Regulation, Bailout, Banks

As taxpayers, we know about bailouts given to banks during the global economic collapse of 2008. Banks took an enormous risk that cost us as taxpayers. The failure was avoidable if the banks had followed old regulations. The banks issued original loans that the average home owner was unable to repay over time. In the short term, they produced larger profits for banks, but in the long run they could not recover money from homeowners unable to repay the loans. To keep banks in check and held accountable regulations must be created and implemented. To avoid any future collapse, federal regulators proposed, Dodd-Frank protection act. The bank regulators have been dragging their feet on implementing this law. Banks have continued to take the risk and have even employed lobbyist to prevent necessary reforms. As a taxpayer, I do not want to see another collapse.

The article by Admati revisits the economic collapse of five years ago. The lack of regulations that allowed banks to take unnecessary risks that created the world economic collapse. The article explains how new regulations will prevent future financial crisis within the banking system. The main concern of the article addresses how government leaders are allowing banks to continue to choose many risks. Banks continue to take risks and this will not prevent a future collapse. The article ends with the author challenging us to establish regulations and enforcing them make banks accountable for their actions prevent them from overextending or borrowing to the last dollar they are holding.

The use of logos, pathos, and ethos was successful in the op-ed piece, written by Anat R. Admati and Martin Hellwig. Admati, Anat R. “We’re all still hostages to the big banks” New York Times. 25 Aug. 2013. The use of logo’s Admati points to the new regulations blocked or pushed out for years. Bank lobbyist pushed to stop these new regulations they are willfully unclear. When it comes to new laws banks, operate to prevent them...