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’Volcker defends Volcker
UPDATE: FT.com has just pubbed a Volcker op-ed, this one directly responding to European critics of his rule. A few lines:
There is a certain irony in what I read. In Europe, there are plans to introduce a financial transaction tax,
The Volcker Rule riddle
There’s no shortage of concerns about the impact that new regulations will have. Basel 2.5 hitting the bond market, the prohibition of ratings under Dodd-Frank hurting the beleaguered mortgage market,
Volcker is all up in your bonus
In its present form, the Volcker rule has the potential to change compensation structures. Not only that, but the Volcker rule cares about what your intentions were when you executed a trade. Starting
It’s not prop trading, it’s ‘liquidity management’
On Monday, FT Alphaville alerted you to one potential hole in the leaked draft of the Volcker rule. That related to what one may be able to get away with in the name of managing a portfolio of positions,
Volcker’s ‘Delta one’ loophole
Last week, Bloomberg provided more details of what’s to be expected from the upcoming Volcker rule.
The headline focused on the fact that all bank divisions would be subject to restrictions that would limit their ability to take advantage of short-term price movements in securities and derivatives markets for proprietary gain (or loss,
Goldman’s on top of the Dodd-Frank talks
A list of financial entities most panicked about upcoming Dodd-Frank rules.
Whoops! We mean a list of financial entities who are most concerned about educating regulators.
Goldman Sachs tops the list,
Further further reading
For the commute home, where you always over-deliver on expectations,
- Google misses earnings expectations.
- China changes how it reports GDP.
- Meet the Glencore IPO’s bankers. And its winners and losers.
The where and what of regulatory arbitrage
Get the little flags at the ready: on Tuesday JP Morgan Cazenove published the final installment of its trio of reports on regulatory arbitrage.
It is stirring patriotic sentiment up on Capitol Hill,
Madoff, father of the automated trade
For those who have not yet stumbled across New York Magazine’s beguiling interview with Bernie Madoff, we do recommend a closer look.
Not only is it a compelling read in its own right — Steve Fishman,
Mirror, mirror on the wall — who’s really the riskiest of them all?
This — in case you were wondering — is a list of what some academics see as today’s most systemically risky financial firms in the US:
The list has been compiled on VoxEu.org by Viral Acharya,
Too big to fail, fail?
Those worried that Dodd-Frank was overly-cautious in tackling ‘Too Big To Fail’ issues are unlikely to be comforted by the concentration limits study released on Tuesday by the Financial Stability Oversight Council (FSOC).
Volcker rule — coming, slowly, to a bank near you
Look on the bright side, we now know which rules the rulemakers will follow to get us to the Volcker rule. Some of them, at least.
The Financial Stability Oversight Council on Tuesday released its six-month study into the Volcker rule and held its third public meeting.
Gaming Volcker, ongoing
It can get confusing to keep up with how the banks are responding to the Volcker Rule, especially as some stories repeat themselves and others change.
In the case of JP Morgan, we learned in August from the Washington Post that “more than 100 project teams are hard at work trying to anticipate the implications of the new rules and to adjust the firm’s businesses accordingly.”
What Volcker rule? Credit Suisse acquires stake in York Capital
Just out on the wires, from York flaks:
Credit Suisse announced today that its Asset Management division has agreed to acquire a minority interest in York Capital Management (“York”), a leading global hedge fund manager,
Gaming Volcker is a work in progress
FT Alphaville noted last week that despite all the reports of spinning off units in response to the Volcker Rule, banks weren’t finished looking for creative ways to continue doing business as usual — especially for their more profitable activities. The banks don’t pay lawyers and lobbyists for nothing.
More on overcoming the Volcker Rule
On Monday night came the news, via CNBC, that Morgan Stanley plans to spin off hedge fund unit FrontPoint Partners. From the report by John Carney:
Morgan Stanley has been weighing the future of its stakes in several hedge funds following the passage of the financial reform bill restricting bank ownership of such funds.
Overcoming the Volcker rule, with ETFs
We heard last week how Goldman Sachs was taking its prop trading over to the asset management side of its business, in a bid to outmanoeuvre US financial reform’s use of the Volcker rule to clamp down on in-house risk-taking.
Quick comment on the Volcker rule, banks and private equity
The final language of the long-awaited Dodd-Frank financial reform bill runs to a couple thousand pages, and we have short attention spans here on FT Alphaville. In other words, we’re grateful to those providing quick-fire summaries of relevant regulation.
Volcker speaks, but knows when to shut up
As almost every banker around the world knows, Paul Volcker is living proof that, long past an ex-Fed chairman’s usual sell-by date, an octagenarian banker can maintain his relevancy.
In a series of speeches in London on Thursday,
The Dodd bill has an is-ought problem
A what-ought problem? An is-ought problem.
Senator Chris Dodd’s gigantic financial reform bill is starting to attract a bit of nerd rage for giving regulators power to regulate — but not the requirement to use it.
India sort of ♥ Glass-Steagall
And you thought the Volcker Rule was bad. The Indian government is reportedly considering forcing the country’s public sector banks to exit non-core businesses.
The thinking, circulated in a Finance Ministry proposal,
Lay off Citi
Citigroup were getting it in the neck on Tuesday over this, from Bloomberg:
Citigroup Inc., the bank 27 percent owned by the U.S., is bolstering a unit that trades stocks with the lender’s own money after a proposed government ban of proprietary trading helped spur eight of its 22 employees to defect,
Why Wall Street should have seen the Volcker rule coming
When the so-called Volcker Rule was proposed back in January, the market reaction ranged from wildly opposed to just as strongly in favour.
The one consistent emotion, as the FT pointed out at the time,
Some flesh on Volcker’s bones
So, the New York Post got this one wrong: the Volcker rule is not, in fact, going to be replaced by a simple requirement that banks hold more capital.
No matter. On Wednesday the White House sent fresh details on the proposed rule,
People familiar with the lobbying effort…
Out of the blue this one: the Volcker rule, whereby banks in the US would be banned from proprietary trading, is going to be replaced by a simple requirement that banks hold more capital. Apparently.
From the New York Post,
Bearing the cost of reformed banks
More on that doomsday regulation scenario for banks.
JP Morgan has published a whopping 184 pages on the potential impact of proposed regulatory reform on financials — that’s things like the Volcker rule,
Volcker turns the screw on Goldman
One of the more beguiling aspects of the detail-lite Volcker rule, as unveiled by President Obama late last month, was the notion that Goldman Sachs and Morgan Stanley could side-step all of the more draconian aspects of this regulatory clampdown by simply tearing up their puny deposit-taking licenses.
Volcker rule hits JPM’s Sempra deal
Ah, the Volcker rule: a godsend for non-bank associated market makers and trading houses — including the big physical commodity trading business — but not so good for trading divisions found within commercial banks.