Wall street Weapons of mass destruction back again.

They were called weapons of mass destruction! But that was back in 2008. Six years hence Wall Street seems to have found its lost love for derivatives. And the too big to fail banks are once again at the forefront of creating new toxic products. Names like JP Morgan and Goldman Sachs were associated with toxic instruments like CDOs post Lehman bankruptcy. It seems these firms have learnt no lesson and are back to their notorious tactics putting the global financial system at risk! As per Bloomberg, Goldman Sachs is planning as much as 10 billion Euros (US$ 13.4 billion) of structured investments that bundle debt into top-rated securities. J P Morgan Chase is offering a swap contract that makes it easier for investors to wager on the debt. Thus while the big banks are back to vetting investors' risk appetite, the regulators are hardly prepared to avert another 2008 like crash. One can only hope that Western central banks, including the US Fed, take the RBI's warning signals more seriously!