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Massive banks combining proprietary trading, retail banking, and investing should be dismantled.
Several hundred people should be prosecuted at a minimum.
That none of this has or will take place, is the root problem.
Massive banks combining proprietary trading, retail banking, and investing should be dismantled.
Agree. It's too much systemic risk. Heck, fractional-reserve banking carries enough systemic risk as it is, even w/o risky short-term trading.
We need Glass-Stegall back! It worked for 70 years. But then we thought we were smarter and didn't need it anymore.
We need Glass-Stegall back! It worked for 70 years. But then we thought we were smarter and didn't need it anymore.
Yeah, it got in the way of "financial innovation".
http://www.fool.com/investing/general/2012/07/30/why-buying-banks-is-a-horrible-idea.aspx?source=ihpsitth0000001
"What we need to do is to think about the root problem: Banks were incentivized to manipulate LIBOR. As it turns out, banks were incentivized to issue bad home loans. To take on extra market risk. To look the other way when money launderers came calling. So maybe the problem isn't just that bankers are greedy, but that the institution of banking is a place where being greedy is also heavily incentivized."