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It's Official: The "Volcker Rule" Ends Prop Trading At Bank Holding Companies
11:37 01/21 OBAMA PROPOSES WIDER LIMITS ON NON-DEPOSIT FUNDING SOURCES
11:37 01/21 OBAMA BAN WOULD PREVENT BANKS OWNING,INVEST IN HEDGE/EQ FNDS
11:37 01/21 OBAMA PROPOSING RULE LIMIT COMM BANKS FROM PROP TRADING
11:37 01/21 OBAMA:WANT BAN BANKS FROM OWN,INVST,SPONSR HF,PRIV EQTY FNDS
11:37 01/21 SR ADMIN OFFL: NOT PROPOSING RETURN OF GLASS-STEAGALL ACT
11:37 01/21 ADMIN OFFL: AUTH TO PREVENT RISKY BEHAVIOR ALREADY IN HSE BILL
11:37 01/21 ADMIN OFFL:INAPPROP BANKS PROFIT WHILE SUBSIDIZED BY TAX PAYER
11:37 01/21 SR ADMIN OFFL: PROPOSALS KEY TO DEALING W/TOO-BIG INSTITUTIONS
11:37 01/21 SR ADMIN OFFL: WANT CONGRESS TO ADD PROPOSALS TO REFORM PACKGE
11:37 01/21 SR ADMIN OFFL:BAN ON PROP TRADE ALSO APPLY TO BANK HOLDING COS
11:37 01/21 ADMIN OFFL:WANT REGULATORS TO BE REQUIRED TO STOP PROP TRADING
11:37 01/21 SR ADMIN OFFL: WANT TO PREVENT EXCESSVE CONCENTRATN IN FIN SYS
11:37 01/21 SR ADMIN OFFL: WANT BANKS TO FOCUS ON CORE BUSINESS, LESS RISK
11:37 01/21 SR ADMIN OFFL: WANT TO 'DISINCENTIVIZE' USE OF RISKY LEVERAGE
11:37 01/21 OBAMA:WANT BROADER LIMITS ON LIABILITY MKT SHARE EXCESSV GRWTH
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GS have quietly converted into a Financial Holding Company...
oh cmon, it's not like they're effectively "HQ'd" on paper in Utah or something. i mean, really.
oh, wait. really ? they are !
huh, how do ya like that ?
at least they didn't pull an art modell in the middle of the night like King HAL did; surely extradition jurisdiction had nothing to do with that dick decision by dick.
Volcker's like a big black shadow over wall street today.
12:00 we all want PPT to DIE
Just taking a mandatory furlough day. Maybe tomorrow too... if Obama doesn't get off this bankster reform gig
To set up a pullback. Obviously. Make the dip, buy the dip. Inflation is inevitable, so pullback for one last buy. Easy money.
1000% with Obama on this one
yet another speech filled with rhetoric. so I guess his job is done now? just like health care reform that got written by pharma to include mandates, but no choice? by the time GS and JPM get done with the lobbying it will be to have ordinary citizens rub their feet when they get done pissing on us.
+1000
Zactly. His rhetoric produced gains in pharmas stock based on the assumption that health care was inevitable. Woops. Hope and dreams, rubies and diamonds...thats what Barrock is made of.
Notice how he referred to Volker and not a mention of Tiimmy
thank god for Paul Volker and Massachussetts. Will this common sense prevail, or will it be watered down by the lobbyists?
I'm with Barack on this one too. Hopefully, Volcker can rock Wall St's world before they get to him.
from Simon Johnson
Paul Volcker Prevailshttp://baselinescenario.com/2010/01/20/paul-volcker-prevails/
anynon says:
the White House spin machine is at full throttle and the disillusioned supporters of Obama (including Mr. Johnson) are ready to blindly accept that Barack (whose administration has showered the banksters with hundreds of billions in gifts) has had a Damascus road experience. I fully expect that in the coming days Taibbi and other disillusioned progressives will jump on board the Obama Populist Express - all aboard!
Volcker has been brought out in an act of political desperation in an attempt to appease populist sentiment and rally his base. Ask yourself how often have Obama's "tough" words been translated in to action. How often has he said one thing and then done a 180. When it is all said and done what will emerge is a luke warm diluted set of policies with sufficient loop holes to protect the special interests while appeasing the naive.
Obama wants. Today. LOL. Forgotten.
Obama is now officially Herbert Hoover.
It is impossible to prevent the big, globalized elephants from this business.
There are always loop holes for the well-capitalized boyzzzz at GS etc.
Someone restrict Volker's salt intake. We need that ol' boy in good health, talking sense, and leveling the playing field for at LEAST 3 more years.
Volcker is being paraded out in preparation of the announcement with a month that he will be taking over for Bernanke.
Ben will not be confirmed. The administration is well aware their only chance at election is Rico cases against banks, the removal of Geithner and Bernanke and Banks being taken to the cleaners and broken up Ma bell style. As evident by Goldman's domination of the markets by looking at their profits. Im sure Morgan Stanley just figured out who broke into their cookie jar last quarter. Now they cannibalize one another. Grab some popcorn 2010-11 is the final act for this historical event.
I think you got it- it makes sense, the Congress will back it totally. Of course you know, Volker is not afraid to raise interest rates quickly and to the top.
Sure hope you're right. We'll see.
