November 7, 2012 |
Whatever chance Wall Street had of seeing the Dodd-Frank financial reform law dismantled died with Mitt Romney's election-night concession speech. The Republican nominee railed against the far-reaching legislation, promising to repeal it once he took office. But with President Obama clinching a second term, analysts say the financial services industry must come to terms with the fact that Dodd-Frank will become firmly entrenched. "Obama has the election behind him and the worry about alienating...
October 25, 2012 |
Democratic lawmakers on Thursday criticized regulators for taking too long to finalize the Volcker Rule, a controversial provision passed in 2010 aimed at restricting banks from making risky investments with their own money. People familiar with the matter say a rift has developed between bank regulators and the nation's top markets regulator over how the rule should be shaped. That could delay a final draft beyond the end of the year, an informal deadline set by the Obama administration, those people said.
October 18, 2012 |
The biggest U.S. banks have released their latest quarterly financials, and the results for the third quarter were, well, so-so. Shares of major financial companies are up a meager 1.2 percent since the start of earnings season. But that "meh" picture of the health of the major banks masks some deep turmoil within. And what the reports have in common is that they show how the biggest global banks still haven't figured out what their business should be in a post-crisis world. The headlines during the...
July 12, 2012 |
The limits of regulation are well known to Gary Gensler. As a core member of President Bill Clinton's Treasury Department, Gensler, with his colleagues, leapt to transform the financial markets through legislation, in the wake of an Asian currency crisis that threatened the global financial system. Years later, they realized they had made some flawed assumptions. "Looking back now, knowing what we know now about the markets as they developed, those of us that were involved in the late '90s ought to have done more to protect...
June 13, 2012 |
IT'S BEEN ABOUT a month since JPMorgan Chase, the nation's largest commercial bank, announced a $2 billion loss in a dubious series of trades that were supposed to hedge against risks. The embarrassment for the bank and its chief executive, Jamie Dimon, was acute: Mr. Dimon had not only previously dismissed concerns about the bank's activities as "a tempest in a teapot," but he had also opposed efforts to regulate such trades more tightly, arguing that restrictions would do more harm than good.
May 31, 2012 |
Washington policymakers should tighten the Volcker rule's ban on banks' speculative trades by reining in an exemption for hedging activity, former U.S. bank regulator Sheila C. Bair said Thursday. Speaking at a roundtable hosted by the U.S. Commodity Futures Trading Commission, the former chairman of the Federal Deposit Insurance Corp. said that exemptions to the Volcker rule should be strictly defined and that banks should have to publicly disclose their hedges. "I would tighten the rule," she said.