[quote=briansd1][quote=flu]
Come on, do you really think people who are protesting against corporate greed, rich people’s excesses are really protesting FOR financial frugality??? [/quote]
How about some regulations to prevent banks from dumping toxic products on the American people at usurious rates, regulations championed by Elizabeth Warren. If those regulations result in less credit available to those who can’t afford the credit, then all the better. We would then end up with more frugality.[/quote]
Won’t work…Because Wall Street is always smarter than Government….
Goldman, Morgan Stanley May Shed ‘Bank’ Status: Analyst
Goldman Sachs (NYSE:GS – News) and Morgan Stanley (NYSE:MS – News) may shed the “bank holding company” classification in order to skirt the Volcker rule banning propriety trading with the firm’s own capital, according to Susquehanna Financial Group analyst David Hilder.
Goldman and Morgan Stanley both became bank-holding companies during the 2008 financial crisis in order to be eligible for emergency Fed lending. But the new rule, which would limit trading when the bank’s own money is a risk, would deal a major blow to one of Wall Street’s most profitable businesses.
“The regulators have proposed a massive new compliance burden on banks to prove that their market-making activities are just that and not proprietary trading in disguise,” wrote Hilder in a note to clients. “There will be large additional costs imposed on banks as market-makers that will not apply to market-makers not owned by banks. We would expect that to draw capital to non-bank market-makers, and cause Goldman Sachs and Morgan Stanley to examine whether it makes sense for them to exit the banking system.”
The Dodd-Frank act provision named for former Fed Chief Paul Volcker was released Tuesday in a rather lengthy form by the Fed and the FDIC for public comment. The Securities and Exchange also agreed Wednesday to put the new rules out for public comment.
“Only in Washington could a simple idea-ban banks that accept insured deposits from short term trading for their own account-become a proposal that runs to 298 pages and asks for comments on 394 specific questions,” wrote Hilder. “We would add to positions in positive-rated names that could potentially exit the banking system, GS and MS.”
This exit may draw the ire of everyone from legislators to the Occupy Wall Street crowd as Goldman and Morgan Stanley changed their status during the height of the financial crisis following the collapse of Lehman Brothers in Sept. 2008 in order to get access to emergency funds not provided for non-commercial banks.
As always,
Banks 1: Government 0 : American People 0
I’m laughing out of my ass because some folks in our government think they can control the banks…The banks are the ones hustling the government, not the other way around…..
