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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (48890)	1/4/2012 2:13:43 PM
From: Peter Dierks	2 Recommendations Read Replies (1) \| Respond to of 71588

"They can't say it more directly because it's moronic." So I am a moron? Retail banking and investment banking are not similar business models. To say they can't exist in the same corporate umbrella would be like saying GE Capital should be stripped from NBC and the rest of the businesses. However to have one business in which funds move freely between the two is dangerous. IMHO that is the heart of the problem. WaMu bought Prudential Bache for the securities arm, the retail banking was a secondary considerations in the purchase. So lumping them in with Countrywide doesn't fit. I don't know what percentage of the combined business was investment banking, but it was being pushed. Maybe I am just pushing an idea because it was traditional. However you may wish to know that I thought about it quite a bit. Repealing the prohibition always struck me as a potentially bad idea.

To: TimF who wrote (48890)	1/5/2012 10:07:42 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 71588

Europe is re-establishing those traditional principles (separation of investment banking's risk taking from insured deposit-taking financial institutions) RIGHT NOW. Apparently the socialist-capitalist model of "heads we win and tails the taxpayer bails out the depositors to keep the entire economy from exploding when we fail" is NOT long-term really very viable. (At least not so long as many people are still alive who remember the LAST time that crony capitalist financial collapse after risk controls protecting taxpayers were removed.... Every couple of generations it seems that the lessons must be re-learned.)