GerryB43

Is Curbing Bank Pay Socialist or Capitalist?

Before the 1999 dissolution of the barriers set up by the Glass Steagall act, banks were not allowed to take the kind of risk that brought down so many "too big to fail" institutions last year. Prior to that banks failed only when "disintermediation" was triggered by Fed action that produced an inverted yield curve. For the most part anyway. The "systemic" risks caused by the collapse of the derivatives market have been growing for nearly ten years and were completely predictable in magnitude if not in exact timing.