The Volker Rule/Financial Reform and Stuff
So in the passed couple weeks, financial reform is back in the news, primarily in the form of the Volker Rule. Then today word that banks like Goldman Sachs and Morgan Stanley are going to remove their bank holding status.
http://dealbook.nytimes.com/2011/10/12/could-gold…
Was just wondering what all of your feelings on this was. As someone whose not in the industry I think its a great thing to have regulation...although I'm sure there is going to be plenty of you who disagree lol.
Anyway just wanted to get some of your feelings, both as financial professionals and American Citizens.
Not sure about the effect of removing the bank holding status but I ran across this article about the end of prop trading as we know it.
http://www.usatoday.com/money/companies/regulation/story/2011-10-12/sec…
Bad news for banks but great news for hedge funds.
A large majority of the new regulation contained within Dodd-Frank is detrimental not only to the banks and their profits, but to the economy as a whole. Most importantly, as has been said by many, it puts our banks at a huge disadvantage against foreign competitors. What's bad for the banks, is bad for all Americans. Saying regulation is good because you feel that Wall Street and the banking industry caused this period of deleveraging or for whatever reason, is foolish.
As for Goldman and Morgan Stanley changing from a bank holding company, that is not possible. There is a provision in the regulation that explicitly states that if you were a recipient of TARP and were at one point regulated by the Fed (the primary reason they converted to access lending), you can't go back. Someone referred to it as Hotel California. You can check in, but never check out.
America is going to ultimately suffer the most from this regulation. While people might hate the banks for whatever reason....they are the engine of growth. If you feed it crap, its going to stall.
A large majority of the new regulation contained within Dodd-Frank is detrimental not only to the banks and their profits, but to the economy as a whole. Most importantly, as has been said by many, it puts our banks at a huge disadvantage against foreign competitors. What's bad for the banks, is bad for all Americans. Saying regulation is good because you feel that Wall Street and the banking industry caused this period of deleveraging or for whatever reason, is foolish.
As for Goldman and Morgan Stanley changing from a bank holding company, that is not possible. There is a provision in the regulation that explicitly states that if you were a recipient of TARP and were at one point regulated by the Fed (the primary reason they converted to access lending), you can't go back. Someone referred to it as Hotel California. You can check in, but never check out.
America is going to ultimately suffer the most from this regulation. While people might hate the banks for whatever reason....they are the engine of growth. If you feed it crap, its going to stall.
here here
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