Banks prepare for demise

For the Headlight

Posted: 09/20/2011 12:00:00 AM MDT

As part of the Dodd-Frank Wall Street reform legislation, banks with greater than $50 billion in assets have until Dec. 31, 2012, to draft their Living Wills. This is supposed to instill confidence in the public.I’m sorry, but banks planning out what happens after they die does not give me any confidence what-so-ever in the banking system. I can’t help but notice the first three letters in the word confidence are CON.

What would actually instill confidence would be for banks to operate with sound business and banking principals instead of expecting bail-outs and hand-outs and using hedonistic accounting practices to hide what’s really on their balance sheets. Instead, Dodd-Frank demands the banks instill CON-fidence with the public that all will go smoothly if any of the big banks die (i.e. collapse) and their living wills have to be executed.

I’m sure a lot of people have been conned by the Dodd-Frank legislation that government has actually done something to make things better. I am confident Dodd-Frank achieved nothing but a con-job.

Leslie Bronken, Deming

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