Comments on: Fee bonanza spells more trouble for banks http://blogs.reuters.com/great-debate/2009/06/26/fee-bonanza-spells-more-trouble-for-banks/ Wed, 22 May 2013 19:57:34 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: James Reginald Harris, Jr http://blogs.reuters.com/great-debate/2009/06/26/fee-bonanza-spells-more-trouble-for-banks/comment-page-1/#comment-17488 James Reginald Harris, Jr Sat, 27 Jun 2009 19:27:23 +0000 http://blogs.reuters.com/great-debate/?p=4195#comment-17488 It is no surprise to see that when 1.5 trillion++ of government zero cost capital is put to work that those who deploy it will make fees and profits. The industry knew exactly what the net/net result would be when Paulson put the TARP to Politicians and it created the bonanza it designed. The banking lobby knows how to make money for the banking lobby which has grown through unintended consequensces into a firewalled system from the real economy. It is working as it should for its primary customer the US Treasury, which with the US Federal Reserve had thrown all prudence and caution to the wind. It 'The US Banking Lobby' is working much as Military Contracting was at the Outset of World War II and prompting the advent of the Truman Commission. It is the ultimate in Machine Politics and that it has created a mass of money for itself out of a crisis it created itself, was easily to be expected. Certainly we all must mind our own balance sheet in good times and in bad, a bank is no different other than the fact the industry has unlimited access to the treasury and can thereby create a profit for itself when needed. So good for the bankers. What else matters? It is no surprise to see that when 1.5 trillion++ of government zero cost capital is put to work that those who deploy it will make fees and profits. The industry knew exactly what the net/net result would be when Paulson put the TARP to Politicians and it created the bonanza it designed.

The banking lobby knows how to make money for the banking lobby which has grown through unintended consequensces into a firewalled system from the real economy. It is working as it should for its primary customer the US Treasury, which with the US Federal Reserve had thrown all prudence and caution to the wind.

It ‘The US Banking Lobby’ is working much as Military Contracting was at the Outset of World War II and prompting the advent of the Truman Commission.

It is the ultimate in Machine Politics and that it has created a mass of money for itself out of a crisis it created itself, was easily to be expected.

Certainly we all must mind our own balance sheet in good times and in bad, a bank is no different other than the fact the industry has unlimited access to the treasury and can thereby create a profit for itself when needed.

So good for the bankers.

What else matters?

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