February 4, 2013
UK Takes On ‘Too Big To Fail’ Banks
There is no political will in the United States to do what’s necessary to make sure we don’t see a repeat of the 2008 financial meltdown. The reason might be more complex, but at the root of it is this: money in politics. Our elected officials are beholden to the banks, not the citizens. Across the pond, some are showing the political courage necessary to stabilize the financial system, and make it more amiable to the average person. If successful, banks in the UK will no longer be able to gamble with customer deposits. No longer will banks lean on taxpayer bailouts to hedge against unnecessary risk.
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On Friday Standard & Poor’s lowered the AAA credit rating of the United States. The new credit rating is now AA+ and it marks the first time in history that the U.S. has had its credit rating lowered. It probably doesn’t even need mention that this will serve as political ammunition for opponents to President Obama. It will be beside the point that the Republicans use of the debt ceiling for political advantage is the only reason the United States came precariously close to a first ever default on its financial obligations.