2016 Postmortem
In reply to the discussion: Hillary Clinton opposes breaking up the megabanks, opposes reinstating Glass-Steagall [View all]Rilgin
(787 posts)Deposits become bank assets. Depositors are unsecurrd creditors of banks. I am sure that everyone reading this thread could determine that we were discussing capital of the bank obtained through deposits rather than profit.
If the bank loses money so that their assets including assets coming from deposits are less than their liabilities including to depoaitors, this is a problem and ia what Glass Steagall and the other banking laws and regulations were meant to prevent or leasen the chance of occurring.
HOWEVER YOU KNEW THAT WAS WHAT I MEANT WHEN I USED THE TERM.
Btw, it has been over 20 years since i was a banking lawyer but i think that was a term we used then. Regardless, back then I worked on projects for Chase related to early stagea of deregulation and later worked at a firm that repreaented the FDIC. So unlike you i was at one time an expert on banking regulation and Glass Steagall. The primary princpal of banking regulation up till derugulation was keeping risk out of banks who took deposits or to put it in real plain english to prevent banks from gambling with your or the public money.
Now you can continue to avoid and dodge . I am sure i made a typo you could pick on. Or you can actually try to understand the basis of bank regulation after the great depression