Comment Text:
This is a terrible, insidious idea.
The demise of MF Global illustrates how customers can lose their life savings at the expense of well meaning brokers who use these funds in ways that the customers can not fathom.
The repeal of Glass Steagall was the banking equivalent of this proposal. Now Aunt Ellen's bank account is co mingled with derivatives from insolvent government entities. While it is true that these accounts are backed by government entities, the risk from such ventures should be backed by the investors that stand to gain (or lose) from such leveraged investments.
I cannot imagine why this proposal is even being considered.
