Guest Editorial - The Park Record

It is clear that Mr. Glasheen has knowledge and deep background into the finanial markets. There should never be a business that is listed as to big to fail. His point that with such companies the stock holders and company executives get the profits and upside and taxpayers payout the losses and down side are happening. Just look at AIG! I'm glad someone else is as concerned as I am that Utah has a lot to lose with this new federal power grab.

At last, someone can put this mess into historical perspective. I could not have said it better myself!

This article is clear, concise and factual. I doubt if anything in it could be seriously disputed. Yet people will respond to the emotional charges against "villains" and go after the wrong targets. As Mr. Glasheen points out, the real villains are the ones now being asked to receive promotions for the work they did in causing this. The villains being portrayed are the innocent businesses that were force to follow the rules.

Excellent piece, congratulations to the brave author for daring to step outside what we are being told to believe.

Interesting, all of the big bank mergers took place under the Clinton Administration, and now they are blowing up. How come Bill Clinton, Larry Summers, and Robert Rubin do not get blamed in the media? Obama is using those failures to scare the American people into accepting his Euro-Socialism model. Good work Mr. Glasheen. Why should Utah companies be punished for the Clinton's failures?

thanks

john G wrote:

Interesting, all of the big bank mergers took place under the Clinton Administration,

Got a calendar? They took place under Dubya. Quelle surprise.

Actually John G is correct that the mergers took place under Bill Clinton. He was the president from January 20, 1993 to January 20, 2001.

Bill Clinton was also the president in 1999 when the Glass-Steagall Act was repealed. This allowed investment banks and commercial banks to merge. Largely considered to be the reason for most of our banking problems today.

If you want to check facts in the future, try www.wikipedia.org . It is a great place to read about historical events. Unfortunately, it does not contain the Democratic re-writes but it is usually pretty accurate.

It was indeed on Clinton's watch that Glass-Steagall was repealed - which was a HUGE mistake - but bank merger mania was rampant under GWB. Clinton is to blame for getting the ball rolling, but all those mergers did not not occur just in 1999 and 2000.(And I wouldn't rely solely on wikipedia for "facts" - articles are submitted by users, and are not always accurate of balanced). In any event, it is a mess.

If you read the article, the only one referenced after 1998 was the Wachovia-First Union merger. That merger was approved under Summers, and consummated in early 2001.

If you say there are a bunch that took place under GWB, please feel free to cite a reference or two.

The only major merger under GWB was the Wells-Wachovia deal, which was done to wind down the Wachovia-Money Store-Great West-First Union-etc mergers under Clinton. There is no way to argue that Summers and Rubin really screwed up when they allowed those combonations to take place.

Secondarily, we have had a few purchases of assets post Bear Sterns, but if you reference them you will see that they are also wind downs from Clinton-era mergers. Look at the genesis of all of the banks the FDIC has taken over. With the exception of one bank, they all merged post Glass Steagall, and they all took place under Clinton.

You can argue all you want. It is clear that the Treasury-Federal Reserve-Clinton Economic team had no clue what they were doing. I agree with Henry that we should not re-appoint Larry Summers to make the mess any worse. That is not a political statement. I think there are more competent people within Obama's ranks that could do the job.

Sorry. Missed your other point. Wikipedia is certainly a lot more accurate than CNN or the New York Times. That is why wikipedia is growing, and CNN and the Times are both in dire financial trouble.

US Taxpayer: Per your "friends" at Wikipedia, the following are the bank mergers that occurred under GWB (N.B: during the period 1999 through 2000 - i.e. after repeal of GS - there were only 8 bank mergers

