Monday, 20 October 2014
Last updated 3 days ago
Jun 30 2010 | 2:21pm ET
Congressional Democrats went back to the drawing board to further water-down their financial regulation reform bill as the namesake of its flagship alternative investments rules expressed misgivings about the legislation.
House and Senate negotiators agreed to drop a $19 billion levy on banks and hedge funds to pay for measure. Instead, they decided to use $11 billion from a bank bailout fund and higher Federal Deposit Insurance Corp. rates.
The moves come as three of the four Republicans who supported the financial reform bill last month expressed reservations about the bank fee. Sen. Scott Brown (R-Mass.) told Sen. Christopher Dodd (D-Conn.) and Rep. Barney Frank (D-Mass.), who are shepherding the bill through the House-Senate conference, that he wouldn’t vote for a bill with the bank fee in it.
The Democrats need the Republican votes to meet a procedural hurdle, even more so following the Monday death of Sen. Robert Byrd (D-W. Va.).
One thing that did survive the House-Senate negotiations was the Volcker rule, which, as originally written, would have barred banks from proprietary trader and from the alternative investments industry.
The former bit survived. The latter, however, has had a great many loopholes punched through it, much to the dismay of the rule’s namesake, former Federal Reserve chairman Paul Volcker, an adviser to President Barack Obama.
Volcker is said to be disappointed by a compromise that will allow banks to invest 3% of their capital in hedge funds and private equity funds. The rule he envisioned would have barred them owning, investing in or sponsoring alternative investment funds.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...