Off-Topic: Banks need regulation

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	Name:	GoneFishin -
	Subject:	Banks need regulation
	Date:	1/24/2010 1:29:34 PM

The regualtions are tough because banks take your funds and play with them like a casino and then advertise for funds with we are FDIC insured. With the insurance comes tough regulations. As a successful businesman, I assume you expect your bank to be prudent with their use of the funds you deposit into your corporate checking account. After all, you are only insured for $100,000 for your checking account. Would you sleep better with less regulation for your bank knowing you may have uninsured funds deposited with them?

Martini, the Federal Reserve granted a request from Goldman Sachs and Morgan Stanley, the two remaining major investment banks in the US, to change their status to bank holding companies.

The move allowed both banks permanent access to emergency funding from the Fed but also means changed to the ways they are regulated.

The US central bank did extend its emergency lending facility to investment banks back in February, after the collapse of Bear Stearns, however investment banks were not granted the same terms as commercial banks, putting them at a disadvantage to the commercial banking sector.

The conversion to commercial bank status also allowed Goldman Sachs and Morgan Stanley to bolster their funding through deposits.