Unlike the rest of the U.S. securities industry, the firm controlled by $7.7 bln Leucadia isn’t barred from proprietary trading. So its quarterly results could offer some insight into just how much the Volcker Rule helps or hinders the likes of Goldman Sachs in volatile markets.
The firm’s quarterly results could offer some insight into just how much the Volcker Rule helps or hinders investment banks in volatile markets.
The Volcker Rule is meant to prevent banks from making certain risky bets
Submitted by Daniel Drew via Dark-Bid.com, After the carnage of the 2008 crash, former Federal Reserve Chairman Paul Volcker proposed a rule that would prevent banks from making short-term proprietary trades with financial instruments. Show More Summary
The CFTC wrote most of the rules in the Dodd-Frank Act under the leadership of its former chair Gary Gensler. He was aggressive in writing rules for the $450 trillion swaps market, even if it meant being opposed by fellow regulators...
Elizabeth Warren's concerns about trade deals undermining financial regulations get an unexpected confirmation from Canada.
The market's instincts are correct on this one. There is no reason to pile into GS stock right now.
Recent initiatives like the Volcker rule seek to restrict securities trading by banks. Using German data, this column shows that during the Global Crisis security-trading activities by banks in the secondary market crowded out lending to non-financial firms, but also acted as risk absorbers in the securities market. Show More Summary
Goldman Sachs's investments are testing the Volcker Rule. | The European Central Bank is expected to announce it will begin its bond-buying program. | Uber closes $1.6 billion in financing from clients of Goldman's private wealth arm. | Regulators address "too big to fail."
Goldman has found ways to put its money to work in formats that appear to comply with the Volcker Rule, but its investments have caused concern among some of its big clients.
The goal is to gut derivatives regulation and the Volcker Rule. The reasoning is as short-sided as it is inane
The House of Representatives just voted 271-154 to amend the Dodd-Frank financial regulation law, and in particular, to postpone implementation of the Volcker Rule. The House Financial Services Committee debated the proposed legislation for two hours last night and at least another hour this morning before voting. Show More Summary
The House defied a veto threat by President Obama and voted Wednesday to approve a two-year delay in implementing part of the so-called Volcker Rule, a key banking regulation enacted in the wake of the 2008 financial crisis.
Interestingly, Morgan Stanley has been expanding in the industry while sticking to the 3% limit laid out under the Volcker Rule for a bank’s use of its own money in any private fund. The investment bank is actually capitalizing on the...Show More Summary
Despite the fact that 35 House Democrats voted with Republicans to gut the Volcker Rule and other key parts of the Dodd-Frank Wall Street reform law, the bill failed. That's in large part thanks to Republican arrogance in assuming they could pass the bill quickly as a suspension. Show More Summary
It starts with “V” and ends in “R.” And, by the way, he’s not getting any younger, and wouldn’t mind seeing his handiwork in action before, you know, he can’t anymore. “It is striking that the world’s leading investment bankers, noted...Show More Summary
Submitted by Martin Armstrong via Armstrong Economics, What took place in Washington over the past two weeks with the repeal of Dodd Frank and then the effective repeal of the Volcker Rule sounds strikingly familiar to at least three previous periods in American History that led to total disaster. Show More Summary
``Banks added to their wins in Washington this month by getting a reprieve from the Volcker Rule that will let them hold onto billions of dollars in private-equity and hedge-fund investments for at least two more years.''
The banks' win on the Volcker Rule came just days after Congress passed legislation that gutted a regulation that focused on derivatives.
Goldman has already sold $2.55 billion it had in hedge funds to comply with the Volcker Rule, which bars banks from several types of investing and trading with their own money.