What kind of crap is this? Volcker has long
been against universal banking.
The world has had universal banking for
over 1,000 years dating back at
least to the heyday of Venice. Stripping
out investment banking from US
banks will over time reduce their
profitability unless they raise fees very
substantially. It will leave US banks at a
sizable competitive disadvantage
to other major banks around the globe, all
of which have investment and
merchant banking operations. And, Volcker
is full of crap on this himself.
Glass - Steagall did not prevent the need
to bail out big banks over 1980 - 82,
and of the 90 plus banks that have gone
down this year in the US almost
none had investment bank arms save for
Wachovia. Volcker's little
recipe did not save the S&Ls in the
early 1990s either, and I could go on.
Obama just gave the big boys quite a
haircut as well and the Gov has been
roughing them up via TARP for months. Bonus
comp. plans will be controlled
and regulators will be empowered to snoop
through everyone's undies at
banks for years to come.
Study up, Maxman...
PR
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