Commentary: Trading reforms will cut into bank profits

[Kber]

NEW YORK (MarketWatch) -- The official Volcker Rule has been released, and the reviews from Wall Street are not good.

“Higher costs” wrote Brad Hintz of Sanford C. Bernstein. “A negative impact” on “investment and growth” complained the Securities and Financial Markets Association, a leading Wall Street lobbyist.

snip

The reality, as Hintz, notes is that these business lines have been juicing Wall Street profits during the last decade. Not only will they disappear, they will cost the industry as much as $2 billion annually to implement.

That’s the real cost of the Volcker Rule: taking away an easy path to profits. But that’s the price the industry has to pay for its mistakes. And given the size of the mistakes, it’s a small price.



http://www.marketwatch.com/story/volcker-rule-small-price-to-pay-for-bank-mistakes-2011-10-11

[Orrex]

1. I weep for the class war profiteers

Boo hoo hoo.

[Buns_of_Fire]

2. Okay, Brad. But first you're going to have to tell me why I should give a rat's ass

about wall street's holy profits. They can be reduced to eating fish heads for breakfast, lunch, and dinner, for all I care.

[TBF]

3. Poor babies ... maybe the bonus will be 5 million instead of 15 million this year? nt

[Arctic Dave]

4. So what I'm hearing is that 2 billion dollars will go to people who actually

do the work and not to the people who don't? Sounds wonderful to me.

Edit for, posting before coffee. zzzzzzz