Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (24592)	1/13/2010 6:21:42 PM
From: Wayners	1 Recommendation Read Replies (2) \| Respond to of 103300

I don't know what laws the UK, France, Germany etc. have to prevent commercial banks from making very risky investments in all types of derivaties. I do know that Glass Steagall protected commercial banks and commercial bank depositors from such nonsense. Yes investment banks would still have traded in CDSs and other derivatives but investment bank failures wouldn't have brought down commercial banks like we saw. Apart from Glass Steagall, the laws requiring commercial banks to make risky loans to those who don't qualify, yeah a big part of the disaster, but I wasn't really talking about that. Those bad loans repackaged as mortgage backed securities were then leveraged to casino levels though the investment banks and the derivatives on MBSs.