The President of the Federal Reserve in the state of Minnesota has recently made shock-waves by commenting on and strongly chastising the existence of big banks on Wall Street that seem to be sucking the nation and the world dry. The Federal Reserve President of Minnesota’s comment engendered some large amount of news from a generally docile state of Minnesota. The head of the federal financial body claimed that the world, and indeed the United States legislative branch had been focusing far too much on the large banks and the regulation of the interest rates.
The Federal Reserve President was also quoted as saying that the mere regulation of interest rates was not enough for the larger economy and the plight of the globally ailing financial markets. The financial sector had undergone a global catastrophe nearly a decade ago in 2008. The financial meltdown was a case of callousness by the government and the private investment sector as well. The head of the Federal Reserve in Minnesota has however, warned that the similar behavior of being callous by the government and the private investment sector may lead to an even worse situation than that of 2008, one which the world would not be able to recover from, especially since the restored economic structure is too weak to handle any further crisis and bailouts.
Neel Kashkari, the President of the Federal Reserve in Minnesota has strongly advocated for the breaking down of larger banks into smaller institutions. This is claimed to be much more useful considering that the division of the larger structures would staunchly disallow the exploitation of small and medium size businesses. This was also a strong gesture against the lack of action taken by the government to curb the same sort of exploitation carried out by larger institutions.
A call for credit cessation
It is stated that larger financial institutions are able to handle any sort of calamity to a greater extent than that of the smaller and medium scale institutions. Additionally, in spite of their size and ability, the larger institutions are still the first to receive any bonuses or bailout packages that are provided by the government in order to keep the larger economy afloat. Neel also mentioned that the credit unions are gaining more power than what must be afforded to any such institutions, which must be stopped.