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The repeal allowed banks and investment houses to be run under the same roof, changing the aggregate risk profile of financial institutions greatly, in the dire
by andrewprock 4y ago
The repeal allowed banks and investment houses to be run under the same roof, changing the aggregate risk profile of financial institutions greatly, in the direction of significantly higher, and now correlated risk.
- yyyk 4y agoOrdinary 'investment banks' were perfectly capable and allowed to hold securities under G&S, in fact they issued more than any 'same roof' banks had (and as the wiki cite in the other thread shows, there was little structural change following repeal).