Kevin Roose writes: Times columnist Joe Nocera wrote that
after the fall of Lehman, “everything changed,” including our common attitude
toward debt and our willingness to address income inequality. But skeptical
critics like Dennis Kelleher, the CEO of advocacy group Better Markets, say
that Wall Street is much the same as it ever was, with big banks still engaging
in risky and unethical behavior with impunity, threatening the stability of the
U.S. economy. Both the
change-proclaimers and the cynics have arguments in their favor, so let's weigh
the evidence. Five ways the New Wall
Street is different:
1. Smaller, leaner banks. Since the end of 2006, AIG and the
five U.S. investment banks that compose the so-called "bulge bracket"
(Goldman Sachs, JPMorgan Chase, Citigroup, Bank of America, and Morgan Stanley)
have lost nearly $600 billion in market value....
2. No more prop trading. Before Lehman, most investment
banks were structured on the mullet model — a patina of old-fashioned business
in the front (an old-line M&A business and flow trading operation) and a
risky, lucrative party in the back (proprietary trading desks). The Volcker
Rule changed all that...
3. Muted celebrations…..
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