Last I knew this was already done at banks.. isn't that the difference between a regular savings account and a riskier money MARKET account?obviousaly the money market account gives a higher return for the risk of lending to the market , than an lower yielding regular account used to fund business and car loans, etc. Is this right or am I missing something? How is this anything new? regular accounts have always been insured by FDIC and money market wasn't I thought!?$% wasn't there always inherewnt risk in money market accounts which are not insured against loss?
The term "Wall Street Casino" is being used in the press lately to describe the common practice by banks of using deposits and borrowed funds for investing on Wall Street for their own account. As we have seen over the last several years, when they win they win, but when they loose the government has to bail them out.
At the least make them call in all callable bonds and pay down d true debt b4 allowing to buy their own stock on the market. So in other words they're using regular insured deposits to put on the books and use in the market.. Weren't the insured deposits already part of Tier 1 reserve capital to begin with? How were they ever used on the market? if they were putting under different capital why aren't hancuffs and jail terms being handed out. I thought this was already illegal? So i opted out of making extra money in the riskier but higher yielding MM acount , got paid less return , even though my money was being used money market anyway.
Sounds like this is more than just a "shorting" issue and subprime toxic assett downturn.. Its looking more like blatant" bank fraud" from the beginning!
..or all 3 of the above...
Wonder if this was the reason the Fed would not give out the info on the "Bloomberg" FOIA request , because the CEO's of the banks that received the money to back up their "fraudulent bets using insured deposits" would be the ones with the "jailbird" sign on their forehead?... hmmmmm....starting to see this a bit more clearly for what it really is.
This whole time I thought it was ppl bankrupting on their mortgage obligations and day traders and bad underwriters at banks.
by Gary Anderson7 years ago
Investment banks leverage up casino-like. When they fail, they put in jeopardy the commercial banks and you, Joe taxpayer, have to come to their rescue. Obama wants to stop that by implementing the Volcker Plan. Some...
by pgrundy8 years ago
This weekend Henry Paulson, Ben Bernanke, and Congress are going to hammer out a way for the US to buy up the bad mortgage debt that is causing turmoil in the markets. The most conservative estimate of the cost of doing...
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