Neel Kashkari still has not changed position about the Too Big To Fail Banks….I wonder what Kashkari feels about his former employer, Goldman Sachs, going into the retail banking.
“I continue to think that the largest banks in the country are too big to fail.”
That might sound like a Bernie Sanders sound bite, but it’s actually from a speech that the Federal Reserve Bank of Minneapolis president gave Monday.
Nearly eight years after the financial crisis shocked the global economy and caused a massive recession, the consensus view is that big Wall Street banks are a lot safer now.
But are they safe enough?
“I am skeptical that current efforts to fix that problem will ultimately work,” said Neel Kashkari, the head of the Minneapolis Fed.
It’s unusual to hear someone from within the Fed be so critical of Wall Street regulation, since the Fed is one of the main watchdogs over big banks. Earlier this month Fed chair Janet Yellen defended all the ways regulators like the Fed have made the system safer.
Goldman Sachs has opened its vault to the 99 percent.
Now you can park your money with Lloyd Blankfein’s investment bank as Goldman started taking online deposits as low as $1 for savings accounts on Monday — a bit lower than the $10 million minimum required for its private banking clients.
The new retail banking arm, called GS Bank, is offering some sweet interest for early movers.
For new deposits, Goldman will give 1.05 percent annual yield and 2 percent on a five-year CD.
“Recently Goldman Sachs reached a settlement with the federal government for $5 billion because they were selling worthless packages of subprime mortgages,” Bernie Sanders shouted (as he does) in the last Democratic presidential debate. “If you are a kid caught with marijuana in Michigan, you get a police record. If you are an executive on Wall Street that destroys the American economy, you pay a $5 billion fine, no police record.”
This lack of accountability for Wall Street and the perception of a two-tiered justice system gnaws away at Americans’ trust. But now that the Goldman Sachs settlement Sanders referred to has been finalized, I’m sorry to say that he was wrong. If you are an executive on Wall Street who destroys the American economy, you don’t pay a $5 billion fine. You pay much, much less. In fact, you can make a credible case that Goldman won’t pay a fine at all. They will merely send a cut of profits from long-ago fraudulent activity to a shakedown artist, also known as U.S. law enforcement.
Sells online deposit platform to Goldman Sachs
GE Capital, once a big player in housing finance, is now just a handful of days away from exiting the U.S. banking system after the company completed the sale of its online deposit platform to Goldman Sachs.
The sale also included including the transfer of all of GE Capital Bank’s U.S. deposits, approximately $16 billion of deposits, which are comprised of online savings accounts, online Certificates of Deposit, and brokered CDs, have been transferred to Goldman Sachs.