Ben Bernanke on Too Big to Fail
Ben Bernanke wishes you would STFU
as the gentleman still has the floor
Not content with getting supervision of $50 billion and up banks, Bernanke is still on this push to save the Fed's ass. Apparently no one has informed him that A) no one cares - no one important anyway - and B) there are other newsworthy things going on and he can save the speech he's given us 13 times already this year for some other day.
It would be nice if someone would tell him his 15 minutes are over.
Federal Reserve Chairman Ben S. Bernanke said any mechanism to dismantle firms deemed too big to fail must avoid disruptions to the financial system while imposing costs on shareholders and creditors, not taxpayers.
“Market participants must be convinced that if one of these firms is unable to meet its obligations, its shareholders, creditors and counterparties will not be protected from losses by government action,” he said two days ago in a speech in Orlando, Florida. “We need an alternative for resolving failing firms that is neither a disorderly bankruptcy nor a bailout.”
Congress is considering a resolution mechanism for large, complex firms as part of the most sweeping overhaul of the financial regulatory system since the Great Depression. The changes are intended to prevent a repeat of the crisis that prompted bailouts such as the $182.3 billion rescue of insurer American International Group Inc., in which the Fed took part.
“If, in the end, funds must be injected to resolve a systemically critical institution safely, the ultimate cost must not fall on taxpayers or small financial institutions, but on those institutions that are the source of the too-big-to-fail problem,” Bernanke said in his speech to the Independent Community Bankers of America.
Like I said, no one cares. I must because I bothered to post about it but it's Monday and I still don't feel like talking about Obamacare.