"Investment banks" were only colloquially banks. They were not members of the Federal Reserve, not regulated by the Office of the Comptroller of the Currency, a

"Investment banks" were only colloquially banks. They were not members of the Federal Reserve, not regulated by the Office of the Comptroller of the Currency, and not FDIC insured. Survivors became banks after the crisis, but in their place we now have lots of hedge funds, private equity funds, etc. that have grown large to do similar financial operations without bank regulation. https://en.wikipedia.org/wiki/Shadow_banking_system https://en.wikipedia.org/wiki/Shadow_banking_system