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Dodd Reverses Course, "Strongly Supports" Volcker Rule, Goldman Shares Slump
In a seeming reversal of yesterday's FT rumors that Chris Dodd would do everything in his power to undermine the passage of the Volcker rule, as part of his prepared remarks at today's hearing on high-risk investment activities by banks, Dodd said that he "strongly supports" a proposal to restrict large commercial banks from engaging in significant proprietary trading or owning hedge funds or private equity arms.
"These proposals were borne out of fear that a failure to act would leave us vulnerable to another crisis, and of frustration at the refusal of financial firms to rein in their reckless behavior."
However, since Dodd is well known for diametrically changing his opinion depending on what camera angle he is being filmed from at any given moment, we will wait to reserve judgment on Dodd's schizophrenic approach to policymaking at this point.
In the meantime, however, Goldman Sachs stock is not too happy about this development.
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How is their behavior reckless, when they are being backstopped by the government?
What are the chances that Dodd was on the horn this a.m. informing Goldman of his pending "reversal"? I am sure their prop desk was short their own stock.
This is just nuts.
Good to see volume picking up in the right places
Looks like someone needs a bigger bribe...
BINGO! 10044 understands the nuiances of Kabuki theater...
Right on the money, son. I mean what's wrong with a lizard like Dodd raising his fees? Banks can, can't they? Why not Chris guy?
++++++100+++++
Dodd needed more under the table money from the Goldman Sachs lobby as he will soon not be feeding of their troff. Grab all the cash you can right now Dodd, grab with both hands and make a stash.
Don't look too slumped to me, someone let out a rumour that 'don't worry it will be all okay and nothing will happen'?
The problem with this financial reform crap is, by the time they implement anything the entire financial system will have already collapsed again.
oh stop ...... Schumer and Dodd aand Shelby will all nod and let Volcker bang the desk and declare hedge funds publice enemy number 1 and then they will kill the bill ....
take it to the bank ....and GS at highs of the day .
Volcker is a fossil of the 70's . He imagines JPM will make great money with its broker dealer and securitization group spun off and the remaining folks do money wires and and credit cards ....... hello ? JPM will have to reduce headcount by the tens of thousands if they going back to a 1980 model .
What exactly is wrong with the model where bankers loan at 6%, pay interest at 3%, and hit the golf course at 3:00?
Banking shouldn't be exciting. If we want excitement with our money, we can go to the casino.
Dodd got wind of something.
Yeah. Might have something to do with him suddenly learning that "failure to act would leave us vulnerable to another crisis". Meaning a crisis looming between now and November '10.
I wonder if that one has already been called. Maybe some of the "national security" grumbling is making the rounds this morning and suddenly it's all CYA. I can see Obama calling people up and saying "You better make the right noise on this cuz it's about to turn ugly" and leaving the rest to the imagination.
cougar
Both Dodd and Shelby appeared to have simultaneous "come to Jesus" moments within the last 24 hours.
Wasssup, dudes?
Just an observation, but when one vacilates diametrically such as Dodd, he evidently doesn't have the slightest idea of what is taking place.
Wrong. They never utter a word that they haven't already prepared to profit from.
Fact. These Congressional hearings are little more that whore-mongering. Now git out there an' shake that booty, beotch.
Without fluctuations, there is no profit to take home.
What good is it if a stock goes up relentlessly? You can't
sell a stock that's rising. But if you can manipulate the news on the stock you can make a killing if it merely goes up and down by about $10.00 each way, every week.
I'd like to give to give Dodd the benefit of the doubt (likehelliwould) but this is just his trust being short the financials affected by the VP (Volcker Put) that have been so good to him while in the Senate.
Machiavelli would be proud.
You go, Chris. (you shmendrick)
"You can't sell a stock that's rising"
Huh? If it is rising that means somebody is buying at a higher price. If someone is buying then someone has to selling.
So of course you can sell a stock that's always rising, as long as there is one more sucker in the room.
Isn't that the whole premise of this national scheme, er I mean, Economy In Recovery?
@Tj
The market is always defined as buyers and sellers. The holders, like institutions of, say, 95% of GE, might sell a fraction of their holdings or none at all. What causes the price of GE to rise significantly is the relative unavailability of shares,while there are many more buyers than sellers.
For every buyer there is a seller, true, but what makes the stock rise is the fact there are fewer and fewer shares as it rises that are available because the vast majority of the holders of the stock are refusing to sell.
And a stock rising by $10.00 in a month is not nearly as advantageous to a trader that can manipulate the stock by
making it bounce up and down during that month at the rate of a $1.00 a day. That provides the trader with $30.00 in his hands, cash money, and he can do it again next month, whiile the holder of the stock will see his 'gains' evaporate as the stock is moved down. So a GE at $16.00 in one month rising to $17.00 and being held is not even close to a GE trader who buys and sells the stock between $16.00 and $17.00 fifty times during the month.
Clear?
