Investment Banking Implosion: A New Era of Stupidity
If you’re thinking of perusing the financial news Monday morning, take a stiff drink instead.
That’s what the e-bags who regulate the securities industry do first thing in the morning. And then another little nip for brunch, and why not a wee sprinkle before lunch?
Feature the new bank holding company structure for Morgan Stanley and Goldman Sachs.
In 1933, while the crash of ‘29 was still being digested, the regulators devised the Glass-Steagall Act, which separated commercial banks and investment banks to reduce the likelihood of further conflicts of interest.
Over the last ten years, or maybe eight, the regulators rolled over like a two dollar whore and allowed commercial banks and I-banks to hop back in bed together.
And now, it looks like they’re essentially making it official. Except most of the competition has been destroyed.
What’s the scariest thing about the new holding company deal, aside from the cost? It’s the brain child of same fuc*ing idiots who sat back and watched slack-jawed as the current series of subprime induced debacles took place.
Like I keep saying, it’s the American Way.
Photo with permission of Bay Area photographer Steve Kesten.
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