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And Still Nothing Has Changed in Banking



October 27, 2009 – Comments (3) | RELATED TICKERS: GS , JPM , MS

Not to be overly trite, but as the old saying goes: "The definition of insanity is doing the same things and expecting different results." I can't help but look at the recent results from the major banks and think that not a darn thing has changed. JPMorgan, Goldman Sachs, Morgan Stanley... reaping huge rewards from prop trading desks and nobody has any idea what they're actually doing behind closed doors.

Here's my latest rant on the situation on

Any thoughts from the community? Am I off my rocker or are the banks still playing with fire?


3 Comments – Post Your Own

#1) On October 28, 2009 at 9:59 AM, OneLegged (< 20) wrote:

They have been rewarded with very easy  (taxpayer)  money for taking these risks.   Maybe this is actuall part of their new short-term business model!?  They are operating in an arena where there is no downside to their decisions no matter how foolish those decisions may be..

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#2) On October 28, 2009 at 11:01 AM, leohaas (29.82) wrote:

Matt, you are not off your rocker.

What we need is regulation to break these "too-big-to-fail" institutions into smaller ones that are not too big to fail. It is not until then that the systemic risk these behemoths pose disappears.

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#3) On October 28, 2009 at 11:59 AM, AvianFlu (< 20) wrote:

Why should they change their modus operandi? It worked so well for them before! Nobody went out of business and the execs got big increases in their bonuses! Why would they change the winning game plan?

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