When I talk to old investors they like to think that big brokers like Goldman Saks, citibank, merril lynch, and even morgan stanley are just to big collaspe. Even in a case of a rouge trader. The government will always bail them out or the FOMC. Is that true. And if something bad happens like a rouge trader or just a trade that goes extremely wrong, will the public have advanced warning?
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Would the public be warned of Impending Crash in Big Brokers and Banks or just the in
- Thread starter mahram
- Start date
yeah.
Quote from mahram:
When I talk to old investors they like to think that big brokers like Goldman Saks, citibank, merril lynch, and even morgan stanley are just to big collaspe. Even in a case of a rouge trader. The government will always bail them out or the FOMC. Is that true. And if something bad happens like a rouge trader or just a trade that goes extremely wrong, will the public have advanced warning?
sure. they will have a news conferance and tell everyone to bail before its too late.
It is funny you should mention Refco. I was meeting with my broker in Chicago a few weeks back and he said everybody knew Refco was going to implode.
Another long time trader in the business told me that you should never trade through a firm that is self clearing, apparently Refco was? I am not sure I never used Refco.
Another long time trader in the business told me that you should never trade through a firm that is self clearing, apparently Refco was? I am not sure I never used Refco.
.Quote from mahram:
When I talk to old investors they like to think that big brokers like Goldman Saks, citibank, merril lynch, and even morgan stanley are just to big collaspe. Even in a case of a rouge trader. The government will always bail them out or the FOMC. Is that true. And if something bad happens like a rouge trader or just a trade that goes extremely wrong, will the public have advanced warning?
Yes, the government would bail out the big banks if the risk was great enough. This includes Merrill Lynch, Goldman Sachs and in a crisis the FOMC (Federal Open Market Committee) would be sure to meet and be likely to drastically reduce the discount rate. It has happened before and I am sure it will happen again.
5yr