Glass-Steagall

Enrique Diaz-Alvarez enrique at anise.ee.cornell.edu
Sun Nov 7 09:11:07 PST 1999


Jordan Hayes wrote:


> > Not only FDIC will not be abolished, the mergers will extend it
> > to investment banks, thus making the implicit taxpayer guarantee
> > of every major and midsize financial institution explicit.
>
> I think that's unlikely; the investment community already has SIPC.
>
> /jordan

What I had in mind was Bank One merging with Goldman Sachs, say, then the ball falling on red when GS has bet the house on black, thus activating an FDIC bailout of the whole structure.

Enrique



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