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 Kevin J Timothy 5 years ago
What is the difference between a money market account and high yield savings account?
by Gary Anderson 8 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 say it doesn't go far enough, but at least it is an attempt to keep insured...
by pgrundy 9 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 this is $500 billion and it could easily run into the trillions of dollars. We...
by Castlepaloma 3 years ago
If you think this government is working. Please explain to anyone why the average person earns less wages today, than 35 years ago? Why is the cost of living gone up ten times? Most people do not like their jobs or find it unsustainable along with housing and dealt. It gets worst, by the time...
by Kathryn L Hill 3 years ago
Big finance benefits the few instead of the many, but its not supposed to. Government has and does step in in many ways contributing to the problem.In so doing it has and does restrict free market capitalism. Wall Street is not the villain. The drug, POWER, is.And many individuals in Wall Street...
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