Chinese Faulty Banks

2012-05-15

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This is Frank Gaffney with the Secure Freedom Minute. Revelations that JP Morgan Chase lost $2 billion have got a lot of people, from President Obama on down, wondering whether there is adequate regulation of the U.S. banking sector. The furor over JP Morgan’s losses has obscured another development in that sector, however – one that should raise far more serious questions about who’s minding the store in this important industry and the adequacy of regulatory mechanisms.

This is Frank Gaffney with the Secure Freedom Minute.

Revelations that JP Morgan Chase lost $2 billion have got a lot of people, from President Obama on down, wondering whether there is adequate regulation of the U.S. banking sector.

The furor over JP Morgan’s losses has obscured another development in that sector, however – one that should raise far more serious questions about who’s minding the store in this important industry and the adequacy of regulatory mechanisms.

At the urging of the Obama administration, the Federal Reserve Board has just approved access to our market for three Chinese government-owned banks. Unfortunately, as Forbes.com columnist Gordon Chang has pointed out, these banks would – by any reasonable definition – be considered insolvent, and wholly inadequately supervised by the communist government that owns them.

That’s no way to increase necessary public confidence in our country’s banking sector.

This is Frank Gaffney with the Secure Freedom Minute. Learn more at SecureFreedomRadio.com.

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