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First, I am delighted and a bit surprised that they are not handing over big loads of cash to anyone that promises to save SAAB. I am not advocating a particular action there, but the passive attitude in that case is clearly contrasted with the active attitude in the case of Carnegie.

And banks are special, but Carnegie was and is the typical kind of noxious bank that should be regulated away.

Carnegie Investment Bank - Wikipedia, the free encyclopedia

Carnegie Investment Bank AB is a Swedish company which specialises in stockbroking, investment banking and asset management.

Remember the crucial notion of the Glass-Steagall Act

In the nineteenth and early twentieth centuries, bankers and brokers were sometimes indistinguishable. Then, in the Great Depression after 1929, Congress examined the mixing of the "commercial" and "investment" banking industries that occurred in the 1920s. Hearings revealed conflicts of interest and fraud in some banking institutions' securities activities. A formidable barrier to the mixing of these activities was then set up by the Glass Steagall Act.

While stockholders were wiped out, did not managment by and large stay? As I remember it, the CEO was the only one who had to go and he was replaced by his right hand. So they saved the managment and the careers of the upper echelon in the company. Probably people they had good relations to as this was the go-to bank for privatisations.

Anyway, my critique was mainly centered on handling this crises in a way that did not show any realisation of the systematic problems. Thus, I do not think any such action should be expected during the swedish presidency.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Thu Aug 20th, 2009 at 03:28:12 PM EST
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