Sheer Stupidity and Greed: Deregulating the Banks

The financial crisis of 2008 resulted in the establishment of new rules for banks–to help protect against another crash.

Now, those rules are being loosened…as we’re in possibly the worst financial crisis since the Great Depression.

The changes, set to take effect on Oct. 1, will make it easier for big banks to devote more of their resources to investments in venture capital funds and other vehicles—the kind risky of speculation that sent the entire U.S. financial system into a tailspin in 2008.

Regulators on Thursday also eliminated a requirement that banks set aside a certain amount of financial cushion to protect against trading losses. The rollback could free up tens of billions of dollars for Wall Street banks.

Common Dreams

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