The Financial System Remains Fragile and At Risk Due To Lack of Meaningful Reform

Read this, and remember when the next financial crisis comes, and the officials and academics say, 'who could have seen it coming?'

Both JP Morgan and Citigroup are at the top of the list of banks posing a high contagion risk.

Why don't those who have been charged with the task of regulating and reforming this in the aftermath of the financial collapse of 2008 fix the system? 

 

Why do the Banks and their courtiers on K Street resist reform so strongly? 

Because short term profits and hot money are trumping public interest, sound reason, and even common sense.

Interconnected Banks Pose Greatest Threat to U.S. Financial System

By Pam Martens and Russ Martens

February 17, 2015

Last Thursday, the Office of Financial Research (OFR), part of the Federal boondoggle created under the Dodd-Frank financial reform legislation in 2010 to foster the illusion that the government was reining in risk on Wall Street, released a new study showing almost unfathomable levels of systemic and interconnected risk among the too-big-to-fail banks that cratered the U.S. financial system in 2008 and has left our economy still struggling to right itself.

Authored by Meraj Allahrakha, Paul Glasserman, and H. Peyton Young, the report reconfirms to Americans that nothing significant has been accomplished in the last six years to prevent casino capitalism on Wall Street from crashing our financial system and the U.S. economy again. The report found that five U.S. banks had high contagion index values — Citigroup, JPMorgan, Morgan Stanley, Bank of America, and Goldman Sachs...

Read the entire article here.