The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Re: Countdown to the next financial bomb Date:  10/7/2012  5:27 PM
Author:  SuisseBear Number:  405509 of 479767

BOTTOM LINE IMO is that firms will continue to see large trades that go bad by “surprise.” The odds of a regulatory answer seem low.

There will be one but the chances that it will be an effective one don't seem to be brilliant. Between US, UK, and Europe, there are now three different proposals on the table. The first sentence says it all:

AT LEAST the lawyers will be happy. Banks are already straining to come to terms with two reforms designed to reduce the risks that investment banks pose to other bits of the banking industry: America’s Volcker rule, which aims to ban proprietary trading (trading for their own profit) by banks; and the Vickers “ring-fence”, which proposes to force British banks to isolate their retail activities from trouble in their wholesale arms. Now European banks must gen up on a third proposal.

This one w