Pulitzer Prize-winning New York Times columnist Gretchen Morgenson tells Bill Moyers that, five years after the country’s economic near-collapse, banks are still too big to fail, too big to manage, and too big to trust. Stockholders’ reaffirmation of Jamie Dimon as JP Morgan Chase’s chairman and CEO this week — despite a year of accusations and investigations at the bank — is further evidence, she says, of an unchecked system that continues to covet profits and eschew accountability, putting our economy and democracy at risk. Morgenson also discusses how behemoth companies like Apple manipulate the system and avail themselves of the biggest tax loopholes money and influence can buy.
“These banks are not getting smaller; they’re getting larger. There are now more too-big-to-fail institutions than there were prior to the 2008 crisis,” Morgenson tells Bill.
And while the Dodd-Frank Act was supposed to prevent that from happening, Morgenson says the law itself is less powerful than those it hopes to regulate.
“Dodd-Frank set up a system to unwind troubled institutions when they become troubled. But it requires regulators taking a really firm stand against large, politically-interconnected, and powerful companies… I just think it’s too easy to put the taxpayer on the hook and bail these people out. So of course the response from these people is going to be, I’ll just do it bigger next time, the taxpayer will be there to bail me out, and we’ll go on our merry way.”
Full transcript below the fold...