2001 Firstar Corporation U.S. Bancorp U.S. Bancorp
2001 First Union Corp. Wachovia Corp. Wachovia Corp.
2001 Fifth Third Bancorp Old Kent Financial Corp. Fifth Third Bancorp
2001 Standard Federal Bank Michigan National Bank Standard Federal Bank N.A.
2001 FleetBoston Financial Corp. Summit Bancorp FleetBoston Financial Corp.
2002 Citigroup Inc. Golden State Bancorp Citigroup Inc.
2002 Washington Mutual Dime Bancorp, Inc. Washington Mutual
2003 BB&T Corp. First Virginia Banks, Inc. BB&T Corp.
2003 M&T Bank Allfirst Bank M&T Bank
2004 New Haven Savings Bank Savings Bank of Manchester, Tolland Bank NewAlliance Bank
2004 North Fork Bancorporation Inc. The Trust Company of New Jersey North Fork Bancorporation Inc.$726 Million
2004 Bank of America Corp. FleetBoston Financial Corp. Bank of America Corp.$47 Billion
2004 J.P. Morgan Chase & Co. Bank One JPMorgan Chase & Co.
2004 Banco Popular Quaker City Bank Banco Popular
2004 Regions Financial Corporation Union Planters Corporation Regions Financial Corporation $5.9 Billion
2004 SunTrust National Commerce Financial SunTrust $6.98 Billion[1]
2004 Wachovia SouthTrust Wachovia $14.3 Billion
2005 PNC Bank Riggs Bank PNC Bank $0.78 billion[2]
2005 Capital One Financial Corporation Hibernia National Bank Capital One Financial Corporation $4.9 Billion[3]
2005 Bank of America MBNA Corporation Bank of America Card Services $35 Billion
2006 Wachovia Westcorp Inc.(holding company for WFS Financial Inc and Western Financial Bank) Wachovia $3.91 Billion[4]
2006 NewAlliance Bank Cornerstone Bank NewAlliance Bank
2006 Capital One Financial Corporation North Fork Bank Capital One Financial Corporation $13.2 Billion[5]
2006 Wachovia Golden West Financial Wachovia $25 Billion[6]
2006 Regions Financial Corporation AmSouth Bancorporation Regions Financial Corporation $10 Billion
2007 Citizens Banking Corporation Republic Bancorp Citizens Republic Bancorp $1.048 Billion
2007 Banco Bilbao Vizcaya Argentaria Compass Bancshares Banco Bilbao Vizcaya Argentaria $9.8 Billion
2007 Bank of America LaSalle Bank Bank of America $21 Billion
2007 State Street Corporation Investors Financial Services Corporation State Street Corporation $4.2 Billion
2007 Bank of New York Mellon Financial Corporation Bank of New York Mellon $18.3 Billion
2007 Wachovia World Savings Bank Wachovia $25 Billion
2007 Bank of America U.S. Trust Bank of America Private Wealth Management
2008 TD Bank Financial Group Commerce Bancorp TD Bank $8.5 Billion
2008 JPMorgan Chase Bear Stearns JPMorgan Chase $1.1 Billion
2008 Bank of America Merrill Lynch Bank of America $50 Billion
2008 JPMorgan Chase Washington Mutual JPMorgan Chase $1.9 Billion[7]
2008 Wells Fargo Wachovia Wells Fargo $15.1 Billion[8]
2008 5/3 Bank First Charter Bank 5/3 Bank
2008 PNC Financial Services National City Corp. PNC Financial Services $5.08 billion[9]

Where to start.....
This list all took place under Clinton. The election was in 2000. Bush took office in 2001. These mergers were all approved under the FTC under Clinton.
2001 Firstar Corporation U.S. Bancorp U.S. Bancorp
2001 First Union Corp. Wachovia Corp. Wachovia Corp.
2001 Fifth Third Bancorp Old Kent Financial Corp. Fifth Third Bancorp
2001 Standard Federal Bank Michigan National Bank Standard Federal Bank N.A.
2001 FleetBoston Financial Corp. Summit Bancorp FleetBoston Financial Corp.
Point well taken on the following list, but please note that all of large mergers were follow on transactions from the Franken-mergers under Clinton. I think you missed the point of the article. Take for example, the Wachovia mergers on your list. This whole process started under Clinton because 75% of the bank was in place when Bush took office. The Wachovia Golden Trust deal was a purchase of a mortgage entity by a money center bank. Given Clinton's policies, there were no legitimate FTC grounds to object to the deal. That was one of the worst transactions in history, but it was a drop in the bucket compared to the other transactions Wachovia did before that. The JP Morgan-Bank became a buyer of assets in the crisis period, so it is hard to argue that the Bank One merger created a problem for the economy.
2002 Citigroup Inc. Golden State Bancorp Citigroup Inc.
2002 Washington Mutual Dime Bancorp, Inc. Washington Mutual
2003 BB&T Corp. First Virginia Banks, Inc. BB&T Corp.
2003 M&T Bank Allfirst Bank M&T Bank
2004 New Haven Savings Bank Savings Bank of Manchester, Tolland Bank NewAlliance Bank
2004 North Fork Bancorporation Inc. The Trust Company of New Jersey North Fork Bancorporation Inc.$726 Million
2004 Bank of America Corp. FleetBoston Financial Corp. Bank of America Corp.$47 Billion
2004 J.P. Morgan Chase & Co. Bank One JPMorgan Chase & Co.
2004 Banco Popular Quaker City Bank Banco Popular
2004 Regions Financial Corporation Union Planters Corporation Regions Financial Corporation $5.9 Billion
2004 SunTrust National Commerce Financial SunTrust $6.98 Billion[1]
2004 Wachovia SouthTrust Wachovia $14.3 Billion
2005 PNC Bank Riggs Bank PNC Bank $0.78 billion[2]
2005 Capital One Financial Corporation Hibernia National Bank Capital One Financial Corporation $4.9 Billion[3]
2005 Bank of America MBNA Corporation Bank of America Card Services $35 Billion
2006 Wachovia Westcorp Inc.(holding company for WFS Financial Inc and Western Financial Bank) Wachovia $3.91 Billion[4]
2006 NewAlliance Bank Cornerstone Bank NewAlliance Bank
2006 Capital One Financial Corporation North Fork Bank Capital One Financial Corporation $13.2 Billion[5]
2006 Wachovia Golden West Financial Wachovia $25 Billion[6]
2006 Regions Financial Corporation AmSouth Bancorporation Regions Financial Corporation $10 Billion

These were mostly shotgun weddings. Hard to argue that they were tied to any "Bush" policy.

