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**ChexEcodece** · 10-09-2008, 04:40 PM

Originally posted by Imran Siddiqui

Exactly the question a lot of Republicans are asking.

Of course the repeal of the GS act really had little to do with this and made the fall a LOT less worse than it could have been (imagine if commerical banks couldn't buy investment banks that were failing and vice versa). It allowed commercial banks to own derivatives. That's what it did. There has been an explosion of derivatives. That is the real problem here. It doesn't matter if it's easier for financial institutions to take each other over. That won't solve the problem. You will still have all these derivatives in the economy.

10-09-2008, 04:40 PM	#6
ChexEcodece Join Date Oct 2005 Posts 471 Senior Member	Originally posted by Imran Siddiqui Exactly the question a lot of Republicans are asking. Of course the repeal of the GS act really had little to do with this and made the fall a LOT less worse than it could have been (imagine if commerical banks couldn't buy investment banks that were failing and vice versa). It allowed commercial banks to own derivatives. That's what it did. There has been an explosion of derivatives. That is the real problem here. It doesn't matter if it's easier for financial institutions to take each other over. That won't solve the problem. You will still have all these derivatives in the economy.
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