Having worked at a bank for a year I can certainly say, banks need the federal government just as much as the federal government needs the banks. The federal government (as well as state governments) frequently use banks as a low cost, low risk way to increase access to capital for those that need it, as well as of course controlling interest rates to then control the speed that the economy grows or shrinks
A well-regulated private banking industry allows the competing interests of a government and a private company to compliment eachother in ways that really only become apparent from directly working in the industry. The government provides grants and subsidies to allow small banks to provide access to capital that might not otherwise exist, competition with other banks forces banks to provide better services to customers and government regulations prevent banks from taking too much risk or doing too much harm, plus a strong government safetynet protecting bank customers from failure all come together to provide a surprisingly good system. I’m not saying private banks are perfect nor that its the best system one could dream up, but in a society that relies on capitalism as a method to limit access to resources, a well regulated private banking industry with strong competition (which we actually largely have!) is really good for consumers
Remember that shareholder primacy assures the banks will pressure the government to deregulate, eventually capturing regulatory departments, as has happened in the US (if not the whole developed world).
Marx explains this in Das Kapital even when there was a notion of social responsibility. But after Dodge v. Ford Motor Company in 1919, it was established by judicial ruling that publicly owned companies have interests in direct opposition to the public, and should not be allowed to influence government, which is meant to serve the interests of the public (and only the public).
Even in 1919, plutocrats had already been dismantling US democracy towards oligarchy. It had failed just as the Soviet Union was trying its hand at ur-communism (and being sabotaged by Wilson).
Having worked at a bank for a year I can certainly say, banks need the federal government just as much as the federal government needs the banks. The federal government (as well as state governments) frequently use banks as a low cost, low risk way to increase access to capital for those that need it, as well as of course controlling interest rates to then control the speed that the economy grows or shrinks
A well-regulated private banking industry allows the competing interests of a government and a private company to compliment eachother in ways that really only become apparent from directly working in the industry. The government provides grants and subsidies to allow small banks to provide access to capital that might not otherwise exist, competition with other banks forces banks to provide better services to customers and government regulations prevent banks from taking too much risk or doing too much harm, plus a strong government safetynet protecting bank customers from failure all come together to provide a surprisingly good system. I’m not saying private banks are perfect nor that its the best system one could dream up, but in a society that relies on capitalism as a method to limit access to resources, a well regulated private banking industry with strong competition (which we actually largely have!) is really good for consumers
A well-regulated private banking industry
Remember that shareholder primacy assures the banks will pressure the government to deregulate, eventually capturing regulatory departments, as has happened in the US (if not the whole developed world).
Marx explains this in Das Kapital even when there was a notion of social responsibility. But after Dodge v. Ford Motor Company in 1919, it was established by judicial ruling that publicly owned companies have interests in direct opposition to the public, and should not be allowed to influence government, which is meant to serve the interests of the public (and only the public).
Even in 1919, plutocrats had already been dismantling US democracy towards oligarchy. It had failed just as the Soviet Union was trying its hand at ur-communism (and being sabotaged by Wilson).