Blumberg Capital Partners was featured on GlobeSt.com today with a piece titled "Commentary with Blumberg Capital Partners' Philip F. Blumberg" expounding on the question posed of readers last week asking if Obama's new financial plan would hamper the industry. An excerpt:
"If the Obama Administration is moving to reinstate Glass-Steagall, that's a good thing. It would allow imprudent risk disease to be limited to investment banks, rather than commercial banks, in which there is public trust and government support already. If investment banks have a problem, they should take it on the chin. They're big boys. But when commercial banks have a problem, we take it on the chin. And that's not right. So Glass-Steagall's reenactment is absolutely correct.
If they return to the more traditional bank model, the next logical step is to no longer have this nonsense of no mark to market. When you no longer mark to market, what you're saying is you no longer have to be candid and truthful about the quality of your assets. Now if you use those words, who would say that's a good idea? Nobody."
To read the full article, click here.
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