Comments on: GRETCHEN MORGENSON | Fair Game: How to Cut Megabanks Down to Size https://4closurefraud.org/2013/01/20/gretchen-morgenson-fair-game-how-to-cut-megabanks-down-to-size/ - Fighting Foreclosure Fraud BY SHARING THE KNOWLEDGE Thu, 04 Dec 2025 17:48:04 +0000 hourly 1 https://wordpress.org/?v=7.0.4 By: neidermeyer https://4closurefraud.org/2013/01/20/gretchen-morgenson-fair-game-how-to-cut-megabanks-down-to-size/#comment-407108 Mon, 21 Jan 2013 11:44:48 +0000 https://4closurefraud.org/?p=56919#comment-407108 All the fraud will come out and all the losses will be taken. Right now it’s the American public that is taking the losses and it is clear that the gov’t has reached the limit in putting the hurt on us, we’ve been in an economic depression for 4 years although they won’t call it that and ordinary working peoples income has fallen for 40 years… The failed megabanks failed because they took the path offered them by the gov’t and the FedReserve , offered by discontinuing regulations and by showing that NO ILLEGALITY WOULD EVER BE PUNISHED IN A MEANINGFUL WAY … The “good” bankers HAD TO go “bad” to not be trampled by the Countrywides and BofA’s much less the Lehmans, the Sachs and the BS’s.

We need to let them fail … start enforcing reserve requirements , sell the pieces .. I probably have enough in my pocket to but BofA right now ,, after all they’re worth a negative couple dozen billion… We can’t start to heal until we cut away the rot.. The time to do that was 15 to 25 years ago.

]]> By: walstir https://4closurefraud.org/2013/01/20/gretchen-morgenson-fair-game-how-to-cut-megabanks-down-to-size/#comment-407079 Sun, 20 Jan 2013 16:17:14 +0000 https://4closurefraud.org/?p=56919#comment-407079 “Richard W. Fisher, the president of the Federal Reserve Bank of Dallas… suggested that megabanks be chopped into pieces, so that no one of them could endanger the financial system if it ran into trouble.”

If a megabank is chopped into two banks and both subsequently fail for the same reason as the original megabank would have failed; then the economic impact would be the shame. The Financial Crisis was not the result of some key bank collapsing due to the unique actions of the individual bank. There was a systemic fallacy that real estate was an inherently profitable investment that was subscribed to by almost every sector of society. We have already had a mass failure of smaller financial institutions which required government intervention – the S&L Crisis. Banks are inherently unstable – they all promise to return their depositors money on demand; but they do not have the funds on hand because the money is invested.

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