>>which got an ok from the SEC to increase their leverage.
Agreed. But it isn't "deregulation" to give only the 5 largest investment banks (which were systemically important) an exemption to leverage rules governing all other banks -- that's regulatory corruption.
Also, the private i-banks levered up to 30-1, but fannie and freddie went to 130-1 (they may be actually be more leveraged now that they are under government control). And the Federal Reserve is levered over 55-1 today.
Agreed. But it isn't "deregulation" to give only the 5 largest investment banks (which were systemically important) an exemption to leverage rules governing all other banks -- that's regulatory corruption.
Also, the private i-banks levered up to 30-1, but fannie and freddie went to 130-1 (they may be actually be more leveraged now that they are under government control). And the Federal Reserve is levered over 55-1 today.