Why? Because they still regulated the banks ... the regulators, unlike during Bush regime actually regulated their banks.

Clinton was for modernizing banking in U.S. as everyone at that time was worried about competition to Wall Street coming from big banks in Japan and rapidly proceeding modernization (particularly in terms of electronic trading) of the London financial markets. Many people, in and out of government in the 90's were concerned about Wall Street losing it's competitive advantage to these competitors. Clinton was for allowing INvestment banks and Commercial banks to combine but he expected that they would be regulated. He was naive in this beleif. But we now know, while intellectually very bright, Clinton was particulaly clueless when it came to what can be called 'Street smarts'.

Also, and this is a biggie, the banks in Canada were sensible enought to NOT GET INVOLVED WITH DERIVATIVES. The attitude of Canadian banks managers was, if they didn't understand them (Derivatives) they weren't going to risk money on them.

What U.S. could learn from Canada's banks (ranked the safest in the world) - REGULATE.


That notwithstanding, we should still put back in place the wall separating Commercial banks from investtment banking. We cannot be sure Republicans will get into power again to impair or stop regulators (by putting anti-regulation True-believers in control of regulating agencies) from doing their jobs.

Commercial banking should be done by sober individuals with a long term view and an in interest in banking - not gambling to make a quick buck. Keep those idiots out of the major economic function of providing cash to people and businesses with practical, productive economic objectives in mind when they are borrowing money. Bankers should be averse to risk, not seeking to make a 'killing' by taking on huge risks and pyramiding that risk by using excessive leverage on a throw of the dice. Anybody seduced by get rich quick schemes or by using massive leverage is NOT A BANKER. He's a confidence man. (basically different only in degree from Bernie Madoff).