Info-Comic: How Banks Became Casinos

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This info-comic, How Banks Became Casinos, offers a bird’s eye view of how banking has become more dangerous and risky in recent years. If you want to understand more about the situation beyond this simplified info-comic, we recommend these posts:

Our Financial Crisis Reading List
What Are Derivatives, and Why Are They Dangerous?
A Derivatives Timeline
Break Up The Banks Already
Our Too Big To Fail Page

And now, the info-comic: How Banks Became Casinos

How Banks Became Casinos

 

Some quotes to keep in mind:

Neil Barofsky, former Inspector General for TARP: “Pretending that Dodd-Frank solved all our problems, as some Democrats do, or simply saying that big banks won’t be bailed out again, as some Republicans have suggested, is unrealistic. Congress needs to proactively break up the “too big to fail” banks through legislation.”

Brooksley Born, former chairman of the CFTC: “too big to fail is the primary problem” and “the Glass-Steagall Act, before it began to be eroded by the bank regulators, was a good idea.”

James Bullard, president of the St. Louis Fed: “We do not need these companies to be as big as they are … We should say we want smaller institutions so that they can safely fail if they need to fail.”

William Dudley, president of the NY Fed: “We are a long way from the desired situation in which large complex firms could be allowed to go bankrupt without major disruptions to the financial system and large costs to society.”

Camden Fine, president of ICBA: “Consolidation in the banking industry and the emergence of financial institutions with explicit government guarantees against failure haven’t exactly contributed to an economic boom. It’s been just the reverse—they triggered an economic collapse.”

Richard Fisher, president of the Dallas Fed: “Given the danger these institutions pose to spreading debilitating viruses throughout the financial world, my preference is for a more prophylactic approach: an international accord to break up these institutions into ones of more manageable size—more manageable for both the executives of these institutions and their regulatory supervisors.”

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  1. [...] Derivatives timeline 2. Explanation of why derivatives are dangerous 3. Infocomic on how Wall Street became a [...]

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