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Why? I am not disagreeing, I simply know very little about the financial industry. But it seems to me if your going to say it's one of the stupidest deregulati
by vanattab 5y ago
Why? I am not disagreeing, I simply know very little about the financial industry. But it seems to me if your going to say it's one of the stupidest deregulation rules ever you should have some reasons as to why.
- dsr_ 5y agoThe obvious one is that you can ignore the complete text of the Act and see that there were no nationwide investment banking emergencies from the time of its enaction through to the removal. The closest that happened was the Long-Term Capital Management hedge fund collapse, which was not run by an investment bank. That failure is on the SEC. And in the 20ish years since, we got the Great Recession. G-S was pretty simple in scope: commercial banks could not be investment banks. Commercial banks are stable and boring and have low but predictable profits. Investment banks are either stable and small with low profits or wildly exciting with high variability, and the stable ones get purchased by the exciting ones in boom years.