Wall Street Bankers Go Crying to Mommy - and Get a Bottle

Momma Bernake is giving the bottle to Wall Street Bankers and Traders to keep their businesses afloat. Do you think they'd throw any of us a lifeline? Doubtful.

I just read a terrific article on Fortune by Allan Sloan called The Escape of the Enablers.  It justifiably calls out the big Wall Street banks who claim that markets solve everything, until they run into trouble and go begging to the government for handouts.  How ridiculous is it that big banks and investment houses need the Federal Reserve to bail them out?  Aren’t they supposed to employ the smartest, the most intelligent, the most capitalistic of people?  Please. 

This embroglio, like all the others lays bare the farce.  The companies make money by developing simplistic, yet sophisticated sounding schemes, and then running them, running them, running them into the ground until they beach themselves.  Look at the subprime mess.  They took a bunch of sub-prime loans, guzzied up the packaging, and sold them as A credit investments.  People bought the jig because they believed the banks knew what they were doing.  Hedge funds bought.  Everyone bought.    

What really peeves me is that these same banks will turn down a request from you and me to refinance the terms of our mortgages but ask the government, with out tax dollars, to help keep their operations afloat.  Sloan calls this the “to big to fail” syndrome.

Maybe so.  But if these big buys who went crying to Momma get big bonuses, then I’m going to get really mad – and you’ll all hear about it.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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Comments

  • WPickering

    August 18, 2007

    Of course they are going to get their big bonuses. If the market comes back this year you will hear all about it. If it doesn't, you won't, but they will still get them.

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