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Letters to the Editor - Aug. 30

August 30, 2013

Protecting our interests and our finances

To the editor:

The Independent Community of Banks of America has stated that Too Big To Fail is the greatest threat to the financial system today. Twelve of the largest banks (just 0.2 percent of all banks) hold 69 percent of the assets and are bigger today than they were before the TBTF bailout.

In 1999, three Republican senators — Graham, Leach and Billey — sponsored and passed an act that repealed the Glass-Steagall Act of 1933. This repeal, in effect, removed the safeguards that permitted large banking institutions from combining and consolidating traditional commercial banking from riskier investment activities such as swaps and hedge fund activities.

Democratic U.S. Sen. Elizabeth Warren of Massachusetts took fire from Wall Street as she was crafting a safety net within the new Consumer Financial Protection Agency. Then, the Wall Street lobbyists and Republicans blocked her appointment as head of the agency. Warren won a Senate seat, giving her a pulpit from which to continue her reform of the financial institutions.

Warren and the Democrats continue to champion for the average consumer. Two Democratic senators — Warren and Cantwell — are currently sponsoring the 21st Century GSBA requiring large banks to, within five years, separate standard traditional banking like your savings and checking from riskier investment activities.  

Community banks represent 95 percent of all banking organizations and hold 46 percent to 55 percent of all small business loans. Another Democrat, Sen. Sherrod Brown of Ohio, is working on a two-tiered system that will relieve the small community bank from much crushing (to them) regulation written for the large TBTF institutions.  

Although large banks might feel they are too big to fail, Warren and the Democrats don’t believe they are too big to manage and too big to jail.

Mary Ann Keyser 
Hagerstown

 
Republicans manufacture excuses to attack Eric Holder

To the editor:

Attorney General Eric Holder has come under fire for any trumped-up excuse the Republicans can manufacture. Their real issue with him is the cases his department has been building against the companies and individuals who created the financial crisis. Big fines have been levied against some of the banks. A couple of tycoons might be facing federal charges with jail sentences, and Republicans are protecting them.

The culprits think they will get away with their bad behavior if they keep the lobbying and campaign contributions flowing through the tea party’s nonprofits. The fines are being paid with the money provided to the banks to relieve the logjam of lending for small businesses and home buyers — again to draw us out of the recession. Without shame or contrition, they just keep on cheating the American public, and the GOP works to protect them.

Claudia Martin
Hagerstown

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