Banks about to get clarity on prop trading

|By:, SA News Editor

The CFTC sets a December 10 vote on the so-called Volcker rule which is supposed to ban banks from prop trading. It sounded so simple when politicians trumpeted it in 2010, but the reality of what banks do is slightly more complex and the text of the rule has mushroomed to 1K pages. GS, MS, JPM, BAC, and C, among others, will be eager to see what the regulations entail.

Any hopes for a watering-down of the rule likely ended with JPMorgan's $6B London Whale loss.

The SEC indicates it will act on the rule around the same time as the CFTC (3 other agencies must approve as well).

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