Most of you have seen this already but we've never posted the video. From a Senate Banking Committee Hearing on Feb. 26.
Now we have the tools to shut down the banks.
Who does he think he's kidding. The entire FDIC would seize up and die attempting to resolve JPM's derivative desk alone.
That's the most entertaining line from Bernanke, as he discusses possible future bailouts for too big to fail banks. Entertaining because it's an absolute fabrication. We annihilated this claim back in the day with video evidence. If JPMorgan blew up its derivatives desk, and was facing capital calls, Jaime Dimon would call Robert Rubin who would call Tim Geithner who would call Obama (to inform him of the decision, NOT to ask his permission) then call Jack Lew and tell him to show up at the press conference at 2 pm with Bernanke to announce the bailout. Or some such shit. There would probably be balloons, a marching band from Wall Street and smiling children everywhere. And a big, fat, f*cking photo of Jamie Dimon's face on every wall in the room.
The bailouts are a never-ending psychedelic clown show, but without Bozo and laughter.
And I'm the ringside reporter, once promising and strong, now strung out in the corner muttering under my breath, "Someone arrest Hank Paulson."
Big banks are getting an $83 billion too big to fail subsidy amounting to a free insurance policy from the American people.
Here's the Bloomberg story that Bernanke mentions:
Debating Too Big To Fail Bank Subsidy
Shahien Nasiripour and Reuters Counterparties chat about Fed Governor Jeremy Stein's remarks regarding the too big to fail implicit subsidy for banks.
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