The Fourteenth Banker Blog

April 16, 2010

Too Big To Fail

Filed under: Running Commentary — thefourteenthbanker @ 6:33 PM

I was flipping through Andrew Ross Sorkin’s book yesterday and saw a quote attributed to Ken Lewis that the “Broker/Dealer” model would not survive because they needed the funding base of a commercial bank.     Is that a Mea Culpa?    Is that basically saying that bank deposits would be used to fund Broker Dealer operations?     Or that Bank credit ratings might become necessary (also based to large extent on deposits and the capital base).    In either case, if capital or deposits are allocated to support the I-Bank, they are diverted from traditional banking.     (Unless someone can create them out of thin air)


1 Comment »

  1. All of the above!

    Comment by Per Kurowski — April 16, 2010 @ 7:10 PM | Reply

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