Jeffrey A. Miller

Want to Reform Wall St.? Bring Back Partnership Investment Banks

I wholeheartedly endorse this concept.

To Ricard: it was NOT naive for the companies to go public it was smart! Look at the outcome. The managers sold their ownership for tremendous profits and then proceeded to use the public money (e.g., stockholders) to earn huge bonuses and salaries. What's not to like - if you were an insider. To the public that bought those shares? Caveat Emptor.

To savagecapital: there is a distinction between "Wall Street" (e.g., investment banks) and the large commercial banks (e.g., Citi, BofA etc.)

To CautiousInvestor: anytime a rules based situation is created (as opposed to an outcomes based situation) the big money will hire the smart poeple to game the rules. That's just reality.

As for commercial banks that are "too big to fail" I believe that if any private institution (or semi-private as in Fannie / Freddie) is deemed "too big to fail" then they are "too big" period and need to be split up. It should be obvious that under any so-called free market system if there are no regulations or limitations then the ulitmate outcome is a series of sector monopolies. That is, the strongest will prevail and ultimately own it all.

The key for a responsible capitalist is where to draw the lines?