US Should Let Some Big Banks Fail

[falcon]

Some Republicans in congress are fed up with the never ending bailout of the Wall St. banks. About time someone objected to pouring more taxpayer money down the drain. Let them all fail starting with Citi.

The United States should let some big troubled banks fail rather than commit more federalfunds to prop them up, two key congressional Republicans said on Sunday.

Senator Richard Shelby, top Republican on the bankingcommittee, said the United States should not mimic ***an, which in the 1990s propped up failing banks and prolonged its economicdownturn.

"Close them down, get them out of business. If they're dead, they ought to be buried," Shelby told ABC's "This Week" program. "We bury the small banks. We've got to bury some big ones and send a strong message to the market."

Financial authorities have been under increasing fire as hundreds of billions of dollars of loans and capital infusions into distressed institutions have failed to halt the economic downturn, which has only accelerated in recent weeks.

SenatorJohnMcCain, who remains a Republican leader after losing the 2008 White House race to President Barack Obama, criticized the new administration's response to the banks.

"I don't think they made the hard decision and that is to let these banks fail," McCain told "Fox News Sunday."

[bergall]

not with the dummos in power.... Gotta keep the banks afloat so they can
slip a piece of pork in there when you're not lookin'....

I don't really care about the banks per se. What does begin to concern me is the rumor of
pending insolvency of the Federal Depositor's Insurance Company. If this gets 'viral' so to speak,
there could be a run which would hasten both bank failures and the failure of the FDIC...not a
pretty picture !