To the Editor,
It was understood, even before the results of the Stress Tests, that there could be a division between the ‘healthy’ and ‘unhealthy’ banks (A Dividing Line Through the Financial Landscape, Business, May 8/09).
What is disturbing, as reported in the article, is that two-thirds of all deposits are in these big banks; the same banks that helped create this financial crisis.
And even the supposedly healthy banks have shadowy clouds surrounding them. Goldman received an additional $12.9 billion in taxpayer money from AIG as a counterparty. We the taxpayers must demand the return of that TARP money as well as the original $10 billion.
The article further pointed out that stronger banks are “emerging as institutions that could dominate the industry.” Is that really a good thing?
The bigger institutions caused this financial morass. Bigger is not better. Where is the Glass-Steagall Act when it is so desperately needed?
Author, “Final Audit”
This letter was written in response to the release of the Stress Tests held by the Treasury to determine which banks of the top 19 would be required to raise more capital in a deteriorating economy. It was submitted to the New York Times, May 8th, 2009.