I think you're right. Obama has been getting his ass kicked (and deservingly so) in elections and Massachusetts was the big one that finally slapped him hard enough to finally look at the people he purports to represent. Like all politicians he has to save his own skin and the best way is to align with populist anger. If doing these things was really his idea and really what he wanted to do from the outset, then why do nothing except the status quo and more handouts for so long? No, no, no. He is weaseling his way back to a being a “good guy” by one of the oldest politician tricks in the book: find a common enemy to hate and misdirect the public’s attention at that guy so they forget how bad you are screwing them. He’s improving as a politician. I’ll give him that! Fortunately this is something we need anyway. But as I said, if this was something he wanted to do, he should have done so from the beginning.
Props for noting the weaseling. But improving as a politician? His weaseling has been top form all along. That is what he does, he weasels.
I wouldn't bet against Volcker. Hopefully Bernanke won't get reappointed, but if he doesn't, I suspect his replacement will not be Volcker. Good call, though, either way.
Good cop/Bad cop routine, you betcha. DC thinks Hegel's dialectic will work one last time. Too bad Volker has nothing in the tank to fight the coming onslaught of inflation. He got it once, but this time around all he will say is, "I tried."
We are descending into utter chaos people! There is no way out!
Goldman to announce privatization (thanks for the bailout money)
Goldman moves headquarters to Bermuda.
With a quality fiber internet connection now in place, Zanzibar is a good option too!
Didn't watch the press release today. But is this a total ban on proprietary trading, or just a limit on it? Two totally different things. And is this just on TARP-banks or publicly-ran companies?
So could Goldman go private and continue prop trading?
The way I read it is:
A total ban for any entity that contains a "bank" operation.
For non-bank, you are free to do whatever you like at your own risk.
That means, GS will have to give up its financial holding company license and get rid of banking business if GS wants to do Prop trading or GS will have to get rid of Prop and any activities considered to be hedge fund or private equity related if GS wants to keep its financial holding license and access to the Fed costless credit.
So fair. GS simply cannot have head I win, tail taxpayers lose.
Big Paul V got Obama's ear. The question is whether this is just political jockeying due to the fallout in Mass. or whether this is going to be the beginning of meaningful financial reforms. Public scorning and privately they might be telling the bankers "don't worry, nothing will come of this". An Orwellian master coup!
Like Taibbi said a while back (paraphrasing): If he's changing course now it means 1) he knew what would actually benefit the people, but did not do it in order to represent corporate interests which makes him EVIL 2) he doesn't know what he's doing and is merely changing course due to the whipping in Mass. and his listening to Volcker is mere chance, which makes him INCOMPETENT.
After his backpedaling and lying about the public option and the dismissal of civil liberties from a motherfucking ex-CONSTITUTIONAL LAW PROFESSOR i would choose the former.
Just because he taught Constitutional Law, doesn't mean he knows anything about the constitution, or cares about it, or interprets it in any way that would be recognizable to someone like you or me.
I'm quite confident he's one of those "living Constitution" guys who believes that the Constitution "is whatever we want it to be".
and now the easy part....IMPLEMENTATION!
Touch down .....TD....Touchdown !!!!!!!!!!!
WAITING FOR THE NEXT BIG SCORE !!!!!!!!!
Congress better fucking pass this. If they can pull the Wall Street boners out of their backsides long enough to make it into the chamber to vote.
potentially MAJOR LOOPHOLE: "Banks will no longer be allowed to own, invest, or sponsor hedge funds, private equity funds, or proprietary trading operations for their own profit, UNRELATED TO SERVING THEIR CUSTOMERS."
i do not trust volker, even when bearing gifts. something is up, something really big.
Barack, perhaps you should have been focusing on bank reform and the economy all year, instead the day after you lost in Massachusetts.
When actual ACTION happens THEN i'll believe it. Until then, just more jabber jawing... and JIT for bHO's yearly State/Nation teleprompter reading to USA citizens.
Won't pass, make any difference without a real investment in America, but at least this proposal will get the monkey off Obama. He can say I tried! but they the Republicans said ... No! It's a Charade, a poker move.
11:37 01/21 ADMIN OFFL:INAPPROP BANKS PROFIT WHILE SUBSIDIZED BY TAX PAYER
Well hell! Wasn't the whole idea behind all of the support that has been and continues to be provided to these institutions to enable them to shore up their balance sheets through ZIRP and all of the programs being run by the fed, treasury and, what, up to 50 government agencies, departments, commissions and such? Now the administration is being really dumb. A sure fire sign that there is a loss of continuity between the ear buds.
So won't Goldman et al simply convert back into an investment bank instead of a bank holding company? They already got their bailout so they don't need to be a bank holding company anymore. Even if (when) they find themselves on the brink of collapse, they'll just cry TBTF/end of the world and get rescued again.
Agreed. GS can. Squid are splippery. The others actually have commercial bank subsidiaries.
The Communist party is tone deaf
These rules will never pass , and by the time they come close to hitting the House floor , the Communists will lose both Houses
Jimmy Obama Carter . . . . lame duck
Mo-ron. The Repigs will get clobbered if they oppose this. The public is not enamored with banksters lately.
I was wondering why the big insurance companies are down so much today in addition to the big banks. Is it just a matter of "sector risk." I know they hedge market risk so they can offer 5,6, or 7% variable annuity rates. I don't know if that would be considered prop trading. So would ending prop trading affect this line of business sending them back to the good ol' days of plain vanilla insurance products?
If O is smart he gets rid of Larry Summer and Tim Turbotax.
Accepting the offer of temptation defines short term gains want and the lack of a host for law. Dumb shits!