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That is what I worry about. Not the "pure" investment banks, but the vertically integrated banking conglomerates. We've seen what the GS/MS business model did to Northern Rock, which used to be an unassuming Newcastle building society with a solid charitable track record before Gordo allowed the building societies to demutualise and float on the stock market.

We have met the enemy, and he is us — Pogo
by Migeru (migeru at eurotrib dot com) on Thu Nov 8th, 2007 at 11:08:53 AM EST
[ Parent ]
It not only carried on the solid charitable track record but the silver lining in its manic post demutualisation form has been that the "success" overflowed (trickled down?) through the NR foundation to the extent that it became one of the largest charitable donors around.

In fact the NR Foundation has quite an interesting position in any solution, because although they "only" got 5% of the profits, they are entitled upon a takeover to 15% of the votes (I think that's how it works).

Uncanny echoes here of the Barings fiasco and the resulting demise of much of the Baring Foundation's "wealth".

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Thu Nov 8th, 2007 at 11:27:43 AM EST
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