Thursday, October 16, 2008

Lesson learn ?

Investment Bank debacle : Morgan Stanley, Goldman Sachs , Lehman Brothers etc ..

An analogy similiar to Utility (Conventional Banks) vs Casino ( Dealer / Broker - "WallStreet casino culture" )

Remedy : Two routes

Route 1 > separate utility from casino narrow banking prevents company relying on assets of unsophisticated customers as collateral of their highly sophisticated trading.

Route 2 > regulates casino sufficiently to ensure the failure so that they can not jeopardised the utility.

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