http://www.zerohedge.com/article/democrats-push-reinstatement-glass-steagal

12/8/2009 12:56:20 AM

Glass steagal was dumb. No bank taking advantage of the repeal felll into trouble. No similar law exists in Canada, which escaped the whole ordeal. But most importantly, there is no known mechanism for such a law to help stabilize anything. More likely, it would destabilize by preventing mergers, emergency and otherwise.

12/8/2009 2:46:11 AM

you're right - CitiCorp is doing just fine and dandy now and didn't help cause, or suffer, from the financial melt down

12/8/2009 9:55:15 AM

if the banks had been allowed to fail instead of given money to consolidate, this wouldn't be a problem.

12/8/2009 10:08:58 AM

^^ My bad, I was just quoting what I had heard from people I trust (I may be remembering incorrectly or the statement was made before more recent events). Either way, the rest of my assertions hold: it is a law that exists no where else, and it is those places that avoided the fiasco, and it is a law that would have made dealing with the fiasco more difficult, and in no known way could have helped prevent it. If Citibank had been kept two entities, one investment and one commercial, both entities would have still been bankrupt, just one of them less so.

12/8/2009 10:54:13 AM

It exists nowhere else?

In no similar form?

Sorry, I just kinda find it hard to believe that we're the only country in the world to have forced a separation.

[Edited on December 8, 2009 at 10:56 AM. Reason : /]

12/8/2009 10:56:38 AM

So I remember being told by an economist from GMU.

12/8/2009 1:49:58 PM