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so late isn't element we got a we got the bakers
so there was the vocal role it was in the dodd-frank bill now
that Frank pass approximately twenty-eight years ago
quake but it's been a while are but they hadn't
implementable cool yet but here it comes Buffalo call roll
what is it by his this is very important because
out with a gala with the banks have been to so far as they begin with our money
so they be depositing money in this is money we have on hand
now we do our own trading and went to your own risk and when we make that
money of course we are you back to the past about ok
because they are you back to the gamble with your money and then the keep the
winnings
out the crash hoops your money's gone
you know that we've got the FDIC to protect certain amount a bit of course
or the taxpayers have to step in either through their PIC
or on a mass scale like they did in 2008 to the local rule says UK gamble with
the money
if you wanna make markets which is you're an investment bank and you gotta
make a deal for both sides to different sides come to you
well then you can do that right but you can gamble with the money especially
depositor Mike
are a great impact though the president was very happy about this he said
the vocal we'll make it be legal for firms to use government assured money
to make speculative bets that threaten the entire financial system
and demand a new your accountability from CEOs who must sign off
on their firms practices well that sounds terrific problem solved
especially because remember such as that its depositors money
that the users some other collateral but they're also
getting government-backed loans at incredibly low rates
and to be able to use them for gambling seems outrageous as well
alright so and so having impose reports on the
it passing the explain the percent is big Wall Street banks
are facing uneasy future after US regulators on Tuesday
finalize a vocal rule a measure that attempts to curtail big bets on certain
financial instruments
in the second set as they say but
in a potential concession the banks themselves
largely will be responsible for determining whether they're in
compliance
I hook you up
well cool it was nice knowing how they say this with a straight face
how they passed through the rule laws as if they matter alright
let me give you more horrifying details official said the final attempt to
straddle the line of course it's Obama
between banning so-called proprietary trading trading by banks from
for their own account but preserving big banks abilities to hedge their rest
and buy and sell securities in order to serve their customers otherwise known as
market-making
so that's what I meant market-making is perfectly normal reasonable what a bank
should do
right but now the user is excuse I need a hedge
like for example the London whale the one that lost six billion dollars for JP
Morgan
it was supposed to be hedging against other s when they said hey what are you
heading for the IR
Nepal their bedding to make more money and they lost the bet if they'd won the
bet they'd all
take an extra tens of millions of dollars from they lost the bet mer
its shareholders got tweaked a little bit you know
and none other executives of course had to give
any of the money back no no no they get keep the money and go home with it
so in this case apparently the banks are going to decide what's proprietary
trading in or not
they continue the regulators didn't draw a really bright lines for hedging
or market-making this thing is one giant loophole
if it's badly implemented as policy director for Americans for financial
reform
now we think it's gonna be properly implemented or could turn into one giant
loophole
furthermore having a POS explains but the establishment
a pram earners that ultimately will determine whether banks or comply with
the rules
was left to the banks themselves who are also relies
other banks to tell regulators whether they're trading practices
as they define them comply with its provisions
ok but my mind is when you thought it couldn't get any more laughable
the bank's will tell the regulators
this is what I've decided the rule should be and
I will also tell you whether I'm comply or not with my own rules
well are you not merciful we really appreciate that
this is a really tough for who the banks must be shaking in their boots
in fact a check stock market today and it turns out the
price for the banks though yeah it went up
and didn't go down you know they're like oh my god they took a book or roll
democrats the markets the bank so nobody will want to invest in the bank's
has funny because they're pricey there were stable or when up today
by one more terrifying detail the final rule left off no
open the possibility the banks may count other banks
as their cap customers casting doubt on potential effectiveness
for measure intended to help determine whether banks are trading to benefit
their own bottom lines
or the benefit but their clients i gets in the way he's a little bit but it's
really important
that's when I read that sentence Oside
I'd Frank is a useless the wall rule has become
a joke and by the way we don't know both gramm self the guy was named for
backed away from it in the middle lobe this talk about how to implement it and
said this has become a joke and you
just walked away sinks a cinder block a rule Sasaki rediculous
you know stupid fig leaf put into pretend you're doing something
when in reality you are doing anything now I gave me this sentence in the weeks
why
now look again if you're make a trade
on behalf of your client well that's what investment banking is supposed to
do
right but the banks pretending they're making trades on behalf of clients
make trades for themselves bridges while gambles right
could they make those trades with other banks
so if you consider trades with other banks for you
as customers then there is no Volcker Rule
then it doesn't even exist let alone their joke oven implementation and
regulation ovett
right so could that be thinking new
any gambling day one this is Washington 101
where they pretend to fix the problem and then
they do absolutely nothing and there's one final piece a bit
one other people quoted in the story said well
now it's on the regulators so if anything goes wrong
I guess is the fall the regulators perfect
so the bank's pics the rule so they're is no regulation
and when they crash a bill turnaround thing you see there was too much
regulation
thats Obama administration 101
change on outside continuity on the inside
and when you go for the right in things get screwed up
the right wing will say you see we went too far left
so in some ways this has been even more damaging
then doing nothing