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An attribute of financial center banks that are too big to fail, as the Federal Reserve Board likes to call them, is that they do business on a global scale. Citigroup, for example, arranges financing for public works in Dubai; JPMorgan Chase has clients in India; Bank of America has joint ventures with construction banks in China. All three banks continued to do such overseas business even after they received federal bailout funds from the TARP fund. A House committee held hearings to ask the Treasury Department why such banking is still permitted. NBC's Lisa Myers gave us the answer from Neel Kashkari, TARP's manager: "These financial institutions are global institutions and they take deposits from savers all around the world."
NBC's Myers was not convinced. She pointed out that Dubai and India and China were getting funds "while some American companies were struggling to get loans." Maybe Myers was suggesting that these banks should be nationalized in the other meaning of that word--not government owned but trade protectionist.
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