Thomas Jefferson (Third President of the United States) made some chillingly-accurate observations about banks over 200 years ago. After his Presidency, he spent much of his time trying to educate everyone about the risks of banking institutions. One of his most famous statements is the following:
This is an abbreviated version taken from many lengthy speeches he gave across the country and throughout the world. The exact words varied from one speech to another, but the intent remained the same: Thomas Jefferson wanted to convey his concerns about banks and bankers, and he thought the warnings needed to be repeated until the day that he died.
- "Banking establishments are more dangerous than standing armies."
This is an abbreviated version taken from many lengthy speeches he gave across the country and throughout the world. The exact words varied from one speech to another, but the intent remained the same: Thomas Jefferson wanted to convey his concerns about banks and bankers, and he thought the warnings needed to be repeated until the day that he died.
Now let’s fast-forward to today’s banks. In the latest financial examination of 30 major banks by the Federal Reserve Bank, five flunked (17 percent). You should expect that the public relations firms for banking institutions will rush to spin the story in a positive fashion. Only bankers and their PR people could possibly interpret this to be good news. It is simply more of the same bad news that we have been seeing since banks were deregulated and allowed to do as they please without regard to risk and consequences for the rest of us. The failure rate would have been even higher if the Fed had not permitted the Bank of America and a few other banks to adjust their capital structure to meet current regulatory guidelines.
