[lbo-talk] MS and GS become banks

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Sun Sep 21 20:25:14 PDT 2008



>> ... and then there were none!
>
> So the repeal of Glass-Steagall came to this: they all became
> commercial banks!

Ok, except: they "decided" to do this ... on a Sunday ... and the Fed okay'd it ... on a Sunday?

This is a huge concession: this means a teenager who has a car and smokes agreeing to a 7pm curfew on weekends.

What do they know that we don't? And: whose idea was it?

Theory 1: It was the Fed's idea, and MS/GS went along; they are unlikely to do this in any but the most awful circumstances, right?

Theory 2: This is just a way to get in under the umbrella of the $700B ... and the Fed said "Sure, get in out of the rain!" ... but aren't they already covered?

I'm bumfuzzled by this.

/jordan



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