Possible Volcker Rule repeal and the future of trading?

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What do you think will happen if most or all of Volcker Rule is repealed as hinted at by the Trump administration? There are already some prominent traders moving back to large banks after leaving hedge funds amidst rumors about Volcker rule either being re-written or repealed. If banks are allowed to bring prop trading back into full swing, would trading be a good industry to get into again? Or would it still be run by quants, programmers and algorithms albeit more of them? Would love to hear some thoughts on this, thanks.

Comments (9)

 
Jan 2, 2018 - 1:48pm

Republican Landslide & the Volcker Rule (Originally Posted: 11/09/2016)

Seems like the Republicans are sweeping the executive and legislative branches this election. A republican controlled Congress and White House means that serious legislation and regulation overhauls are possible.

So does anyone think that Dodd Frank and the Volcker Rule will be repealed? Does this mean that some kind of prop trading at banks could possibly return? What does this mean for Wall Street careers going forward and capital requirements?

http://blogs.wsj.com/moneybeat/2016/11/09/dodd-frank-repeal-it-isnt-all…

Array
 
Jan 2, 2018 - 1:49pm

I don't think this was a primary talking point throughout his campaign...

To my understanding, the following are issues he NEEDS to deliver on to satisfy his base for reelection (no particular order):
1. immigration
2. healthcare
3. trade agreements

not sure trump republicans give much thought to Dodd Frank and Volcker rule

 
Best Response
Jan 2, 2018 - 1:50pm

Down With Dodd and Volcker (Originally Posted: 11/29/2016)

Jeb! Hensarling, the chairman of the House Financial Services Committee is working on a plan to take out key aspects of Dodd-Frank and Volcker Rule.

The name of the plan is The Financial CHOICE Act. (Creating Hope and Opportunities for Investors, Consumers and Entrepreneurs. Gotta love D.C. abbreviations.)

I have attached the executive summary below. (3 pages long)

The big banks under the Financial CHOICE Act would get the shackles taken off when it comes to betting with taxpayer deposits. There is also a provision to repeal Title II of Dodd-Frank ("Too Big to Fail") and implement a new chapter to the Bankruptcy code.

Looking at what Dodd-Frank and Volcker Rule have done since their inception, I only see more problems. Also with Met-Life winning their "TBTF" suit there is more tension on labeling of whether a company is a systematically important financial institutions

What do you guys think of this new plan? Do you like it? Hate it? If you were in congress, what would you do with financial regulation?

 
Jan 2, 2018 - 1:52pm
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