Obama speaks on proposed restrictions for banks on risky trading
InvestorFactor.Com : When speaking about recently bankrupt banks, the consumers are left to wonder about why seemingly strong banks are going belly up. For the outsider (the consumer), most of the banks are perceived very similar in how they are operating. We walk in the branch and if not the logo signs all over the place, we feel pretty much the same inside any bank. They all have similar APYs and APRs and are all having similar everyday usage charges. Only the sizes of banks is perhaps visible variable, which in the eyes of consumer determined by the total number of branches and offices and by the number of ATMs. So, why do we hear in the news that one bank is closing and/or is acquired by the other? Worth mentioning is that “size does not matter” in these events.
The latest initiative coming from White House may shed some light onto what may be actually happening “inside” some banks. It is not said in the open text, but the news is suggestive that some bankers, while “sitting” on clients’ money, are perhaps far from hesitating to, simply put, gamble with them. Apparently, some banks are losing more than others (or TO others) by engaging in risky trading of securities on the open market. … Continue Reading
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