F. George McDuffee wrote:
On Mon, 19 Apr 2010 15:08:00 -0700, Gunner Asch
wrote:
snip
John Carroll's observations that we must enact a new "super"
Glass-Steagall, and require that derivatives including "synthetic
collateralize debt obligations" such as Abacus, are both closely
regulated and traded only on specialty exchanges with publicly
accessible records, including prices and parties, appears to be
exactly correct, if we are to avoid another financial meltdown in
a few years. I would add "small enough to fail" caps on both
market share and capitalization and "fire walls" between firms
are also required, if future taxpayer rescue of private firms is
to be avoided or at least minimized. The result desired is not
that they won't do it -- the result desired is they *CAN'T* do
it.

That's right and the big driver will be that it will end up being bad for
business if they do. Sales will collapse.
That it is illegal is almost secondary. Whatever legislation ends up being
passed, the best lawyers on Wall Street will be finding ways around it the
same way thieves set about defeating ever better locks.

That is how good laws really work.

--
John R. Carroll