Wednesday, December 4, 2013

More than you know, more than you know

The bank regulators--who, as kids, sat in the front rows of the classrooms, the better to politely get the teachers' approval--will know this how?
Under the final rule, regulators are expected to closely track trading activities with an eye on whether certain trades known as hedges are designed to post a profit rather than offset risks that accompany trading with clients. The finished version of the Volcker rule is likely to require that hedges be designed to reduce specific risks, according to a portion of the proposed rule reviewed by The Wall Street Journal.
Meanwhile, the former smart-alecks from the back of the room, who have their sights set on making millions in financial services will sit there, saying, 'Yes, sir. As you want, sir.', to the $80,000 a year men.

Sure, sure, that's likely to play out as the politicians are promising;
"We'll soon find out if the final regulations follow the law and create the strong safeguards needed to prevent future financial disasters," said Sen. Carl Levin (D., Mich.), who helped spearhead the rule in Congress with Sen. Jeff Merkley (D., Ore.). 
Maybe not 'soon', but they'll find out all right. So will we all.

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