You may find this hard to believe, Democratic Presidential Candidate Bernie Sanders is not happy with Wall Street. I know that is surprising coming from an avowed uber-liberal socialist.
In an OP-ED piece written by Mr. Sanders for the New York Times, he attacked Wall Street as “still out of control” and complained that banks and financial institutions are “bigger today than before the bailout”.
The real villain however, according to Sanders, is the Federal Reserve Bank which oversees financial institutions and sets monetary policies. Sanders claims the Fed “has been hijacked by the very bankers it regulates”. He cites that Chief Executive Officers at the big US banks, including Jamie Dimon of JP Morgan, also sit on the board of the Fed. Also, four out of the twelve Presidents of the regional Federal Reserve Banks will be former Goldman Sachs executives.
He equates this as the foxes guarding the hen house.
Sanders is on to something. ComplianceX reporters have written extensively about “regulatory capture”. Similar to Stockholm syndrome, regulators become intimidated or enamored by the banks they regulate. Examiners, at times, curry favor with bank executives as opposed to discharging their regulatory responsibilities. The regulators fear retribution if they are too strict, and also worry that they would be blackballed from future jobs in the securities industry if they “don’t play ball”. I can’t believe that a businessman, entrepreneur and capitalist like me is defending Bernie…
Sanders solution is to force the banks to increase lending to small businesses and struggling consumers, have greater transparency at the Fed, kick out Wall Street executives from the Fed, and reinstate Glass Steagall which would break up the too-big-to-fail banks.
While the US bankers are worried about Sanders, the European bankers and really afraid. European banks are expected to face serious economic, regulatory, and business issues in 2016 which will result in thousands of layoffs. I hate to ruin the cheery holiday spirit but here is the rundown of anticipated firings:
HSBC – 25,000
Deutsche Bank – 15,000 (including some 6,000 contractors)
Standard Chartered – 15,000
Royal Bank of Scotland – 14,000
Barclays – 7,000 – 10,000
Rabobank – 9,000
JPMorgan Chase – 5,000
Citigroup – 2,000
Societe Generale – 2,000
Morgan Stanley – 1,200
Have a happy holiday from your friends at The Compliance Search Group, The Compliance Exchange, ComplianceJobs.com, and The Wall Street Executive.