I have to disagree, I didn't agree with the creation of non-commerical banks like Merrill Lynch, Lehman's etc. Canada has had these in place for many decades, and have had no issues. The non-commercial entities are under similar regs as the commercial. Trade Pro Broker is right, the Government created the playing field., and rules didn't apply. Grahman is a culprit in this, but these Companies could have operated by not U/W loans that didn't make sense. Point is they wouldn't have if they thought their $$$ were at risk. Nor did they make these loans prior. When your told to play a game and you can't lose, you'll win a million bucks, everyone is going to play, which is what happened. The problem is each Co. didn't see the systematic risk that was happening, which is why Greenspan, Shelby, McCain all were pointing out to the Dem Congress that there was a systematic issue here that needed address in 2002-2005 timeframe. You saw Barny Frank's response. Retarded.