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Democrats on Banks

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  • Strongly Liberal Democrat
    Democrat
    Dallas, TX
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    In his "Orwellian" exchange with Elizabeth Warren, Steve Mnuchin said that the reason today we need some type of undefined Glass Steagall like reform of the banking system is because of "credit risks," whereas, the issue in the 1930s was "conflicts." Both are an issue. Our banking and financial system is bizarre and complicated. It need not be.

    The Democrats' position on "banks" should be this:

    • "Banks" are "designated agents" of the government, very much like private contractors working for the government and under its employ.
    • "Banks" should make loans that "fit inside a box" designed with final authority by the Congress.
    • Those loans should serve public purpose and the Congress and President are ultimately responsible.
    • The Fed should provide unlimited fed funds so that "banks" can make all the loans that they are allowed to make by their regulators and willing borrowers.
    • "Banks" should take deposits 100% insured by the government to account holders and admirably serve the commercial banking needs of the public.
    • Government should not allow "banks" to do anything else but these things.
    • "Banking" should be vanilla, transparent, and boring.
    • The government owes "banks" good macro-regulation of the economy so that borrowers can make their payments on time
    • There is no public purpose served by allowing "banks" to be merged with Investment firms.

  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    Except it is totally anti DNC.

    Let's see who on the forum opposes the above.

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    I believe we should jail the banksters and create publically owned banks like credit unions.
  • Strongly Liberal Democrat
    Democrat
    Dallas, TX
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    Connie Wrote: I believe we should jail the banksters and create publically owned banks like credit unions.

    Yes, publicly owned banks are an option. Could do postal banks at federal level.

    The only problem is the politicalization of lending, i.e. you don't want government deciding who gets loans based on favoritism.

    The reason to use private contractors, i.e. private "banks," is they can make decisions faster and the profit motive should promote better customer service, which theory indicates.