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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: NOW who wrote (137690)12/7/2001 3:56:56 PM
From: patron_anejo_por_favor   of 436258
 
C&I lending continues to flatline:

stls.frb.org

Banksters are no fools (err, well, other than the ones lending more to Enron). They've turned the business from one of risk-assessment and risk-assumption into one of selling services, and laying risk off to undercapitalized entities. This of course massively increases systemic risk, but HO HO HO! That never shows up on a corporate balance sheet or income statement. Thus it never worms its way into executive compensation packages.

When the inevitable blow ups occur, banksters by and large (with a few notable exceptions) will dodge the bullet, provided they've kept residual holdings from their securitization schemes to a minimum. The rest of the financial services industry (particularly banks with large credit insurance activity) won't be so lucky...and of course, either will J4P.
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