UK repealing glass-seagul

Discussion in 'Wall St. News' started by Rumblefish, Jun 17, 2011.

  1. Rumblefish

    Rumblefish Guest

    This is one of the most important developments in UK financial markets.

    No wonder volume has been drying up.

    what had happened in the last 10 years was bank been using money from retail depositors and using clients money for speculations in stocks etc and risky derivative and lost in the scam casino so bank went bankrupt.

    the fact is that retail loan managers will not lend money to people to buy stocks and especially noway for derivatives that have no market. why? because stocks are paper and intangible..too much risk. as for derivative it's even less intangible over the counter. the value of these derivative based on other derivative. or house of cards shell game. going on.

    the derivatives were like casino chips issued by the casino, now what happens if the casino shuts down? or market maker bails, those chips have no market. in other words worthless casino chips.
    cannot cashout the casino chips since the casino closed and went bankrupt.

    banking industry lobbied Clinton to change the repeal the glass-seagall act in 1998/1999 banks back then said they had license to print money.

    Is the US have the political will to change?