No proprietary trading for banks

[tar]

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

 

[DionysusToast]

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.

 

[kenttrader]

Mach Pro Trading in BC is seeking senior traders.

 

[gooseman]

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.

 

[oildaytrader]

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?name=News&file=article&sid=9123

 

[gooseman]

that article is on credit default swaps mate.

 

[DionysusToast]

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 ?

 

[gooseman]

write a complaint letter to the clinton administration.

if you want money from the banks buy shares.

 

[oildaytrader]

that article is on credit default swaps mate.

Exactly.It is about using the banking system to create money out of thin air, by using illegal subsidiaries to create the C D O bubble.

This is how the financial crisis was created by using illegal subsidiaries, and selling/writing C D O to these subsidiaries.The investment banks dumped these CDO to other instituitions.

Hedge Funds and CDO Investment Landfills: How professionals dump their toxic waste on you

http://www.marketoracle.co.uk/Article1444.html

 

[arabianights]

I think this is only going to apply to depostiory institutions. Seems fair to me... I'd be pretty pissed off if one of the building societies I'm a member of starting market making emerging sovereign CDS actually...

 

[gooseman]

any views fo your own ODT? Or is it just a cut n paste job?

 

[tar]

CDO

http://en.wikipedia.org/wiki/Collateralized_debt_obligation


CDS

http://en.wikipedia.org/wiki/Credit_default_swap

 

[blancspa]

I dont understand how people from Wall Street can fight people from Wall Street and that will benefit everyone not from the Wall Street?
Isinit contrarian to the game theory? lol

 

[DionysusToast]

I think this is only going to apply to depostiory institutions. Seems fair to me... I'd be pretty pissed off if one of the building societies I'm a member of starting market making emerging sovereign CDS actually...

That is my understanding and I absolutely agree with it.

 

[oildaytrader]

any views fo your own ODT? Or is it just a cut n paste job?

My opinion.This CDO bubble was the biggest con of all time, sole intention of robbing people's pension savings.It is the greatest crime of all time.

The Lloyds insurance syndicate had to put every dime of their own money to meet obligations.The taxpayers got robbed by the investment bankers.

Gooseman.You might as well start posting " give all the pensions to these investment banks to manage"

 

[dealer911]

In equity markets prop trading = front running.You can call it client facilitaton if you want but Goldmans prop desk arent super clever traders who consistently call the market right.. they are front runnning and ad nothing to the investment process... either you are a broker (no prop) or you are a counterparty.. either way Obama is right but for the wrong reasons.

 

[DionysusToast]

No - it wasn't a con - it really was legitimate stupidity.

There is a good documentary about a hedge fund manager who saw all the young pups selling these mortgage derivatives, telling him 'this'll never end'. It may be available on youtube,

He did a lot of research, talked to a lot of people and in the end he was convinced it was a house of cards.

He bet against the house. If my memory is right - he made out to the tune of $6 billion dollars for his fund.

I would highly recommend reading Nassim Taleb before coming to the conclusion that people really aren't that stupid.

 

[oildaytrader]

He bet against the house. If my memory is right - he made out to the tune of $6 billion dollars for his fund.

I would highly recommend reading Nassim Taleb before coming to the conclusion that people really aren't that stupid.

Nothing smart about that.The famous actresses sit on the right couch at the right time, they are actually so dumb.

Some dumb idiots got it wrong , a few got it right.

 

[DionysusToast]

perhaps - but I don't think it was a con - also ready "lecturing birds on flying" - this is an excellent piece of work and explains well how people let the quantatitive analysts convince them they were risking little.

 

[gooseman]

far, far too long of himself.