Bruce Nunnally Posted October 19, 2008 Report Share Posted October 19, 2008 Business Week has a summary up in an attempt to explain who is responsible for the financial meltdown. Investment banks started taking more risks. They created new financial vehicles which were not well understood. Financial credit rating services rated the new vehicles well even though they were not good investments. The regulations changed during the Clinton administration to allow commercial banks to act more like investment banks. This drove the investment banks to take even greater risks in an attempt to survive. Investment Bankers were paid huge salaries, based on the huge risks they were taking and that were working out well. This encouraged them to take more risks. As the problems escalated, no one pointed out that there was a crisis until everything went off the tracks. Bruce 2016 Cadillac ATS-V gray/black Follow me on: Twitter Instagram Youtube Link to comment Share on other sites More sharing options...
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