Well I left the 52 in my alias so you'd be able to find me.
further, your assertion in http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34237847 that it was really just the traditional banks, as v the (other) investment banks, who were 'deep into' the subprime 'mess' is false -- utterly flies in the face of the record of what has happened
When Glass Steagall was repealed it allowed the traditional banks to compete with the investment banks. Greenspan believed the firewalls in place to insulate the banking side from the investment side would work. Citi proved him wrong as we all now have witnessed.
Meanwhile the 5 investment banks now had to leverage their own money to compete with the traditional banks who had entered their turf. After all they had no deposits to play with. As we saw 3 of them gambled and lost. The remaining two GS and MS finally caved and asked to become a traditional bank so they could borrow from the Fed. I was surprised GS didn't make a play for Wachovia so they could pick up the deposit base.
The repeal of Glass Steagall voted overwhelmingly by Congress and signed into law by Clinton caused this mess.
Blame Alan all you want but he did not change the law all of himself. Only Congress and the president could do that.
Weill and Citi pushed for this and got plenty of help from Rubin. Reed who was at Citi and had saved them once before got kicked to the curb and Weill installed Prince as his heir apparent. Prince and Rubin then proceeded to over leverage their investment side.
We have been deregualting banks since Carter. Did you forget the S&L mess?
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