I won’t tell you who I was meeting with but I was on a tour of big banks and met with three of them on a big deal.
All anyone wanted to do was discuss the new stimulus package; the new legislation; and the law of unintended consequence.
So the new regulations around dollars into banks in the legislative package have made all banks and bankers want to buy their way out of the stimulus package.
But only a few will be able to pull it off. The ones that buy their way out won’t be regulated. They will be able to recruit and hire the best and the brightest from the banks that can’t buy out their government investments. They can pay salaries and bonuses and recruit great execs.
The banks left with government dollars will suffer a brain drain and a client exodus. Those banks will be in deeper trouble. The government will have to pay up even more dollars to save those troubled banks.
Private boutique banks will prosper. A few big banks will scale. Many banks with government dollars will crater and international banks will prosper and become more important to us here in the US.
Stimulus dollars may be like taking heroin, it feels really good until it kills you.
So Teddy, where do the working folks invest for the future? The 401K just is not making the grade. Way To Go Caps!!!!!!!!
ted — i hope those new boutique banks will be tightly regulated so that they don’t create the same kind of hole the S&Ls and derivative/commerical banking institutions created for us. no one should be beyond the reach of the new financial regulations that this country will need to get out of this crisis. and yes the salary caps ought to extend to them as well.
it seems that salary caps have helped our major league sporting entrerprises to flourish. why wouldn’t they work in the banking sector — i guess the only way the caps work is when everyone has to abide by them. so i say slap the caps on these new banks as well.
Wall Street is littered with the bodies of the “best and the brightest” who made some of the most extraordinary dumb ass decisions and took the most unconscionable risks. So if the unintended consequence is that a stupid bank will hire supposedly bright people who they over pay to make catastrophic decisions, I say all the power to them. I’ll leave my money in the hands of a highly regulated bank who won’t throw my money away.
Did they show you the money? Hope you get your deal lined up and financed – Lets Go Economy!
We tried to tell people, but they just wouldn’t listen.
“Change” is not synonymous with “improvement.”
And now, all we’ll be left with is change…
We hope you can believe in that!!!
I assumed that would happen, but it’s certainly disconcerting to hear confirmed. All this bill ensures is that bailed-out banks will operate as efficiently as Congress.