Regulating banks: A love hate relationship

When the government becomes a major shareholder in banks, we can expect regulations to decrease risk. The Volcker rule will limit bank investments. DC feels betrayed after banks payed back TARP, but still made profits and didn't lend. Too much responsibility is placed on banks to stimulate the economy. In this economy, banks don't anticipate a good return. They find other safe havens like treasury bonds. If DC feels this way, then they should also sneer at the Fed Bank which made record profits by making similar investments as banks as a way to crowd out the market. These asset purchases were intended to block banks from government bond investments and encourage them to lend. All done with a struggling economy that, when fixed, will provide enough incentive for banks to lend. DC needs to learn that when it comes to money, you have no friends.