Trump’s Treasury Capo Is Against Breaking Up The Big Banks

Steven Mnuchin addressed the Senate Banking Committee and opined that breaking up the big banks would be a “huge mistake.” According to the Financial Times:

Mr Muchin said forcing a split in the banking business would lead to significant problems in the financial markets and the provision of liquidity to the economy and would be a mistake. “We do not support a separation of banks and investment banks,” he said.

The threat that breaking up the big banks would lead to liquidity problems in the economy is getting tired. A study showed that during the 2008 de facto financial collapse, Main Street corporations had no problem tapping into the various short term funding capital markets, primarily the commercial paper market.

Breaking up the Big Banks would be a huge benefit to the entire system, which is why the DC Swamp creatures are against the idea. It would take away the control of the financial system that has been consolidated into the hands of a few entities.   Healthy competition in the banking industry would benefit everyone.

One of the primary reasons the Federal Reserve was founded was to consolidate control of the banking system at the time into the hands of the banks which founded the Fed, as the business model and profitability of these big banks was being attacked by the fast-growing regional banks.

The underlying implication of Mnuchin’s statement is that, just like the Obama administration, the Trump administration supports maintaining the status quo.  The “status quo” is a well-grease wheel that extracts billions from the public and redistributes it to the people running the big banks.   The DC Swamp animals are well-paid to support this status quo.    What this means is that the banks are going to bailed out again when the next crisis seizes-up the markets.  A crisis that is inevitable.

7 thoughts on “Trump’s Treasury Capo Is Against Breaking Up The Big Banks

  1. I agree that a crises is inevitable and that a bailout of the banks are also in the cards. I am more concerned about the aftermath. I am not so sure we’ll continue to hold the reserve currency after the next cardiac arrest in the banking sector. I’m not sure the petrodollar will exist any longer either. How about global con-fidence in the Dollar? Once America is taken to global debtors prison and the carcass has been stripped of assets by the global carrion feeders, then I suspect the parasitic class from D.C. and elsewhere will have their own come to Jesus moment.

    1. As one who is married to someone who was born in the USA but doesn’t live there, I absolutely CAN’T WAIT for the USD to lose reserve currency status. At this point, the USA will be powerless to extort the economies of the rest of the world through their illegal FATCA law, and finally my wife will be truly free from the supposed “land of the free.” She has not lived there for 31 years, has no love for the place, wants NOTHING from it, yet is expected to pay taxes there????

  2. That is one hell of a printing press. The entire central banking
    system is made up of ex Goldman Sachs employees. Trumps
    entire economic advisers are either ex Goldman employees or
    have similar ties to Wall St. The deck is stacked with the low
    cards on the bottom. The sleeping American public trusts the
    dealers. The dealers are dealing to the public from the bottom
    of the deck.

  3. The most optimistic view is that Trump isn’t going to fight on this point right now, that he’s letting corrupt little toad Mnuchin say this now but that when the rubber meets the road, perhaps this fall, that Trump’s having a picture of Andrew Jackson prominently displayed in his office will be more indicative of what will happen.

    As I say, that’s the most optimistic take one can have on this. It’s certainly discouraging.

  4. Dave, I would like to read/hear your thoughts sometime concerning the current mania in cryptocurrencies. I am utterly shocked at the inane cheerleading coming from crypto-cultists despite the obvious problems with virtual ledgers being stores of value. They seem to be confusing gambling for investment and are suffering from hot-hand bias, even though it’s clear that the only difference between fiat and cryptos is legal-tender status. Nothing else. Zerohedge had a good article here detailing BC’s loss of market share here to illustrate: . Thanks!

    Personally, I think the banksters are laughing their asses off at this current runup. What a better way to avoid default in the physical markets than to market the non-physical “coins”.

    1. I don’t think the cryptos are a viable currency for widespread organized societal use. Deep State probably watching them and taking notes for developing a Deep State controlled national digital currency. The move higher in these currencies is what gold would be doing in the absence of manipulation.

      1. Aye. I figure that the DS could also just nationalize/regulate exchanges in order to recycle frns back from taxpayers and into their coffers. They can’t exactly do that with PMs because of their non-monetary uses which make them wholly Independent from the need for fiat-exchanges anyway. But wow…do people love giving up legal-tender ones and zeroes for just ones and zeroes!

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