J.T
09-25-2011, 02:37 PM
The regulatory agencies in charge of finalizing some of the most controversial rules mandated by the financial reform law are leaning toward making them looser and more favorable to banks and other traders, according to recent reports in the financial press.
As we noted (http://www.propublica.org/blog/item/dodd-frank-delays-bring-temporary-relief-for-banks) in June, federal regulators were still puzzling over how restrictive the ban on proprietary trading—banks trading on their own behalf—should be, given that banks are still allowed to hedge against risks. The Office of the Comptroller of the Currency has argued for banks to be given more leeway in what types of trades would be permitted as hedges under the rule, but critics charge that banks could use the opportunity to take more risks rather than hedge against them.
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Meanwhile, the federal Commodity Futures Trading Commission has drafted a final rule that reportedly backs down (http://www.reuters.com/article/2011/09/22/us-financial-regulation-limits-idUSTRE78L11P20110922) on other key provisions intended to limit (http://www.cftc.gov/LawRegulation/DoddFrankAct/Rulemakings/DF_26_PosLimits/index.htm) excessive speculation by large banks and commodities players
http://www.propublica.org/blog/item/regulators-loosen-limits-on-risk-in-latest-drafts-of-dodd-frank-rules
Yes, that so fun, we can't wait to do it again...
As we noted (http://www.propublica.org/blog/item/dodd-frank-delays-bring-temporary-relief-for-banks) in June, federal regulators were still puzzling over how restrictive the ban on proprietary trading—banks trading on their own behalf—should be, given that banks are still allowed to hedge against risks. The Office of the Comptroller of the Currency has argued for banks to be given more leeway in what types of trades would be permitted as hedges under the rule, but critics charge that banks could use the opportunity to take more risks rather than hedge against them.
...
Meanwhile, the federal Commodity Futures Trading Commission has drafted a final rule that reportedly backs down (http://www.reuters.com/article/2011/09/22/us-financial-regulation-limits-idUSTRE78L11P20110922) on other key provisions intended to limit (http://www.cftc.gov/LawRegulation/DoddFrankAct/Rulemakings/DF_26_PosLimits/index.htm) excessive speculation by large banks and commodities players
http://www.propublica.org/blog/item/regulators-loosen-limits-on-risk-in-latest-drafts-of-dodd-frank-rules
Yes, that so fun, we can't wait to do it again...