Greetings DK: Sam Zamarripa here.
This is my first post about the new movement I co-founded, Stop Too Big To Fail. Our goal - become a powerful voice for those of us, who would like to see our 401k's protected from the greedy behavior that nearly destroyed our financial system last year, and we can't do it without you.
I have been on the front lines of this fight for years - I am a two-term Democratic State Senator from Georgia, President of a private equity firm that focuses on developing businesses in the south, and co-founder of a local bank, United Americas Bank, NA of Atlanta - the kind of bank that still knows how to treat people.
When the big banks combined excessive leverage with interconnectivity they created a modern, financial virus called too big to fail. The banks were highly motivated by the fabulous growth and fees while turning a blind eye to mounting risks of global significance. It was like old fashion musical chairs yet when the music stopped we got a modern day viral collapse of the financial system.
On March 12th the Court appointed Federal Examiners released their first 2200 page report REPORTsummarizing Lehman’s accounting practice in the years leading up to the collapse. Not surprisingly, the report reveals aggressive accounting practice, known internally as Repo 105, which helped the investment bank obscure the true extent and depth of their financial weakness. This report is the first of many to come. Aside from detailing the excessive risk and manipulations of the big banks these reports clarify that too big to fail should really be too big to exist.
I co-founded the organization, ‘Stop Too Big to Fail,’http://www.stoptoobigtofail.com to help change this debate. The time for Wall Street’s abuse of the consumer is over. Large institutions carrying too much risk must be broken up and held accountable. Most of all, taxes on institutions for a future bailout fund are simply immoral and unreasonable. Yet, last fall The House of Representatives passed a piece of legislation imposing a levy on firms whose assets meet a $10 Billion threshold in order to secure our country’s next bailout. Establishing a hidden tax that will ultimately be paid by you and me is not a solution to the size of big banks. The tax strategy only institutionalize a too big to fail system and creates incentives for big banks to continue to take risks at our expense.
Over the course of the past couple months, I’ve had the opportunity to talk about this important issue in the media. We are posting new information on our website daily and are monitoring the policy debate. Join us and help shape the debate. Lets replace the too big to fail cliché with a strategy that takes a part financial institutions that are too big to exist.
For more info:
Recent Huffington Post Blog HuffPo Article