Volcker Rule Still Sitting in Limbo
Dodd-Frank, the Volcker Rule, and other bank regulations have been ongoing and increasing in the years after the great recession. Now we have a new communication from the Federal Reserve calling for the top eighteen large U.S. bank holding...Show More Summary
NEW YORK (Reuters) - Goldman Sachs Group Inc has slashed its capital pledges to investment funds by nearly half since the Volcker rule was signed into law in 2010, as it prepares its principal investment business for restrictions on investing its own m...
It's official. Goldman Sachs has inaugurated the second stage of Wall Street's development after Dodd-Frank and the Volcker Rule. The first post-reform stage was the transformation of proprietary trading units into market-making trading units. Before Volcker, Wall Street firms risked their own capital trading securities with counterparties. Show More Summary
There has much commentary (see this as a smart example) on the scathing Senate hearings on JPM and the London Whale last week. I wanted to take a moment to throw out a few ideas that relate to JPM’s embarrassing moment int he spotlight (again). The TBTF giant banks want to eat their cakes and have it, too. These publicly...Read More
``"JPMorgan's chief investment office increased risk by mislabeling the synthetic portfolio as a risk-reducing hedge when it was really involved in proprietary trading," said Senator John McCain of Arizona, the panel's top Republican. ''
The risky “London Whale” trading loss JP Morgan Chase reported last May was the result of a risky proprietary trade that should be banned by the Volcker Rule, a bipartisan Senate report alleged Thursday. The Volcker Rule would ban most proprietary trading, which is done with a bank’s own money only to turn profit, at [...]
A key issue in today’s Senate hearing on the J.P. Morgan London Whale trades is going to be the Volcker Rule.
More evidence the Dodd-Frank reform law was an exercise in futility as Reuters reports Goldman Sachs may have already found a work around. Under the new law investment banks such as Goldman Sachs are supposed to be prohibited from making risky private equity investments under the Volcker Rule. Show More Summary
The Volcker Rule — a part of the Dodd-Frank financial reform law that is meant to rein in risky bank trading — is on the verge of being delayed, again, as regulators squabble over its exact parameters. Wall Street banks and congressional Republicans, after successfully watering down the Volcker Rule when Dodd-Frank was being debated, [...]
Occupy the SEC has filed suit in the Eastern District of New York over the failure of the relevant financial regulators to issue a Final Rulemaking as stipulated in Dodd Frank.
Wells Fargo is the latest bank to ramp up new forms of risky trading in advance of the Volcker Rule, a regulation included in the 2010 Dodd-Frank Wall Street Reform Act meant to make banks safer by prohibiting certain types of trades that helped trigger the global financial crisis in 2009. The rule bans proprietary [...]
(Reuters) - When former Wells Fargo & Co Chief Executive Dick Kovacevich joined Norwest Bank in 1986, he had reservations about its private equity investments as he did not think it was the kind of business a bank needed to be in. He got over it.
Goldman seems to be succeeding in maintaining a balancing act while walking the regulatory tightrope, by also giving in to rules on quite a few instances. The bank has already closed down most of its proprietary trading units over the years.
U.S. banking regulators are likely to make some notable changes to rules governing banks' capital and ability to engage in proprietary trading as they push ahead to finalize the standards this year, Fed governor Daniel Tarullo said.
Your weekend reading in 20 words or less: Goldman finds a way past the Volcker Rule with a new credit fund — it’s being set up as a business-development company. — Matthew Goldstein and Emily Flitter, Reuters It costs money to move a fund from one index to another, but so far, Vanguard’s big shakeup [...]
By Felix Salmon: When JPMorgan’s (JPM) London Whale blew up, one part of the collateral damage was the publication of a detailed Volcker Rule. The Whale was gambling JPMorgan’s money, and wasn’t doing so on behalf of clients - yet somehow his actions were Volcker-compliant. Show More Summary
Goldman Sachs chief executive Lloyd Blankfein has said repeatedly that his bank would comply with the Volcker Rule, a new regulation from the Dodd-Frank Wall Street Reform Act meant to eliminate the most risky trades from banks that have the backing of the federal government and its taxpayers. Despite those promises, the bank has set [...]
A legislative exemption from Congress would be ideal at this point, just to cut through the confusion at the regulatory level.
Jess Sharp: The CFTC and the banking regulators led by the Fed have proposed margin rules that don’t align with one another.