Julia Thompson <[EMAIL PROTECTED]>

> The general SEC requirement had been to limit it to 12X.  An exception was 
> made in 2004 for 5 companies - Goldman, Merrill, Lehman, Bear Stearns, and 
> Morgan Stanley.
> 
> And, since I know someone is going to yell, "Cite!", I will:
> 
> http://bigpicture.typepad.com/comments/2008/09/regulatory-exem.html

Nice link. Just to be clear, I want to point out that the reserve requirements
Dan mentioned are set by the Fed, which controls deposit-funded bank 
requirements.

The big investment banks ("broker-dealers") were not regulated by the Fed, 
but rather by the SEC, as you mention above.

Two completely different regulatory environments.


      

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