The JPM , Goldman battle will be the most epic financial battle in the history of money
Gentleman , oh sorry I meant parasites - let the battle commence
Exactly, let the titans clash and ...crash.
They're slumping up!
There are lots of ways to make that sausage. When the grandstanding is over and the GS lawyers have crafted the legislation, there will be enough built - in room to maneuver, so that money can still be made, though in a different way. The pols won't read the rules, nor would they understand them if they did. The trading strategists will have gamed the outcome 3-4 different ways already so the tough talk won't effect their ability to ring the register. The key terms that need to be discussed in any hearings, won't be. BFD.
the hearings are infected.........the "usual suspects" seem to be stricken with diarrhea of the mouth.
Much is said, to great fanfare, yet when all is done, there is nothing but the stench of well digested food in the air.
I think the banksters are no longer beyond the law. "Populism 101, and the Socialist "Opus Politicus", each dictate that there must soon be a scapegoat for the coming financial crash. How ironic it shall be, that the very people that put the current administration into power, will be the ones who are thrown to the wolves (to maintain power).
When the dust settles, there will be but "weeping and gnashing of teeth".
Uh... so sorry little ZH.
This is what's know as "recovery".
-BHH
Mr. Cofker (spelling?) challenged Mr. Volcker\'s stance by saying that no financial holding company that had a commercial bank failed while performing proprietary trading. It appears as if Mr. Cofker may have received his information from the banking lobby, and did not do his own homework.
Let\'s reference the largest commercial bank/thrift failure of the all:
http://www.allbusiness.com/banking-finance/banking-lending-credit-services-mortgage/5960523-1.html
Washington Mutual Hires John Drastal as Managing Director of Trading for WaMu Capital Corp.
It is truly unfortunate that such misinformation and disinformation is allowed to permeate through not only the media, but actual congressional hearings. It is truly a shame. If I am not mistaken, WaMu was the biggest bank/thrift failure, EVER! If anything, this should provide momentum BEHIND the Volcker Rule in lieu of having politicians trying to out-regulate an accomplished regulator on how to regulate banks.
Corker I think. Notice each speaker looked at him like he was insane when he made this statement. No, not insane, just corrupt. I think he received 500K from the big banks in his junior senator campaign. The trial lawyer in me can't stand to watch these hearings. This "fact finding" process makes me sick and this crap is so much more important than 99 percent of the trials in this country. Thanks for the info.
Snakes of this kind don't deserved being addressed as "Mr.", Reggie. You can safely refer to them as filth, vermin or even oafal without pressing it.
In my usual west coast posts (which happen when I am not in my digs on the east coast and thus I stop giving a shit about the market I can only state:
"Enough is enough! I have had it with these motherfucking snakes on this motherafucking plane. Everybody strap in. I'm about to open some fuckin' windows..."
http://www.youtube.com/watch?v=vLaX8UvVUQw
The stock look happy now...
Dodd... what a moron. A moron's moron.
Dip him in concrete, make a statue out of him and stick him in a park in Hartford so pigeons can crap on him... That my friends, would be poetic justice...
I know this guy, Tom the commercial fisherman. Tom is an astute judge of character and has two opinions of people that he gives freely in a loud gravelly voice:
"He's alright."
or
"He's a worthless cocksucker..."
Dodd would be the later on Tom's list...
Dodd will be homesteading in Paraguay soon with the others.
no slumping, they did just fine. 15 minute sell off is not indicative of anything
hmmm (GS):
156.94 +3.81 (2.49%)
The metaphorical VIX on this volker rule is like sub 10 right now, everyone is so complacent about it, means the risk is to the downside.
Maybe this thing surprises everyone and is iron clad, I could see it, the democrats need something to point to, "we shut down the banks risky practices, republicans opened it up"
but hey keep downplaying it
Methinks no one handed Dodd the confirmation of the wire into his offshore account before he found his way into the hearing.
For anyone interested in just a superb analysis of the meaning of the Bernanke confirmation, here's Michael Hudson at Counterpunch:
http://www.counterpunch.org/hudson02022010.html
The lobbyists from the local community may have explained his need for funding in November...
These guys' (I mean those on the committee, from both parties) wall street commitments make them look miserable when handling TBTF - which is the real 'make or break' issue de jour.
You may not believe me, but I feel that if Palin had some good advisors, she could easily take advantage of the prevailing anti-establishment sentiment to get elected in 2012.
Palin is retarded. But a bunch of smart Third Graders could take these pukes. All anyone has to do to win the next 3 elections is prove without question that they love puppies more than money.
cougar
That may not be very easy to prove!)
Palin is not only ignorant she is a snake. Enough of her already....what a whore.
http://www.youtube.com/watch?v=vLaX8UvVUQw
Cue the auction soundbyte. Inmate Dodd just upped the ante.
Oh c'mon.....Dodd is simply letting Corker and Shelby
carry the water for cover and then going through a
pantomime with the White House that it is
too late and too complex to get decent legislation,
"so let's all agree to accept my original shit legislation cause it's something" Mission accomplished.