Real Risks in Big Banks’ ‘Merchant Banking’ ActivitiesBy
In a recent Deal Professor column, Steven Davidoff Solomon gives the Federal Reserve a symbolic “F” for failing to justify its recommendation that Congress repeal existing statutory provisions allowing big Wall Street banks to run in-house private equity funds.
Of course, if the Fed were writing an exam on a typical question of basic corporate law, then it might make sense to defer to a corporate law professor’s judgment on its merits. But this is a question of banking law. And, on a banking law exam, his critique of the Fed would not pass muster. Let me explain…
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