Special Report on
The Volcker Rule
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Chairman of the President's Economic Recovery Advisory Board Paul Volcker listens during his testimony before the U.S. Senate Banking, Housing, and Urban Affairs Committee on Capitol Hill in Washington February 2, 2010. Credit: Reuters/Jim Young NEW YORK (Reuters) - In mid-January, a who's who of Wall Street gathered to hear Paul Volcker, the former Federal Reserve chairman whose role in the White House seemed at best unclear. Politics As the members of the Economic Club of New York tucked into their wild mushroom bisque and basil roasted chicken at the ornate Grand Hyatt ballroom in Midtown Manhattan, Volcker, 82, ...
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The Volcker Rule: Bank Lobbyists Fight To Change 'Must' To 'May'
As you may just have heard the devil is in the details. Or, in the case of the latest push to reform Wall Street, the devil is in whether or not the details will actually be mandatory. Bank lobbyists looking to weaken the Volcker Rule are targeting its language, Business Week reports. The financial reform bill unveiled by Senate Banking Committee Chairman Christopher Dodd (D - Conn.) last week includes a rule prohibiting commercial banks from owning or investing in hedge funds, private equity funds or proprietary trading operations. The mandate, one of two chief reforms proposed by former Fed Chair Paul Volcker, was revealed by ...
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For background, it’s clear that the White House nominally supports the “Volcker rule,” or at least tolerates it (I think Treasury’s basically been made to accept this), and its attempt to set up a firewall on proprietary trading at banks with depositor money. At the same time, they do not support the proposal to spin off the lucrative swaps trading desks away from the mega-banks. In fact, they have used the Volcker rule as a rationale for not supporting the spin-off proposal, saying the two strategies are duplicative. Of course, there is no hard Volcker rule in ... Read More
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REVIEWS AND OPINIONS
It has been a quiet week on the financial regulatory reform front, but that does not mean the deal-making has stopped. With the House and Senate out of session this week, Sen. Al Franken (D-Minn.) has been pushing his provision to reform the credit ratings agencies, and Sens. Jeff Merkley (D-Ore.) and Carl Levin (D-Mich.) have argued for their strengthened Volcker Rule, which bars commercial banks from betting with their own money or owning hedge funds. And it seems momentum is building behind both provisions. Credit ratings agencies are in the news, given Warren Buffett’s ill-received and contradictory testimony to the ...
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A funny thing happened in June of 2007. Back when times were better, Bear Sterns had previously created two hedge funds, one in 2004 and one in August of 2006, named “Bear Stearns High-Grade Structured Credit Fund” and “Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund.” As the New York Times explained it in June 2007, “…41 months of positive returns of about 1 percent to 1.5 percent a month. But investors were clamoring for even higher yields, which would require more aggressive bets on riskier mortgage-related securities and significantly higher levels of borrowed money, or ...
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SURVEY RESULTS FOR
THE VOLCKER RULE
is pushing hard for stricter financial regulation, promising in his first State of the Union address that he would not sign a bill that “does not meet the test of real reform.” This has left Wall Street wondering how much Mr. Obama’s regulatory proposal, known as the Volcker Rule, will cut into its profits. The proposal, named for Paul A. Volcker , the former Federal Reserve chairman, would limit a bank’s ability to trade on its own account and would ban banks from investing in hedge funds and private equity funds. It could put an end to the huge Wall Street profit machines that emerged in the last decade since financial ...
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March 22 (Bloomberg) -- The fate of the Volcker rule, which would ban proprietary trading at U.S. banks, may hinge on the word “shall.” Lobbyists for financial firms are seeking to water down language in Section 619 of the 1,336-page proposal by Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat. Their message: Study the issue first to see if it’s needed, then give regulators the option of imposing a ban. The current language in Dodd’s March 15 draft says federal agencies “shall issue final regulations implementing” the Volcker rule, which was proposed by the Obama ...
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The dominant theme of the 2,300-page Dodd-Frank Wall Street Reform and Consumer Protection Act is fear of instability and change, which the act suppresses by subjecting the largest financial firms to banklike regulation. The competitiveness, innovativeness, and risk taking that have always characterized U.S. financial firms will, under this new structure, inevitably be subordinated to supervisory judgments about what these firms can safely be allowed to do. But the worst element of this system is that the extraordinary power given to regulators--and particularly the Federal Reserve--is likely to change the nature of the U.S. ...
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Daniel Indiviglio is a staff editor at TheAtlantic.com, where he writes about credit markets, regulation, monetary & fiscal policy, taxes, banking,
trade, emerging markets and technology. Prior to joining The Atlantic , he wrote for Forbes . He also worked as an investment banker and a consultant. Bio | All Posts | Email Indiviglio Daniel Indiviglio is a blogger and editor for the Atlantic Business Channel, where he provides insight, analysis and opinion on the intersection of business, finance, economics, and politics. Some of his specific writing interests include: credit markets, regulation, monetary & fiscal policy, taxes, ...
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INFORMATION RESOURCES
Feb 26, 2010 ... For these purposes I will define the Volcker rule as ... Why does this perspective on the banks matter for regulation and the Volcker rule? ...
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THE PRESIDENT: Good morning, everybody. I just had a very productive meeting with two members of my Economic Recovery Advisory Board: Paul Volcker, who's the former chair of the Federal Reserve Board; and Bill Donaldson, previously the head of the SEC. And I deeply appreciate the counsel of these two leaders and the board that they've offered as we have dealt with a broad array of very difficult economic challenges. Over the past two years, more than seven million Americans have lost their jobs in the deepest recession our country has known in generations. Rarely does a day go by ...
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REAL TIME
THE VOLCKER RULE
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kimk101
Forbes.com Video Network | Intelligent Investing: The Volcker Rule ...: Paul Volcker speaks on how lawyers won't b... http://bit.ly/aiB8yj
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RiverCityOtter
RT @A_RABBITISH1: http://nyr.kr/byGPEL Tweaking the Volcker Rule. (#FF on the mark POVs-JM)
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compliancex
Should We Be Outraged Banks Are Skirting the Volcker Rule? http://bit.ly/9Jd64V
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QUESTIONS AND ANSWERS
LONDON – The European Union is hoping the financial overhaul moving through Congress will converge with EU calls for more regulation to fix the failures that led to the 2008 banking and credit crisis. The U.S. overhaul is being welcomed by EU leaders from French President Nicolas Sarkozy to British Prime Gordon Brown, who have long argued for the need to reign in the financial system — but trans-Atlantic accord starts to falter however when leaders move from broad goal-setting to implementation and details. In particular, European officials are skeptical of proposals to ban banks from risky trading on their own behalf. They fear ...
I just got this email from my insurance carrier. I have been with them since 1967 and they are the very best I have ever seen. Is this another example of well-intentioned governmental interferrence gone ary?? “Rarely in our 87-year history have we turned to USAA members to weigh in with elected representatives on an issue of great importance. But, we are now. “The U.S. Senate currently is considering legislation (S.3217) that would impose new rules on the nation’s financial services industry, including USAA. “As the leading provider of financial services to America’s military community, USAA ...
