Freshman Sen. Elizabeth Warren fired another salvo at big banks yesterday when she asked Federal Reserve Chairman Ben Bernanke why "too big to fail" financial firms weren't paying for the $83 billion they saved due to the safety net provided by the federal government.
During his semiannual appearance before the Senate Banking Committee, Bernanke said the estimated $83 billion break the banks get is due to market expectations that the government would bail them out if they failed.
"Those expectations are incorrect," he said. "We have an orderly liquidation authority, and even in the crisis, we, in the cases of AIG, for example, we wiped out the shareholders."
"Excuse me, Mr. Chairman," Warren fired back, "you did not wipe out the shareholders of the largest financial institutions, did you, the big banks?"
Bernanke said policymakers lacked the tools at the time, something that has changed since the passage of the 2010 Dodd-Frank financial reform law.
When he said he was in "complete agreement" that "too big to fail" needs to end, Warren pounced.
"But I don't understand," she said. "These big financial institutions are getting cheaper borrowing to the tune of $83 billion in a single year simply because people believe that the government would step in and bail them out. And I'm just saying if they're getting it, why shouldn't they pay for it?"
"I think we should get rid of it," Bernanke answered.
When he said the government has a plan, and it's "moving in the right direction," Warren asked: "Any idea about when we're gonna arrive in the right direction?"
Lisa Gilbert, director of Public Citizen's Congress Watch division, said Warren "came out, guns blazing, and did what people expect her to do, which is she showed the problem of big banks still receiving a taxpayer subsidy."
"The facts are the facts," Gilbert said. "The big banks still believe they'll be bailed out, and he wasn't able to defend that money."
Bernanke told lawmakers the Fed's low-interest-rate policies are giving crucial support to an economy still burdened by high unemployment. Wall Street rose on his comments.
Anda sedang membaca artikel tentang
Elizabeth Warren clocks big Ben
Dengan url
http://terakhirjaman.blogspot.com/2013/02/elizabeth-warren-clocks-big-ben.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Elizabeth Warren clocks big Ben
namun jangan lupa untuk meletakkan link
Elizabeth Warren clocks big Ben
sebagai sumbernya
0 komentar:
Posting Komentar