Sunday, June 4, 2017

WE NEED GLASS-STEAGALL, AND WE NEED IT NOW – #TrishTheDish – Medium

WE NEED GLASS-STEAGALL, AND WE NEED IT NOW – #TrishTheDish – Medium: "The 2008 crisis was a direct outgrowth of Glass-Steagall’s repeal because it allowed investment banks to again put consumer savings on the line in its high-risk investment banking activity. And not only were they again engaging in casino-like gambling practices, reduced regulatory oversight made fraud the name of the game. The investment banks started packaging up the mortgage loans they’d made through the commercial banks and selling guarantees on those loans called Collateralized Mortgage Obligations (CMO’s), a type of derivative security in which a bunch of mortgages were bundled up together and included mostly high quality loans that were unlikely to default as well as some lower quality loans"



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