Saturday, 20 September 2014
Last updated 22 hours ago
Feb 24 2010 | 2:19am ET
The so-called “Volcker rule,” which would bar banks from owning, investing in or sponsoring hedge funds, isn’t dead, but it’s not quite as ironclad as it once was.
As originally conceived by former Federal Reserve Chairman Paul Volcker and proposed by President Barack Obama last month, bank holding companies would be barred from proprietary trading, as well as from participation in the alternative investments industry. But yesterday, the Treasury Dept. said it would push only for “mandatory limits” on prop. trading, rather than an outright bar.
Similarly, the Obama administration has recast its proposal to back only “restrictions on owning or sponsoring hedge funds or private equity funds, as well as on the concentration of liabilities in the financial system.”
The slight backtracking comes in the face of opposition in Congress—including from top Democrats—to the full Volcker rule. They also make clear that the White House will not support moves to simply give the Securities and Exchange Commission and other regulators the power to limit banking activities, as the bill currently being considered by the House of Representatives.
“We believe that rather than merely authorize regulators to take action, we should impose mandatory limits on proprietary trading by banks and bank holding companies,” the Treasury said.
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.