No Self-Respect

So Chase Bank grew too big to take bankruptcy because it acquired JP Morgan Co. Just like Citi Bank grew too big for bankruptcy after it acquired Travelers Insurance Group (or the Group acqired it). Why didn’t Congress tell us about those takeovers before it gave us the Dodd Frank Act? Instead, it tells us Dodd Frank will save us from more Great Meltdowns by adding volumes to laws and regulations so shakey they couldn’t even save us from Bernie Madoff. Why can’t Congress break up acquiring corporations and put them back to their original size so they can take bankruptcy (like a self-respecting business)? The answer: for fear the acquisitors will squeal like the pigs they are. Better for the taxpayers to keep on bailing them out. Taxpayers never squeal. We mustn’t keep Bank of America from acquiring a thousand more independent banks. Can anyone think all those thousand banks would have made the disastrous subprine mortgages–that brought the mortage foreclosure catatrophes–if their acquisitor had not so ordered?

   Winslow documents past corporate takeover horrors. He investigated them for Congress when it had the backbone to try to stop them. He shows how those horrors created the horrors we live with now. In The Acquisitors we visualize our next Great Meltdown. Why couldn’t the framers of the Dodd Frank Act have read this book? They’d know break-up of the acquisitors is the only answer–not unweildy regulations stacked onto feeble securities laws.

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