"For good reason: many large financial institutions were based on fraud." Where's the fraud in these investment banks? Maybe your referring to the brokers (in

"For good reason: many large financial institutions were based on fraud." Where's the fraud in these investment banks? Maybe your referring to the brokers (in the high street) who actually sold the subprimes to people buying houses? Maybe.. but that's certainly not investment banks. The article says: "and instead dealt only with hedge funds, insurance companies, and large financial institutions, so-called qualified buyers that, under SEC rules, are expected to understand the risks." They sold it to people who can understand these financial instruments. "because there really was nothing backing up their deposits." FDIC was backing up their deposits, well to 100K at least. "This will either have to be covered by punitive taxes for decades" The Treasury just didn't give them free money, they sold them warrants (AFAIK). The money is starting to come back in. The US Treasury just made $8B in profits from Citibank: http://goo.gl/rM9E http://goo.gl/rM9E