Banking: The Next Big Oil?

This is an email I wrote to my legislators....

"I am a native-born Madisonian and Wisconsin resident.. I recently wrote to you for the first time but find the need to write again.

I am becoming increasingly concerned with the structure of the revised economic bail out (no, it’s not a “rescue” or “investment plan”) proposal being formulated by the House and whether adequate safeguards are included to protect taxpayers. I agree that assistance is necessary and understand your support in the recent vote.

There are two related areas of concern I have and I would like to know what current provisions in the package or future legislation may address these areas:

1). Money is a commodity (just like oil). The upheaval in the bank and finance markets has caused a sudden and tremendous contraction in the banking industry creating a small number of “super banks” which will control a large portion of the “money” industry. What provision will be included or will be implemented in the future to prevent these “super banks” from adopting the oil industry’s business plan of monopolistic pricing practices at the expense of ordinary consumers?

2). The banks strongly supported ( and were able to get legislation passed) creating major changes in the bankruptcy laws a few years ago. These changes were detrimental to consumers who find themselves in tough financial states and prevent many from filing bankruptcy when it is their only alternative. This meant that many people with no money could not file bankruptcy which would force banks to show the losses on their financials. The people still had no money and the loans still went unpaid but banks were able to continue to carry these loans on their books as “good “assets thereby artificially inflating their profits and also meant that necessary additions to reserves for these bad loans were not required. What safeguards will be put in place to prevent future financial “hocus pocus like this?"