Up until 2003, all investment banks in US were allowed only 12 to 1 leverage. Then in 2004, the SEC basically gave 5 banks (and only 5 banks) the ability to lever up 30 or even 40 to 1.
Bet you can guess the names...
Bear Sterns, Lehman Brothers, Merrill Lynch, Morgan Stanley and Goldman Sachs.
3 down... 2 to go!
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