Tom Rants: Gramm and the subprime crisis: Tom Rants
KipEsquire
· 1 year ago
"J.P.Morgan, a commercial bank, to buy out the condemned company. Under Glass-Steagall, that simply wouldn't have been an option."
You can take that a further step back and note that the company itself, JPMorganChase, would have been impossible under Glass-Steagall (JPMorgan was an investment bank; Chase was a commercial bank).
tomhanna
· 1 year ago
True. And in the late 90s, Chase (through a couple of its subsidiaries) was one of the big players in subprime mortgages, so arguably it may have been the combination that gave the combined company the strength to weather the early storm.
All Comments
You can take that a further step back and note that the company itself, JPMorganChase, would have been impossible under Glass-Steagall (JPMorgan was an investment bank; Chase was a commercial bank).