The Institute of International Finance (IIF) is urging President Obama and the rest of the G-20 countries to keep "supportive policies" in place and not to impose leverage limits to banks.
The IIF is a lobbying group representing the world's largest banks. Its board has executives from Citigroup, Bank of America, Barclay's, Credit Suisse, Bank of China, and BNP Paribas.
These "supportive policies" include keeping short-term interest rates close to zero, printing money, and making taxpayers guarantee financial institutions that are "too big to fail."
These policies are intended to stimulate economic growth by making lending more accommodative for consumers and creating more jobs. But with consumer credit falling by a record $21.6 billion from a year ago and unemployment at 26-year highs and, it's clear these policies aren't working.
Why then does the IIF think these policies must remain in place? Maybe it's because the banks they represent are seeing enormous profits. In January, Bank of America, Citigroup, Goldman Sachs, and JP Morgan Chase recorded more than $20 billion in losses. As of last quarter - mostly because of "supportive policies" - profits for these four institutions surged to $13.6 billion.
The IIF states on its website, "Our mission is to support the financial industry in prudently managing risks."
If this is your mission, how are you still in business?
The IIF is a lobbying group representing the world's largest banks. Its board has executives from Citigroup, Bank of America, Barclay's, Credit Suisse, Bank of China, and BNP Paribas.
These "supportive policies" include keeping short-term interest rates close to zero, printing money, and making taxpayers guarantee financial institutions that are "too big to fail."
These policies are intended to stimulate economic growth by making lending more accommodative for consumers and creating more jobs. But with consumer credit falling by a record $21.6 billion from a year ago and unemployment at 26-year highs and, it's clear these policies aren't working.
Why then does the IIF think these policies must remain in place? Maybe it's because the banks they represent are seeing enormous profits. In January, Bank of America, Citigroup, Goldman Sachs, and JP Morgan Chase recorded more than $20 billion in losses. As of last quarter - mostly because of "supportive policies" - profits for these four institutions surged to $13.6 billion.
The IIF states on its website, "Our mission is to support the financial industry in prudently managing risks."
If this is your mission, how are you still in business?
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