Hail HYDRA! Immortal HYDRA! We will never be destroyed! Cut off a limb and two more shall take its place!
Am I the only one reminded of the run-up to Iraq by the finance crisis? There was another epic FAIL the hippies got right -- unless you redefine insiders heading for the exits dragging big sacks of cash as success. The totally transparent bullshit, our famously free press eating it up, the whack-a-mole rationalizations, and especially the lying and looting -- it's all there. Anyhow, the always interesting Interfluidity has a terrific post up, but I only have time to quote this zinger:
It's not exactly right to say that our don't-ask-don't-tell quasinationalization policy has given us "ownership but not control". An assertive Treasury secretary has tremendous leverage over zombie bank managers. Instead, what we have is is control without accountability. An informal, unauditable, hydra-headed set of private managers and public officials controls how quasinationalized banks behave.
I think the word you are looking for is oligarchy.
Neither taxpayers nor shareholders have reason to believe that decisions are being taken in their interest. The informality and disunity of control impedes the kind of hands-on, detail-oriented supervision and risk management that ought to be the core preoccupation of bank managers.
Maybe they'd rather not know how bad the fraud is?
Exactly as opponents of nationalization feared, America's large banks are poorly run behemoths that routinely make idiotic commercial decisions to satisfy tacit political mandates. No one really knows who is responsible for what.
Yep. No transparency, no accountability, brought to you by the Big Money Democrats running the Party, the administration, and the country.
Well done, all.
UPDATE Larry Summers on FOX today:
ummers reiterated the administration’s assertion that “the vast majority of banks in the U.S. are well capitalized.”
Which is dishonest, since it's the few big banks -- in other words, the stomping grounds of the oligarchs -- that are the problem.
“There’s work that needs to be done,” to fix the ailing financial industry, including raising capital and providing additional government [that would be my money] money to banks “where necessary,” Summers said.
But not, one notices, breaking them up, let alone creating a public option for banking.
“We’re going to be in a good position to provide the support and set the framework in which the banking system can move along the process of recovery,” Summers said.
No matter how much blood you pump into a zombie, it's still a zombie.