Banks Rule While The Rest Of Us Drool - Neil Barofsky

``First, the Wall Street Journal reports on ongoing tension between the banks and their primary regulator, the Federal Reserve, over the so-called stress tests. These tests are vitally important, among other things they determine how much of the banks' all important loss-absorbing capital can be frittered away through stock repurchases and dividends. While these payouts are undoubtedly a windfall for the stock-owning executives and shareholders, by definition they increase the risk of failure and eventual bailout. ''