shut it down and let the cards fall as they may? Is that not what will happen anyway?

Retail banking, the type of banking that serves the majority of people. As opposed to investment/commerical banking.

Private Banker 

What do you define as Bank Operations? I worked for one of the two mentioned here and would happy to clarify for you.

wldman 

shut it down and let the cards fall as they may? Is that not what will happen anyway?

Blasphemy!! How DARE you, sir!

Mike

I keep hearing that it's never been done before.... one way to pay the chinese though, no doubt.. It's going to destroy the vast majority of people's lives though, bye bye middle class

Big Mike 

I guess one way to avoid QE4, QE5, QE6 ... is to make QE3 live forever and ever until everything is right in the world. Mike

that was how Capitalist economic systems where supposed to work. PB you can not seriously make a case for GS or JP reclassification...certainly not for it still being that way. I do not think some of those players where given a choice but the reclassification is a typical screw job on the taxpayer.

syxforex 

Retail banking, the type of banking that serves the majority of people. As opposed to investment/commerical banking.

OK, thanks. So retail banking is the only form of banking that exists? Both firms take client deposits, provide FDIC insurance on checking and certificate of deposit accounts, extend mortgage loans and lines of credit, provide unsecured lines of credit and collateralized lines of credit against securities, commercial real estate, yachts, fine art/numismatics, etc.

Commercial banking is also an extremely part of the banking system. It's not just securities based as I'm sure you know.

Capitalism is just the concept of private property rights, most modern democratic economies are based on this principal right. There is not just one type of capitalism, however..

wldman 

that was how Capitalist economic systems where supposed to work. PB you can not seriously make a case for GS or JP reclassification...certainly not for it still being that way. I do not think some of those players where given a choice but the reclassification is a typical screw job on the taxpayer.

Yes, indeed, I'm not an expert on US financial regulation, but it was my understanding that the back door to the fed was originally put in place as a mechanism to protect the private banking system as directly related to the general public. A means to ensure liquidity and prevent bank deposits from bank runs in times of crisis.

Since Glass-Steagal the lines have blurred between what is commerical and investment banking where the two were once quite distinct. Especially in the past ten years or so. But when we look at a company like Goldman or Morgan that makes 90% of it's profits from broking and trading, we can see that they really don't belong on the back door program designed to protect the public banking system.

Private Banker 

OK, thanks. So retail banking is the only form of banking that exists? Both firms take client deposits, provide FDIC insurance on checking and certificate of deposit accounts, extend mortgage loans and lines of credit, provide unsecured lines of credit and collateralized lines of credit against securities, commercial real estate, yachts, fine art/numismatics, etc. Commercial banking is also an extremely part of the banking system. It's not just securities based as I'm sure you know.

syxforex 

Since Glass-Steagal the lines have blurred between what is commerical and investment banking where the two were once quite distinct. Especially in the past ten years or so. But when we look at a company like Goldman or Morgan that makes 90% of it's profits from broking and trading, we can see that they really don't belong on the back door program designed to protect the public banking system.

That's an excellent point! Very well said!

One of my concerns is of the free money Goldman is able to get from the fed to go out and innovate with opaque derivative products, how much of this are they able to transfer to their clients. If people knew how a trading house operates, what they really do, and how they are getting screwed, honestly, there would be riots... The American Citizen would freak out if they knew how it works...