2007 Citizens Banking Corporation Republic Bancorp Citizens Republic Bancorp $1.048 Billion
2007 Banco Bilbao Vizcaya Argentaria Compass Bancshares Banco Bilbao Vizcaya Argentaria $9.8 Billion
2007 Bank of America LaSalle Bank Bank of America $21 Billion
2007 State Street Corporation Investors Financial Services Corporation State Street Corporation $4.2 Billion
2007 Bank of New York Mellon Financial Corporation Bank of New York Mellon $18.3 Billion
2007 Wachovia World Savings Bank Wachovia $25 Billion
2007 Bank of America U.S. Trust Bank of America Private Wealth Management
2008 TD Bank Financial Group Commerce Bancorp TD Bank $8.5 Billion
2008 JPMorgan Chase Bear Stearns JPMorgan Chase $1.1 Billion
2008 Bank of America Merrill Lynch Bank of America $50 Billion
2008 JPMorgan Chase Washington Mutual JPMorgan Chase $1.9 Billion[7]
2008 Wells Fargo Wachovia Wells Fargo $15.1 Billion[8]
2008 5/3 Bank First Charter Bank 5/3 Bank
2008 PNC Financial Services National City Corp. PNC Financial Services $5.08 billion[9]
Your list is impressive, but it proves the point of the article in the first place.

Take a look at the names on this list, and I think you will understand a bit better. Why in the world would Clinton allow these bank mergers just 4 short years after the S&L crisis ended? Clinton had 3 1/2 years after the stock market crashed in 1987 before he took office. The economy was filled with stimulus, and he walked into a perfect situation. When the .com boom crashed, George Bush took office 5 months later. Greenspan did not even lower rates until after Bush took office. I am not defending Bush, but it was Clinton that created the 2001-2003 recession, and a good argument could be made that the list below laid the seeds for the problem we are currently in.
1991 Fleet/Norstar Financial Group, Inc. Bank of New England Fleet/Norstar Financial Group, Inc.
1991 Chemical Banking Corp. Manufacturers Hanover Bank Chemical Banking Corp.
1991 North Carolina National Bank C&S/Sovran Corp. NationsBank Corp.
1991 Norwest Corp. United Bank of Denver Norwest Corp.
1991 Wachovia Corp. The South Carolina National Bank Wachovia Corp.
1991 First Union Corporation Southeast Banking Corporation First Union Corporation
1991 Society Corp. Ameritrust Corp. Society Corp.
1992 BankAmerica Corp. Security Pacific BankAmerica Corp.
1992 Keycorp Puget Sound National Bank Keycorp
1992 Barnett Banks, Inc. First Florida Bank Barnett Banks, Inc.
1992 Comerica, Inc. Manufacturers Bank Comerica
1993 First Bank System, Inc. Colorado National Bank First Bank System, Inc.(CNB remained unchanged until after merger with U.S. Bancorp)
1993 Banc One Corp. The Valley National Bank of Arizona Banc One Corp.
1993 Bank of Boston Corp. South Shore Bank, Mechanics Bank, First Agricultural Bank of Boston Corp.
1993 First Union Corporation Dominion Bank First Union Corporation
1993 First Union Corporation First American Bankcorp First Union Corporation
1993 NationsBank Corp. Maryland National Bank NationsBank Corp.
1993 NationsBank Corp. American Security Bank NationsBank Corp.
1994 Society Corp. Keycorp Keycorp
1994 BankAmerica Corp. Continental Illinois National Bank BankAmerica Corp.
1995 Chemical Banking Corp. Chase Manhattan Corporation Chase Manhattan Corporation
1995 First Chicago Corp. NBD Bancorp, Inc. First Chicago NBD Corp.
1995 BB&T Corporation Southern National Corp. BB&T Corporation
1995 Fleet Financial Group, Inc. Shawmut National Corp. Fleet Financial Group, Inc.
1996 Wells Fargo Corp. First Interstate Bancorp Wells Fargo Corp.
1996 CoreStates Financial Corp. Meridian Bancorp, Inc. CoreStates Financial Corp.
1996 Bank of Boston Corp. BayBanks, Inc. BankBoston Corp.
1996 First Union Corporation First Fidelity Bancorporation First Union Corporation
1996 First Union Corporation Center Financial Corporation(CenterBank) First Union Corporation
1996 Fleet Financial Group, Inc. National Westminster Bancorp, a subsidiary of National Westminster Bank Fleet Financial Group, Inc.
1997 U.S. Bancorp First Bank System, Inc. U.S. Bancorp
1997 NationsBank Corp. Boatmen's Bancshares NationsBank Corp.$9.6 Billion
1997 Washington Mutual Great Western Financial Corporation Washington Mutual
1997 First Union Corporation Signet Banking Corp. First Union Corporation
1997 National City Corp. First of America Bank National City Corp.
1998 NationsBank Corp. Barnett Banks, Inc. NationsBank Corp.

