Elizabeth Warren : split "too big to fail" into (1) traditional & (2) risky investment
Amen ! This split will lead to (1) the conservative traditional banking and (2) the risky investment banking. The risky investment banks will likely be in trouble because of their high leverages. The risky investment banks will unlikely obtain government bailout as in the last financial crisis as they are just casino gamblers.
weren't 2 of those risky banks converted overnight to a different classification in the 2008 crises to allow for a bailout anyways?? what the hell difference does it make??? split into 2 banks for "show"?? when the shtf they will make some kind of excuse to do it again!! it's all just blowing smoke!!
I like Liz Warren. I can't explain it. She is one of the only "LEFTIES" that I like. I guess it's because she hates the BIG BANKS and she despises Bernanke. Those are two concepts that we can all unite on!!
so simply allow the following fail: GS, BAC, C, and JPM. they have $227 T in risky derivatives on their books and when the free market (Ha) forces interest rates to advance, they will simply fail. Depending upon the counter parties to the trade. Barclays, UBS and RBS already in a world of hurt. Over $400 T worldwide in those risky insturments or 10 times world GDP! simply amazing!
Let the small and mid sized community backs thrive! The XLF will fall under $10 once again before the end of 2013. over $20 now but still well off the $40 high pre 2007 BANKING Crisis #1.