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Posts Tagged ‘what is the Volcker Rule’

The Volcker Rule: Comments and Questions

Posted by Larry Doyle on December 10th, 2013 6:02 AM |

The big news on Wall Street today is the reemergence of the Volcker Rule intended to make our banking system safer from the perils of proprietary trading activity.

The question that America will hear bandied about until it makes your head spin is “What exactly defines proprietary trading?”

My ‘sense on cents’ response is that not unlike pornography, proprietary trading might be hard to define but you know it when you see it. Let’s review and cross-examine The Wall Street Journal’s take on this newly proposed rule which attempts to accomplish the following: (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 This implementation would effectively reinstitute the Glass-Steagall Act which was rescinded in 1999.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…)






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