... or at least, their retail operations hermetically sealed from their 'investment' banking activities.
And here's an illustration of why. In 2008, staid old Bank of America was bullied into buying the troubled investment house Merrill Lynch, as part of the emergency actions taken at that time. Needless to say, Merrill is stuffed to the gunwales with toxic waste, in the form of CDS liabilities etc. On the other hand, BoA, being a retail deposit taker, is covered by the Federal Deposit Insurance Corp, to protect its retail customers (just as individual depositors are protected by the government in this country).
So what does BoA propose to do ? Why, transfer the Merrill liabilities to the BoA itself, of course ! Thereby transferring billions of dollars of risk (or is it trillions?) onto the US Taxpayer. And it's even getting support for this scam from the Fed - though not from the FDIC, naturally enough.
So - good luck with that one, America.
Yes folks, we all know the score: bankers the world over will do whatever they are allowed to get away with - which certainly involves harnessing whatever security that is available from retail ops, to leverage their speculative dealings. Hopefully ... this brazen and blatant stroke by BoA will highlight the dangers and stiffen the resolve of our own banking authorities to carry through the rather half-hearted measures they have in mind.
Well - a man can hope, can't he ?