What is the practical difference between banks dealing/underwriting in securities and them just buying them for themselves?
The Act prohibits banks from dealing and underwriting securities, but allows them to purchase and sell them for investment purposes. How is this not just a semantical difference involving legal gymnastics?
I’m not asking that question suggestively, I’m just curios what the significant differences are.
Also, did the artificial supply of credit cause an increase in derivative speculation? Was there more risk taken in derivatives than historically occurred leading up to the bust?
Thanks again for your time.