Originally Posted by texaspackerbacker
I don't really remember what the point of this was, but that logic would imply that investment banking--which they got into in 1906--isn't relevant also. They are--or still have been until recently, of course, into both.
I messed around with commodities in the late 70s and 80s, and the commissions, as with stocks, were brutal back then. A new generation of commodities brokers also has beat back the old-line companies in marketing commodities.
I think that Lehman Brothers is failing for that reason--and that they are using the current perceived mortgage crisis as an excuse to grab some government money. Paulson was just on for a press conference and said as much--that this is drastically different than the Fannie Mae and Freddie Mac bailout which in fact DID result from the downturn in real estate prices, and WAS necessary to keep the capital market healthy for mortgage financing.
Now, Howard, if you disagree with any of that, please be specific about what.
I'm a little bit bored with this, and am ready to get back to arguing politics--both more significant and more interesting.