5 Comments

  1. Freedom Medium
    November 11, 2009 @ 6:00 pm

    Lehman and Bear Stearns were the two major failures that froze the credit markets and they were both stand-alone investment banks, not combos.

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  2. Sara McIntosh
    November 11, 2009 @ 7:01 pm

    If the other banks weren’t in trouble, why did they take taxpayers’ TARP bailout funds? Investment banking risks (and rewards) should not be underwritten, guaranteed or paid for by taxpayers–period.

    Lehman and Bear Stearns are just the stand-alone investment banks that the government let fail. They are not the only ones who were at risk of failing.

    I agree 100% with all of the points in the original article and would add that the only thing Glass Seagall failed to do was make sure that we also regulated the public accounting industry. We should especially hold them accountable for their failed audits of banks and other financial institutions that the American public is paying to bail out.

    Ciao for Now,

    Sara McIntosh

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  3. Sara McIntosh
    November 11, 2009 @ 7:03 pm

    Sorry about the typo on Glass-Steagall . . .

    Reply

  4. Freedom Medium
    November 11, 2009 @ 7:44 pm

    Other banks were facing billion dollar losses but Lehman & Bear were responsible for the complete freeze in the credit markets. The govt stepped in to save Bear by forcing a sale to JPMorgan for $2/share, but let Lehman fail.

    Companies like Goldman Sachs and JPMorgan didn’t want TARP money but it was forced on them by Treasury Sec. Hank Paulson to avoid giving the other institutions a “stigma” of receiving bailout money.

    The banking industry needs regulation watch dogs but the more power the federal govt gets over banks the more it becomes a “wolves watching the hen-house” situation.

    What needs regulation is the CDS market and financial terrorists at hedge funds like George Soros’s & John Paulson’s.

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  5. Three magic words for a Wall Street lobbyist: “innovation,” “complexity” and “liquidity” « CitizenVox
    November 15, 2013 @ 10:47 am

    […] say: “Wall Street behaved relatively well until 1999, when Congress repealed the 1933 Glass-Steagall law separating commercial and investment banking and […]

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