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"If Bank of America was on the brink of collapse would you bail them out?"
If you say "Yes". Then you are supporting the bailouts of 2008, and we all saw what these guys did when they were bailed out with OUR money. They gave out bonuses and so forth as the first order of business.
If you say "No". Then you are letting the average family get taken under because of the mess the government has allowed to fester.
8 years ago these banks were deemed "Too big to fail", and then after we bailed them out, we allowed them to grow even bigger?
How does the average family get taken under? You do know deposits are insured for up to 250k right?
Merging commercial banking and investment banking is what resulted in overleveraged banks. After the collapse, every investment bank(which was all the big banks) had to recharter themselves as commercial banks to be eligible for bailout gifts, even American Express converted to get billions interest free. Even now, banks are able to borrrow from the Fed at zero percent interest. How can you not make money on loans when you are paying nothing on deposits and nothing on capital funding?
I agree with most of what has been posted, but the reality is now many are actually bigger than in 2008.
Should the government FORCE a breakup?
Yes.
Lets say you have a billion dollars invested in company X. But...bad news....we're going to break them up. Now you have 500 million in company Z, and 500 million in company Y. You can choose to invest in other companies, or pick which one serves your goals better.
Breaking up mega companies isn't going to make anyone poorer in any significant way.
The problem with this question is that it is skewed.
The correct answer would been to have stopped the repeal of Glass Steagall which kept the banks from over leveraging deposits, and playing stock market roulette. Aside from the bailout question, those bankers who repackaged toxic assets as AAA investments should have been sent to prison. None, NOT ONE was.
These criminals make Bernie Sanders look like a school kid when it comes to robbing people of their wealth.
Well, now you're moving the goal post. In the OP it was asked, "If Bank of America was on the brink of collapse would you bail them out?". We weren't asked about what could be done to prevent the collapse from ever happening.. Hindsight is always 2020.
The correct answer is no corp.,company, group or individual should be bailed out with money skimmed from the pockets of American citizens.
And "too big to fail" is a lie.
As Loveshiscountry points out, the FDIC covers quite a bit.
The scary part is how not one of the candidates made that point.
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