It will be okay, big guys. Investment banks will allow for the liquidity you supposedly so dearly fear losing. The market will adapt and the reduced risk in the U.S. financial system will restore confidence and integrity to the markets. The economy grew for decades under the Glass-Steagall Act. Would we really be upset to see that growth again–growth all can benefit from, not just traders?
Slamming the door on investors not only denies them a remedy; worse, it allows the Deutsche Banks of the world to avoid scrutiny, and you know where that ends. They will try it again and again knowing the courts have their back.
Lying to the government instead of actually doing the proper due diligence, handing out insured loans with no regard to the borrower’s ability to repay ; A Better symbol of the myopic corporate greed that plagued Wall Street for the past decade cannot be found. Imagine the thought process: “Will these borrowers be able to repay the loans?” “Heck, who cares, we’ll just have the government (taxpayers) insure them while we make a few hundred million in a week. ”