I tried to past all of Clinton's bank mergers into one post, and it exceeded the limit of space.

1998 First Union Corporation CoreStates Financial Corp. First Union Corporation
1998 NationsBank Corp. BankAmerica Corp. Bank of America Corp.
1998 Golden State Bancorp First Nationwide Holdings, Inc. Golden State Bancorp
1998 Norwest Corp Wells Fargo Corp. Wells Fargo Corp.
1998 Star Banc Corp. Firstar Holdings Corp. Firstar Corporation
1998 Banc One Corp. First Chicago NBD Corp. Bank One Corp.
1998 Travelers Group Citicorp Citigroup $140 Billion
1998 SunTrust Bank Crestar Financial Corp. SunTrust Banks, Inc.
1998 Washington Mutual H.F. Ahmanson & Co. Washington Mutual
1999 Fleet Financial Corp. BankBoston Corp. FleetBoston Financial Corp.
1999 Deutsche Bank AG Bankers Trust Corp. Deutsche Bank AG
1999 HSBC Holdings plc Republic New York Corporation HSBC Bank USA
1999 Firstar Corporation Mercantile Bancorporation, Inc. Firstar Corporation
1999 AmSouth Bancorporation First American National Bank AmSouth Bancorporation $6.3 Billion
2000 Chase Manhattan Corporation J.P. Morgan & Co. Inc. J.P. Morgan Chase & Co.
2000 Washington Mutual Bank United Corp. Washington Mutual $1.5 Billion
2000 Wells Fargo & Co. First Security Corp. Wells Fargo & Co.
2001 Firstar Corporation U.S. Bancorp U.S. Bancorp
2001 First Union Corp. Wachovia Corp. Wachovia Corp.
2001 Fifth Third Bancorp Old Kent Financial Corp. Fifth Third Bancorp
2001 Standard Federal Bank Michigan National Bank Standard Federal Bank N.A.
2001 FleetBoston Financial Corp. Summit Bancorp FleetBoston Financial Corp.

Read your own post. You specified mergers following repeal of Glass-Stegall, allowing commercial banks and investment banks to merge. Mergers of regular banks go back a long long time, and are irrelevant.

Either you dont understand what you are talking about, or you are unable to face the facts. You pulled out the long list of mergers between banks and other financial institutions. I was wrong because I forgot about JP Morgan Chase and Bank One when I challanged you to provide a different list, but that bank actually has led to stabilization of the current situation so it is hardly a flaw in the overall theory.

Glass Steagall was repealled in 1999. It was enacted in 1933 to separate investment houses and commercial banks. The theory at the time was that if a bank were allowed to take massive stock/bond balance sheet risk it would compromise the banking system if the stock market crashed. In 1987 when the stock market crashed, there was very little fall out in the commercial banks for that reason.

Bill Clinton, Larry Summers, Robert Rubin, and Laura Tyson failed to recognize that when they pushed for repeal of the bill. It was a huge mistake. The point that I think Harry made was that he thought Bill Clinton should have learned the lesson of the S&L crisis only a few short years earlier and taken a different strategy. I agree.

Bill Clinton benefitted from two things. He became president after 3 1/2 years of massive monetary stimulus under George Bush Sr. so the economy was smoking when he got in. Then he had a bogus bubble in the internet and telecom that provided economic growth and hiring. Those jobs and that economic boom ended just as Bush II was taking office. he had to deal with the end of 8 years of a false economic boom and the onset of a recession.

No one here is suggesting that Bush did a perfect job. I did not say it, and I dont think it was in the article that anyone thought Bush did a great job. The point was that if Obama is going to appoint Larry the retread to become Fed Chairman, it was a mistake to give him oversight of all banks. He should have been fired and disgraced when he left office, but the media would never allow that.

Bush had to deal with the repeal of Glass and the mega financial monsters that gave rise to our current problem. When Clinton allowed those companies to merge, he made a big picture mistake and Larry Summers was at the helm. Just trying to limit the additional damage that his poor judgement could cause in an otherwise difficult situation.