Trump may help Wall Street banks get their trading groove back

http://www.cnbc.com/2017/05/12/trump-may-help-wall-street-banks-get-their-trading-groove-back.html

Help likely is on the way for banks looking to get out from under trading restrictions levied after the financial crisis.

At a closed-door meeting earlier this week, Treasury Secretary Steven Mnuchin directed five regulatory agencies to review the so-called Volcker rule, which prohibits banks from trading for their own accounts, according to a Bloomberg report.

The rule is designed to reduce risks at big financial institutions and head off the need for the kinds of bailouts needed during the crisis. However, banks complain that it has constricted their operations and reduced revenues.

Mnuchin’s directive is similar to others from the White House that have sought reviews of the myriad regulations put in place under the Obama administration. The meeting came with the 15 agencies that comprise the Financial Stability Oversight Council, according to Bloomberg.

The ultimate goal is to get the FSOC to issue revised guidelines that would give the banks more clarity on permitted activities. While President Donald Trump has talked about repealing the broader Dodd-Frank rules put in place after the crisis, there appears to be little political will for overturning the entire legislation, both for logistical reasons and a desire for Republicans not to look soft on Wall Street.

A readout from Monday’s FSOC meeting, held at the Treasury Department, indicated it was convened in part to “assess the efficacy” of the Volcker rule. The rule changes were part of a larger discussion centered on reviewing the “core principles for regulating the U.S. financial system.”

In an interview with CNBC earlier this week, Goldman Sachs CEO Lloyd Blankfein said there should be “much more flexibility” regarding trading rules.

“Market making is a very important public function of companies like ours,” he said.

Trading has been a mixed bag for banks. Goldman, for instance, saw a 6 percent decline in equity trading revenue as part of an overall disappointing first quarter. Bank of America, meanwhile, saw its fixed income trading revenue jump 10.7 percent.

Bank earnings overall in the first quarter rose 11.2 percent from the same period a year ago, according to Keefe, Bruyette & Woods.

———–

“Treasury Secretary Steven Mnuchin directed five regulatory agencies to review the so-called Volcker rule, which prohibits banks from trading for their own accounts, according to a Bloomberg report.”

setting up to fail again?

“The rule is designed to reduce risks at big financial institutions and head off the need for the kinds of bailouts needed during the crisis. However, banks complain that it has constricted their operations and reduced revenues.”

and what do the vampires think?

“In an interview with CNBC earlier this week, Goldman Sachs CEO Lloyd Blankfein said there should be “much more flexibility” regarding trading rules.”

of course..

401

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~ by seeker401 on May 30, 2017.

7 Responses to “Trump may help Wall Street banks get their trading groove back”

  1. Trump or not trump.. the debtors’ prison population are exploding..

  2. That’s like Al Capone saying the alcohol laws are too inflexible .

  3. Alexander Tabarrok, ‘The Separation of Commercial and Investment Banking: the Morgans vs. the Rockefellers’

    ” I argue that the separation of commercial and investment banking can be better understood as an attempt by the Rockefeller banking group to raise the costs of their rivals, the House of Morgan. 2 Both the House of Morgan and the Rockefellers, during the 1930s, wielded enormous political and economic power; so as to better understand the Morgan and Rockefeller rivalry, some background is in order.

    https://www.researchgate.net/publication/225681229_The_separation_of_commercial_and_investment_banking_The_morgans_vs_The_rockefellers [accessed May 30, 2017].

    THE TRUTH ABOUT GLASS-STEAGALL

    https://www.bitchute.com/video/dLxRUewl-F0/ – James C, great as usual!

  4. Reblogged this on World Peace Forum.

  5. Elon Musk pulls out out of Team trump because he doesn’t appear to play ball with Climate Change?

    http://www.smh.com.au/world/paris-climate-deal-elon-musk-threatens-to-quit-donald-trumps-advisory-council-20170531-gwhoym.html

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