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View Diary: The Obama Administration Protection of Wall Street Criminals - A Possible Explanation (326 comments)

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  •  The Commodities Futures Modernization Act of 2000 (9+ / 0-)

    also helped to pave the way for the 2008 meltdown.   It deregulated derivatives, an investment that is nothing more than a bet on the performance of another investment.  Deregulation meant that firms could create new esoteric products that are difficult to understand, like a derivative of a derivative.  It was allowed because they were only going to be traded between sophisticated investors, like JPMorgan.  But when Chase, a commercial depository bank used by consumers, is bonded together into
    JPMorganChase, no matter how the bank segregates its funds, if JPMorgan goes under Chase is going with it.  
    Everyone's money was at risk.  

    "Democracy is a life; and involves continual struggle." ---'Fighting Bob' LaFollette

    by leftreborn on Thu Jan 24, 2013 at 08:07:49 AM PST

    [ Parent ]

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