No. of Recommendations: 32
That indefatigable guardian of market integrity, the SEC (or at least SEC member Gallagher), weighs in on how it would be bad to limit the ability of banks to manipulate - er - I mean participate in equity markets.

U.S. regulators should “go back to the drawing board” and make extensive revisions to their proposed ban on banks’ proprietary trading, Securities and Exchange Commission member Daniel Gallagher said in a speech...

Lawmakers included the Volcker rule in the Dodd-Frank Act to limit risky trading by banks that benefit from federal deposit insurance and other government protections.

The Volcker rule would undermine buoyant equity prices resulting from the banks' high-frequency trading.

As buyers of first resort, anything that limits the ability of banks to use their clients' re-hypothecated cash to move prices, would tend to leave markets in the hands of traders who don't have sources of unlimited free funds to support their bids.

By removing the ability of the banks to distort equity prices (as they can do in the same manner that the Fed distorts Treasury prices), the Volcker rule would surely disrupt the way crony capitalism works.

Thank goodness we have watchdogs looking out for the bank's - er - I mean the ordinary investor's - best interest.

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