GOP Presidential hopefuls Jeb Bush, Ted Cruz, Chris Christie, and Scott Walker today issued a joint statement "of agreement on the economy."
Among the topics of that agreement is that certain corporations, particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the U.S. greater economic system. So, government must support them when they face failure, even if it costs taxpayers trillions of dollars.
"Even if banks fail due to their recklessness, which caused the Great Recession of 2008, government must not prevent their risky investments because that would be an intrusion of the great American free enterprise system," say the GOP candidates for the Presidency,
In summary, "If their ventures fail to pay off, such as investments in sub-prime mortgages, the large banks should be first in line for government assistance in the form of a bailout," states the GOP document.
The statement continues, The moral hazard created by "too big to fail" may create a situation in which the pensions or portfolios owned by many millions of households (widows, children, retirees) will suffer large losses, as occurred in 2008, while major banks are bailed out. That's too bad. But that is simply a price to be paid for de-regulation of banks for the sake of freedom. God Bless the United States of America," concludes the document written for the GOP hopefuls by Citibank, Bank of America and JPMorgan-Chase.
Of interest is the following list of top lobbying contributions, the vast bulk of which goes to the GOP:
American Bankers Assn $9,043,000
Wells Fargo $6,400,000
JPMorgan Chase & Co $6,280,000
Citigroup Inc $5,340,000
Independent Community Bankers of America $4,620,000