Wikipedia co-founder Jimmy Wales spoke bluntly and boldly in a speech given at a conference of community bankers this morning. He called too big to fail an "abomination," and he said "if you run a company into the ground and pay yourself a bonus, that's not capitalism, that's criminal."
It's good to see such a resurgence in calling attention to the problem of too big to fail, which hasn't been fixed and in many ways has only gotten worse since the financial crisis.
Simon Johnson, MIT economist, has a NYTimes article out today that acknowledges this resurgence: "The largest banks in the United States face a serious political problem. There has been an outbreak of clear thinking among officials and politicians who increasingly agree that too-big-to-fail is not a good arrangement for the financial sector."
And an article from David Dayden published this morning notes the same thing: "There’s been an unlikely yet welcome resurgence of chatter about breaking up the nation’s largest and most powerful banks. Bloomberg’s story quantifying the too big to fail subsidy grabbed some eyeballs (and there’s an upcoming GAO report on the subsidy that will do the same). Sherrod Brown announced an unlikely pairing with David Vitter working on legislation on the subject. Dallas Fed President Richard Fisher is going to give a big speech on Friday on breaking up the banks… at CPAC, the largest conservative political conference of the year."
All of this is great news for us since it gives us hope that maybe we will finally break up the big banks and officially end too big to fail.
See the full list of people who are wary of too big to fail.
Also see the reasons we should break up the banks.
flickr photo above from othermore, quote added by us.
"Too big to fail is an abomination". - Jimmy Wales. #ICBALV13— Patrick L. Gerhart (@PatrickGerhart) March 14, 2013
TBTF is an abomination. Jimmy Wales at #ICBALV13— Robert Fisher (@RobertMFisher) March 14, 2013
Wikipedia's Jimmy Wales: "If you run a company into the ground and pay yourself a bonus, that's not capitalism, that's criminal." #ICBALV13— NW Financial Review (@BankBeat) March 14, 2013