We have seen this before, when bad derivatives trades threatened Long-Term Capital Management, a few years before Glass Steagall was repealed and banks with FDI

We have seen this before, when bad derivatives trades threatened Long-Term Capital Management, a few years before Glass Steagall was repealed and banks with FDIC deposits were also allowed to take part in these sorts of risky financial activities. >NARRATOR: After four days, the Fed acted, but not directly. The Wall Street banks were pressured to bail out LTCM themselves. MICHAEL GREENBERGER: The government said, "It is our belief that your financial stability is in jeopardy. And the way to solve this problem is for you each to pony up $400 million and buy the fund, prevent it from collapsing, and try and work the thing out." ROGER LOWENSTEIN: Fourteen banks agree to put a few hundred million each, about $3.5 billion total. http://www.shoppbs.pbs.org/wgbh/pages/frontline//warning/etc/script.html http://www.shoppbs.pbs.org/wgbh/pages/frontline//warning/etc... https://en.wikipedia.org/wiki/Long-Term_Capital_Management https://en.wikipedia.org/wiki/Long-Term_Capital_Management