No proprietary trading for banks

This is a discussion on No proprietary trading for banks within the General Trading Chat forums, part of the Reception category; This proposal would prohibit banks from running proprietary trading operations solely for their own profit and sponsoring hedge funds and ...

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Old Jan 21, 2010, 9:29pm   #1
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No proprietary trading for banks

This proposal would prohibit banks from running proprietary trading operations solely for their own profit and sponsoring hedge funds and private equity funds. How this will change the trading enviroment in the future ?

http://www.bloomberg.com/apps/news?p...d=aGwoMdcKbVFk

http://en.wikipedia.org/wiki/Proprietary_trading
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Old Jan 22, 2010, 12:11am   #2
 
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Re: No proprietary trading for banks

It will stop banks taking consumer deposits and gambling with them.

I will be happy to keep a little cash in the banks again once this happens. I don't mind my banks being mortgage companies, credit card companies, business loan companies. When it comes to using my cash on dodgy derivatives trades or playing the markets - no thanks.

Of course, in the short term, it could pull some liquidity out of the market.
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I cannot see., however why we should expect to find a "system" which will work in the stock market; surely the possibilities of profits for the student justify the time and effort required to learn market interpretation.

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Old Jan 22, 2010, 4:16am   #3
 
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Re: No proprietary trading for banks

Mach Pro Trading in BC is seeking senior traders.
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Old Jan 22, 2010, 6:44am   #4
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Re: No proprietary trading for banks

ill thought out junk form populist (no)bama.

how the hell can you stop prop positions when a bank is making a market in a security?

the hedge/private fund investment regulation is also garbage. banks have got to make their money work for stakeholders. hopefully obama and the wrecking ball that is Volcker will get laughed out of the Senate on this one.
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Old Jan 22, 2010, 8:27am   #5
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Re: No proprietary trading for banks

Quote:
Originally Posted by gooseman View Post

the hedge/private fund investment regulation is also garbage. banks have got to make their money work for stakeholders. hopefully obama and the wrecking ball that is Volcker will get laughed out of the Senate on this one.
Banks were using unregulated hedge funds illegally to create the cdo bubble.Most of these activities were illegal , by regulated banks using unregulated hedge funds on their books.

Unregulated subsidiaries like S I V S are illegal.

http://www.marketoracle.ws/index.php...ticle&sid=9123

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Old Jan 22, 2010, 8:37am   #6
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Re: No proprietary trading for banks

that article is on credit default swaps mate.
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Old Jan 22, 2010, 8:48am   #7
 
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Re: No proprietary trading for banks

Let's face it - if these banks were sharing these profits with the people whose money they were trading with, there would be no problem.

Here's what I want my bank to do:

1 - look after my money
2 - make loans to small businesses after carrying out proper due dilligence
3 - make mortgage loans to people that can afford to repay them
4 - run a credit card business
5 - run a proprietary trading desk, not telling me how they are gambling my money, risk it on complex derivatives trades they don't even understand themselved risking my entire deposit with ridculously huge leverage
6 - Use my tax money when they blow up
5 - not pay me a single penny of the profits they make from 5

Sound reasonable ?
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I cannot see., however why we should expect to find a "system" which will work in the stock market; surely the possibilities of profits for the student justify the time and effort required to learn market interpretation.

Humphrey B Neill - 1931
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