This morning, Citi was fined for engaging in illegal propietary trading.
The Volcker Rule was put in place to limit the risks and speculative decision making the largest banks can make, and came directly after the 2008 financial crisis.
Citigroup agreed to pay $5.75 million to settle the allegations tied to unauthorized trading.
$5.75 million is a rounding error for Citigroup. For a bank of that size making large capital gains prop trading, it'd be easy to look at this fine like Google does the EU fines, a simple cost of doing business. Providing no incentive for Citi to stop.
What's the point of regulating prop trading if all banks get is a slap on the wrist?
What do you think of the Volcker Rule?
Personally I'm not a fan of government having their hands too deep in any market, barring healthcare, and the Volcker Rule seems to be exactly that. I understand the ramifications for the general consumer should banks be allowed to make riskier speculative trades, however, I believe those risks are a price to pay for living in a free market. As for the fine, if they're going to have this rule, at least enforce it properly, much larger fines, make it a felony and put people in prison.
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