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To: Metacomet who wrote (106631)	1/17/2010 12:53:14 PM
From: Hawkmoon	Respond to of 116555

If I understand it correctly, the Glass-Steagall "chinese wall" was something peculiar to American banks. Part of the reason for wanting its repeal was to make US banks more competitive against European rivals. Same excuse they made in 2004 when the SEC permitted the top 5 investment banks to leverage up to 40:1. Thus, the question is how can we properly restrain the activities of US banks when the Europeans aren't restraining theirs? Or is that too simplistic an analogy? And doesn't the existence of Credit Default Swaps effectively circumvent Glass-Steagal. After all, CDS act just like insurance.. albeit unregulated insurance. Hawk