Glass-Steagall

Doug Henwood dhenwood at panix.com
Sun Nov 7 09:14:51 PST 1999


Enrique Diaz-Alvarez wrote:


>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.

We already effectively have that. The Fed thought it important to bail out Long-Term Capital Management, meaning that the safety net extends even to hedge funds.

Doug



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