Good Banks, Bad Banks
31 Pages Posted: 29 Sep 2017
Date Written: September 27, 2017
This paper examines the factors which contribute to banks being perceived as being “good” or “bad” in terms of their impact on the political economy and society as a whole. We first review some of the historical antecedents for public approbation against banks, then consider how changes in ownership affect bank behavior, then examine the financial performance of different sized banks, and then finally discuss the particular examples of off-balance sheet transactions and incomplete sales as indicia of cheating by “bad banks.” We conclude with a discussion of financial conflicts as prohibited by the Volcker Rule and the larger question of corruption and crony capitalism between the largest banks, elected officials and their regulators.
Keywords: Banks, Federal Reserve, True Sale, Capital, Fraud, off-balance sheet, crony capitalism, regulation, Louis Brandeis, JP Morgan, Walker Todd
JEL Classification: G00, G18, G2, G21, G23, G38, G32, N00, N2
Suggested Citation: Suggested Citation