US ban on high-risk bank trades approved

[unhappycamper]

http://www.adn.com/2013/12/10/3222960/us-ban-on-high-risk-bank-trades.html



FILE - In this March 18, 1980, file photo, Federal Reserve Board Chairman Paul Volcker listens to a question as he appears before the Senate Banking Committee in Washington, D.C. The Federal Reserve and the Federal Deposit Insurance Corp. each unanimously voted to adopt the so-called Volcker Rule, taking a major step toward preventing extreme risk-taking on Wall Street that helped trigger the 2008 financial crisis. The rule which states that U.S. banks will be barred in most cases from trading for their own profit under a federal rule is named after Paul Volcker, a former Fed chairman who was an adviser to President Barack Obama during the financial crisis.

US ban on high-risk bank trades approved
By MARCY GORDON
AP Business Writer
December 10, 2013 Updated 4 minutes ago

WASHINGTON — U.S. regulators have taken a major step toward reining in high-risk trading on Wall Street, banning the largest banks from trading for their own profit in most cases.

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The Federal Reserve and the Federal Deposit Insurance Corp., the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Office of the Comptroller of the Currency each voted Tuesday to adopt it.

The final version is stricter than many had expected. Its goal is to reduce the kind of trades that nearly toppled the financial system five years ago and required taxpayer-funded bailouts.

At its heart, the rule seeks to ban banks from almost all proprietary trading. The practice of trading for their own profit has been very lucrative for big banks like JPMorgan Chase, Bank of America and Citigroup. The rule also limits banks' investments in hedge funds.

[OLDMDDEM]

1. the Big Banks

Why doesn't our Congress grow a pair and re-pass Glass-Steagall? You know that the Big Banks will, all of a sudden, have foreign outlets that will do the derivative trading that has been going on over the past 14 years. Money talks. They have the mon ey and the lawyers. Theirs have been better than ours and will continue to be until we can get rid of those in Congress who make a good "retirement" living by the lobbying dollars they receive from these fatcats.