The real problem isn't banks, it's investors

When Mark Zuckerberg announced on the Oprah Winfrey TV show that he was giving a $100m (£62m) grant to disadvantaged schools in Newark, New Jersey, he was accused of turning to charity to improve his image. His image, especially in the light of the Social Network film about his life, was the focus of attention.

There was little discussion of his meagre cash pile and how the donation would be in Facebook shares. Because while the 26-year-old internet tycoon is estimated to be worth $6.9bn, he is a paper billionaire.

The phenomenon that is Facebook is expected to float in 2012. Until that time Newark schools will need to sell the company's shares on the fast-growing market in private shares.

Some estimates put the buying and selling of unlisted privately held shares in the US at the same level as trading in listed shares. In other words, the highly regulated and taxed public markets on the New York Stock Exchange and Nasdaq are being superceded by largely unregulated and lightly taxed private markets.

http://www.guardian.co.uk/business/2010/nov/01/investors-are-the-problem-not-banks

Pressure for shady deals legally - or let banks offer
Shady deals legally.

Everybody loves free money IF they can get away with it.

Seems to be on a way out idea. But if one thinks about it, someone has to be behind the money. If the funds were to loose money, then they wouldn't be back in the merry go round.

The regulations set the playing field, but the funds seem to be able to take a position and presumably win. If they were now to be burned, then the next bubble would disappear. It would then be on to the next bubble.