The only reason this is not OT is that it may effect the price of Intel stock:
"Real Estate brokerage business. This is in play in Congress"
I am not sure I understand your post, the bank can get into any business, any business seems to include the realestate brokerage business.
Citicorp has owned, is it coldwell banker, for 15 years. But prior to 1999, they had to own it which a "chinese wall", now they own it without the sham.
Just ONE of the reasons for Glass Steagall was that the stock market creates an alternative competitive source of capital for productive enterprise.
No one knows before hand what will turn out to be productive in the future, but if there is no competition for funds, then they get applied to things which are less productive, like homes.
When the government guarentee wears out, and the money runs out, interest rates go up and the value of the house plummets.
Of course, this hasn't happened since Glass Stegall was enacted in 1934,
BUT INTERESTINGLY ENOUGH THE LAST TIME IT HAPPENED WAS IN
FLORIDA,
and the banks were successful at that time also in blaming the speculators. |
