Letters to the Editor
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"Bank"... what's in a name?
Bear Stearns, as I understand it, is not a bank in that they are not regulated in the same way "banks" are. Specifically, banks are required to have deposit insurance--Bear Stearns wasn't.
Also, banks have the ability to borrow at the Fed discount window rate, which as we've seen is getting lower all the time. A bank like Citi would therefor have a significant advantage over Bear in the event of a similar meltdown.
One likely regulatory change to come out of this mess is that financial institutions will be required to carry deposit insurance based on the services they provide, not whether they choose to call themselves a bank.