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Politics : American Presidential Politics and foreign affairs

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To: TimF who wrote (41609)	3/2/2010 1:38:25 PM
From: DuckTapeSunroof	Read Replies (1) of 71588

Separate the high risk activities from ALL RECOURSE to taxpayer-paid insured deposits. If an I-bank or other wants to gamble in a high risk game that's completely FINE... but DO NOT allow any failure deriving from such activities to EVER endanger the slow, stodgy (but economically systemically IMPORTANT) normal deposit-taking and lending operations! If the I-Bank has to cleave-off some subsidiary to do their risky prop. trading that A-OK with me. (The ONLY REASON they don't want to do that is that they want to maintain recourse to the financial strength of the parent I-Bank... which is strong exactly because of the taxpayer-insured deposit base. When they fail they want to get at that. And that is exactly what we need to prevent.) If some I-Bank doesn't want to cleave off prop. tradingn into a non-recourse subsidiary then that is FINE with me too! Just remove the taxpayer guarantee on their DEPOSITS and see how far they get.... :-)

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