Ad Majorem.....Wealth Builders
From MoneyNews by Michael Kling | March 21 2013
The proposal to cut up to small pieces of too big to fail banks may be done out of revenge (or a escape goat) according to Rodriguez Valladares, managing of principal of MRV Associates. The New York based firm trains bank examiners and executives
The other parts of financial system: securities firm, regulators, insurance companies, hedge funds can contribute to the stability.
The cutting off banks from investment banking activity can lessen the risk. The combination makes investment banks overly agressive because of assumed FDIC (govt)guarantee.
The downside of the cutting to pieces (just what they did to Oil Companies as part of compliance with Anti Trust Laws) are: more unemployment, higher cost of funds, more regulators needed to handle more banking units.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment