For anyone who still doesn’t think the economy is rigged against the common American citizen, statements by William Dudley, president of the Federal Reserve Bank of New York, should put your doubts to rest. During a recent grilling by the Senate Banking Committee, the top economic dog admitted openly and unambiguously that the Fed did not go after big banks it knew had committed crimes because they feared it would lead to economic instability. Too big to fail is not a loony conspiracy theory but a hard, cold reality.
Of course, Dudley says that the Fed has “gotten past that,” but why should anyone believe him? The very financial institutions that the Fed is supposed to oversee play a large roll in who gets on the regional Fed boards. It’s a very cozy and incestuous relationship that for all intensive purposes is the banks regulating themselves. For their part, Democratic Senators sounded tough in the committee meeting, but only time will tell if their actions match their rhetoric.