but.
The legislation faces an uphill fight in congress because of intense bank big bank opposition -- Great Peter price of -- -- really --
