Poor Richards Report
Chapter 5
Break Up The Major “Banks”
The Chairman or President of every major bank worldwide is a BASTARD! To become one he had to be one.
Today most heads of banks were brokers. The true banker today thinks only how to make more money. With the checks and balances of yesteryear are now only myths and the power of money can be seen everywhere. The Holy Bible of the Christians cautions against greed all through the Old and New Testaments and many other religious organizations I believe.
The control of the flow of money is of the utmost importance. Eras of easy credit have led to access of wealth into too few hands. Once one has made a million one wants to make more. To do this one must cut corners and expenses at the expense of many.
Eventually politicians have to be bribed to make everything legal. Not ethical, but legal in the eyes of the law.
Unknowingly the public is being bribed by rising markets while manipulation rides the ocean waves. Each wave crashed onshore just before the manipulations sell. Then a new wave emerges with new surfers enjoying the thrill.
Then underneath it all a tsunami comes and everyone wants to sell. But To whom?
It happens in every cycle. The institutions (banks, hedge funds, mutual funds, and large investors that can manipulate a security) who control the flow of funds, beside the government and their agencies, decide to sell along with the average investor, find out there are bids for securities. No buyers. Markets close. It starts with one country and the sellers go the next country.
Finally good old USA! It does not matter how strong the economy is. If the umpires are bribed, eventually the fans will riot.
This is fact. We must act now before the bomb explodes.
We must break up the banks. Every banker with brokerage experience gets shifted to brokerage business. Bankers now become real bankers and make loans and mortgages and service them locally. No more dumping them on Washington D.C.. This will enable banks to pay interest on deposits based upon a percentage of earnings. Certain amounts can be daily at a lower rate while a higher rate can used for long term deposits.
Banks will not be allowed to issue Certificates of Deposits, or borrow money in the open markets, but only from the Federal Reserve. (Banks that have excess funds at the end of the day, lend those funds to another bank that belongs to the Federal Reserve that needs it overnight and pays a small interest fee in doing so.)
All citizens of every country earn a wage with which to live by. These wages are the basis for a country’s strength economically. If the wage earner has faith in the financial institution and their government then they make deposits. If they lack faith, like many Japanese have in the past, they put the cash in the home freezers. Thus the expression – Cold Hard Cash”
Each country needs a strong conservative banking system that will attract deposits from the local community.
Listed below are the crucial areas of reform. Please keep in mind that they are draconian in nature but do we have a choice? It is going to happen sooner or later.
Summary of Bank Break ups more to follow later on.
1. All banks will pay off shareholders at Net Tangible Book Value.
2. Banks will break up into Commercial, Financial, and Savings.
3. No Directors shall be a public office holder or a member of the clergy.
4. Each director will own a portion of the bank based upon book value. Fines will be paid from directors based their percentage of BV holdings.
5. Commercial shall consist of checking accounts, mortgages, local business endeavors that serve the community, county and State.
6. The Financial shall consist of brokerage, bonds , research, distribution of equities to public and private accounts.
7. Savings banks can originate or buy mortgages from commercial banks. They will have the use of money market funds at a lower rate than savings accounts that will pay quarterly.
8. All accounts will be computerized to determine that all legal requirements are being met. This will stop corporations opening several accounts at various banks. This “inspector general” can be paid from funds at the various banks he serves.