Will classic Prop Trading at Investment Banks ever make a comeback? I want it to
Back in the day it was not abnormal to see huge trading floors at major investment banks like UBS, GS, MS etc. Then the financial crisis came and Obama signed in the Dodd Frank act essentially killing of LS investment of the companies assets into public markets which basically killed off a lot of our Markets roles.
I heard back then you could make a killing one year in Prop Trading and walk home with a few million in the bank and it was not uncommon to switch from IB to Prop Trading within firms to try it out (I wasn't born then, could someone confirm?). Nowadays most of what big banks do is market making and asset management, the actual risky investments are no more and are left to Hedge Funds.
I would love to see these make a comeback and give HFs a run for their money, plus the injection of cash might drive the economy to the moon. I wouldn't mind there being some sort of restrictions to prevent another 2008 from happening like a bank can't have more than 80% of their assets invested but still it would be great to be able to have that as an option again.
What do you guys think, would we ever see the Dodd Frank act and the Volker Rule pulled back giving us leeway to invest in markets as we please? Do you want to see it make a comeback? What are some misconceptions about that time?
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