Obama Bank Plan Could Pass In Months

Jan 28 2010 | 2:44pm ET

President Barack Obama’s plan to bar banks from proprietary trading or participating in the alternative investments industry could be passed by the summer, the head of the House Financial Services Committee said.

Rep. Barney Frank (D-Mass.) told the Financial Times that he and his Senate counterpart, Sen. Christopher Dodd (D-Conn.), would have a bill ready by March, and it could be passed within six months, and definitely before November’s mid-term elections to Congress. Frank also moved to quell concern that the U.S. would be going it alone on the new regulations, a worry expressed most recently by French President Nicolas Sarkozy.

“I think we’re going to see substantial harmonization,” he told the newspaper. “We’re taking to the EU and I’m hopeful we’ll end up in the same place.” And despite the protestations of its leaders to the contrary, Frank said he believed the U.K. is “ready to come with us.”

Frank said Obama’s proposals, which would bar bank holding companies from owning, investing in or sponsoring hedge funds or private equity funds, could be added to the financial industry regulation overhaul making its way through both houses of Congress.

“We’ve been working with Paul for most of the year, so I wasn’t surprised,” Frank said of former Federal Reserve Chairman Paul Volcker, the driving force behind Obama’s planned restrictions. But he said that banks would be given “at least three years” to comply with the new regulations.

“You can’t have a fire sale,” Frank told the FT. “There would have to be a phase-in.”


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.