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13 Bankers Essay

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Authors- Johnson (economics professor at MIT, former chief economics for International Monetary Fund) & Kwak (associate professor at UConn, law degree from Yale, blogger) Obama took 13 major banks and tried to bring them back when the economy was down (I got you, you got me, were straight) • Wells Fargo, Bank of America, City Group, Bank of New York Melon, American Express, JP Morgan Chase, Goldman Sachs, Morgan Stanley, Freddie Mack (Government sponsored enterprise- give out loans that the gov is kicking in a few bucks to help) • Government only let Lehmen Brothers bank FAIL, didn’t bail out. Lehman filed for bankruptcy and triggered the crisis Thesis of the book- country can’t survive without these 13 major bank, we have reached the point where the banks are too big and the gov oversight is too weak – were all in this together Started in the Colonies

• Problem with the central bank (Jefferson)- too much power, public bank but essentially functions as a private bank in the system, CORRUPTION • Good about central bank (Hamilton)- more gov controlled means more oversight, some argue its more stable because of this, encourages commercial purchases through investment… people who are able to get loans is a good ...

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