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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsConsumer 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.
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 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.
gopiscrap
(23,761 posts)tridim
(45,358 posts)JPM Chase, IMO is the worst company on the face of the planet.
Response to tridim (Reply #2)
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ProSense
(116,464 posts)I suspect BoA's recent activities, including the debit card fee debacle, are keeping them in focus.
Bank of America: Well Modify Loans If Youll Erase All The Mean Things Said About Us On Twitter
http://www.democraticunderground.com/1002225081
dixiegrrrrl
(60,010 posts)I am not sure many people understand what a massive grip on the world economy Goldman has.
dreamnightwind
(4,775 posts)Odin2005
(53,521 posts)There should be no nation-wide banks, only local and regional ones.
Ian62
(604 posts)People can vote with their feet though.
Small local or State wide bank.
Or Credit Unions.
ananda
(28,866 posts)And break up ATT while you're at it.
another good idea. Would be great if it could spark as much interest/outrage as the debit card fee, but I doubt it.
Johnson20
(315 posts)their debt would be paid off? There is one heck of a bunch of public and private retirement plans as well as little people holding it.