Ever since the Dodd-Franck was put in place in 2010 and paralyzed Risk Taking in Banks (most notably the legendary Prop Desks),
The whole dynamics of the industry have changed, Hedge Funds and PE are the only destinations for those who embrace risks and Banking has become more "boring", acting mostly on Advisory & Traditional operations,
But as per this Artcile:
http://www.bloomberg.com/news/articles/2016-08-26…
"The document will include plans for restricting banks’ investments in copper and hard-to-value assets (Level 3) for ex: MBS, illiquid assets.."
"the document might suggest sweeping changes to lenders’ ability to invest in physical commodities and buy direct stakes in companies."
Looks like more scrutiny is in the horizon for Banks, regulators are looking to cut any line still open for Banks to take indirect exposures.
What's your take on this? Will regulators ever get over the crisis or keep fighting until Banks become nothing more than an ATM Machine?
