Comments on: Are Citigroup's troubles evidence that Glass-Steagall repeal was a colossal mistake? http://curiouscapitalist.blogs.time.com/2008/12/02/are-citigroups-troubles-evidence-that-glass-steagall-repeal-was-a-colossal-mistake/ Commentary on the economy, the markets, and business Sat, 28 Nov 2009 19:11:37 +0000 http://wordpress.com/ hourly 1 By: banzai7 http://curiouscapitalist.blogs.time.com/2008/12/02/are-citigroups-troubles-evidence-that-glass-steagall-repeal-was-a-colossal-mistake/comment-page-1/#comment-12177 banzai7 Wed, 03 Dec 2008 00:30:01 +0000 http://timecuriouscapitalist.wordpress.com/?p=3324#comment-12177 The Twelve Wall Street Days of Christmas WilliamBanzai7 On the twelfth day of Christmas, What did Wall Street send to me ? Twelve doomsday drummers drumming, Eleven bailout pipers piping, Ten investment bankers a-leaping, Nine Russian ladies table dancing, Eight brokers a bilking, Seven hedge funds a skimming, Six quants hallucinating, Five overpaid CEOs a blinging, Four synthetic CDO turds stinking, Three red pens, Two free toaster Ov's, And a mortgage they said was interest free! The Twelve Wall Street Days of Christmas
WilliamBanzai7

On the twelfth day of Christmas,
What did Wall Street send to me ?

Twelve doomsday drummers drumming,
Eleven bailout pipers piping,
Ten investment bankers a-leaping,
Nine Russian ladies table dancing,
Eight brokers a bilking,
Seven hedge funds a skimming,
Six quants hallucinating,
Five overpaid CEOs a blinging,
Four synthetic CDO turds stinking,
Three red pens,
Two free toaster Ov's,
And a mortgage they said was interest free!

]]> By: plukasiak http://curiouscapitalist.blogs.time.com/2008/12/02/are-citigroups-troubles-evidence-that-glass-steagall-repeal-was-a-colossal-mistake/comment-page-1/#comment-12167 plukasiak Tue, 02 Dec 2008 16:38:43 +0000 http://timecuriouscapitalist.wordpress.com/?p=3324#comment-12167 the problem with the repeal of Glass-Steagall is two-fold 1) it left America with no "backup" available when the collapse that is inevitable in unregulated markets took place. It wouldn't matter much if the entire investment bank industry went under <b>IF</b> there was a separate and distinct ( and properly regulated) commercial banking industry which would have remained solid. 2) It transferred the risks taken by investment bankers to American taxpayers. The whole FDIC insurance concept was based on limiting the exposure of the US taxpayer by strictly regulating the level of risks that insured institutions could undertake. When a bank holding company goes under because of the risks taken by non-FDIC insured parts of that holding company, US taxpayers still foot the bill. the problem with the repeal of Glass-Steagall is two-fold

1) it left America with no "backup" available when the collapse that is inevitable in unregulated markets took place. It wouldn't matter much if the entire investment bank industry went under IF there was a separate and distinct ( and properly regulated) commercial banking industry which would have remained solid.

2) It transferred the risks taken by investment bankers to American taxpayers. The whole FDIC insurance concept was based on limiting the exposure of the US taxpayer by strictly regulating the level of risks that insured institutions could undertake. When a bank holding company goes under because of the risks taken by non-FDIC insured parts of that holding company, US taxpayers still foot the bill.

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