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Archive for the ‘proprietary trading’ Category

Amar Bhide Makes Case for Volcker Rule

Posted by Larry Doyle on February 20th, 2012 8:50 AM |

Why do you think former Fed chair and widely respected central banker Paul Volcker paid a visit the other day to SEC head Mary Schapiro?

I would gather that Mr. Volcker was not there merely to exchange pleasantries. No, clearly Mr. Volcker was exhorting Ms. Schapiro to withstand the pressure currently being applied by many members of the Wall Street-Washington Incest society to water down the Volcker Rule which would curtail proprietary trading on Wall Street. (more…)

Proprietary Trading Did Bring Down Wall Street

Posted by Larry Doyle on February 3rd, 2010 12:37 PM |

The Wall Street lobby in all its glory is fighting tooth and nail to defend its turf from the volley launched by former Fed Chair Paul Volcker. Recall that the newly designated Volcker Rule, if implemented, would disallow proprietary activities from those institutions taking consumer deposits. This implementation would effectively reinstitute the Glass-Steagall Act which was rescinded in 1999.

The proprietary activities most often highlighted by those in the banking community are investment and trading activity within private equity, hedge fund and prop trading desks. The banks are screaming that these activities should not and need not be separated from their overall operations because these activities did not cause our economic crisis. They would be correct on one hand, but how convenient that their definition of proprietary is not truly comprehensive. How so? (more…)

Mr. President, Are SIVs Considered Prop Trading?

Posted by Larry Doyle on January 22nd, 2010 8:09 AM |

Is President Obama’s proposal to rein in risk on Wall Street genuine or merely another Washington political ploy to curry favor with an enraged American electorate?

As with any proposal, the devil is always in the details. Initial pushback from Wall Street is strong but also informative. What is Wall Street highlighting? The large Wall Street banks are promoting the fact that proprietary trading operations do not encompass a large percentage of their overall business. In fact, JP Morgan already shut down an internal proprietary trading business in 2009.

I believe Wall Street will paint Obama’s proposal as an overreaching and aggressive intrusion into its business and free enterprise. What are we to make of all this? What exactly is Obama proposing? I’m not sure even he would know. The fact is, Obama’s proposal to curtail proprietary trading resides in defining exactly what proprietary trading encompasses. (more…)






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