Paul Volcker stood to President Obama's right for a short statement on finance-industry...

Paul Volcker stood to President Obama's right for a short statement on finance-industry restrictions considered Volcker-friendly (and some say not a moment too soon). His "limit the scope" proposals would separate banks from hedge funds, P-E funds or prop trading operations (for the first time). "Limit the size" plans would restrict market share of liabilities at the biggest firms.

Comments (12)
  • DW Reid
    , contributor
    Comments (126) | Send Message
    Call me cynical, but this happens AFTER the MA elections? Also, I would bet against this passing in any form but the most diluted way. GS unwinds itself from being a hedge fund? Unlikely.
    21 Jan 2010, 12:01 PM Reply Like
  • Archman Investor
    , contributor
    Comments (3320) | Send Message
    For anyone not drunk on the kool-aid of the MSM the market is not falling because "investors" are getting out.


    The market is falling because the banks, FED partner banks (the ones who literally own the FED, and yes they do own that private corporation) such as GS, MS, C, BAC, et al, are in a full blown panic right now over this regulation.
    They are pulling their money out, the money that they were given by the FED, etc, and are locking in their profits to at some point enrich themselves, knowing full well now what is coming down the pike.
    That is why the market is going down. Period.
    The markets rise was a phony one based on FED money being lent out at 0% and used to make big $$ in the market by the HFT's and others on the GS prop desks etc.


    Though not an active political figure myself, this is exactly what needs to happen. We need to flush these people down the toilet, limit their ability to manipulate the markets, and get REAL average Americans back in the market (though it will be much lower due to all this, but that is all good when looked at from a longer time frame).


    I say good riddance to the investment banks and their manipulative ways and hello to massive, restrictive regulation that limits the banks doing so called "God's work".
    21 Jan 2010, 12:07 PM Reply Like
  • Hendershott
    , contributor
    Comments (1758) | Send Message
    actually, the market is going down because traders think the investment banks would pull their money out. the investment banks are likely doing not a lot this morning other than the usual high frequency computer driven trading. about 60-70% of the volume on any given day. As to Obama's proposals, the lobbying machine is cranking up. None of the administration"s proposals have survived the lobbyists yet and this one isn't likely to either. DH
    21 Jan 2010, 12:39 PM Reply Like
  • Northern Dancer
    , contributor
    Comments (733) | Send Message
    Archman, I couldn't have said it better myself, and I'm the most cynical and angry guy on the planet when the topic turns to the big piggy bankers. Great post!
    21 Jan 2010, 02:38 PM Reply Like
  • Arcmor
    , contributor
    Comments (29) | Send Message
    It's about time....


    GS does not unwind itself from being a hedge fund. it will have to unwind itself from being a bank. It can't do prop trading that is in direct conflict with their research and their investment banking (with intimate/insider knowledge of the companies) by front-running and shafting their own clients.


    Don't cry for GS.
    21 Jan 2010, 12:12 PM Reply Like
  • nightfly
    , contributor
    Comments (1015) | Send Message
    About time, now let's see some follow-through or will this just be more "whitewashing"?


    I have little faith in our govt's to do the right thing and go against the banks best interests.
    21 Jan 2010, 12:12 PM Reply Like
  • lower98th
    , contributor
    Comments (1411) | Send Message
    This approach seems incompatible with the continued nomination of Bernanke at the Fed, and keeping Geithner at Treasury.
    21 Jan 2010, 12:12 PM Reply Like
  • Sumit Batra
    , contributor
    Comments (65) | Send Message
    finally obama is talking, but a year late.
    21 Jan 2010, 12:13 PM Reply Like
  • Tony Petroski
    , contributor
    Comments (6356) | Send Message
    Why does Mr. Volcker continue to participate in these shows? Can't he stay away a year or two and write a memoir?
    21 Jan 2010, 12:19 PM Reply Like
  • Michael Clark
    , contributor
    Comments (11586) | Send Message
    I agree it's late. Geithner and Bernanke both need to go, Obama needs to flush them and their inflationary creed before the 2010 election becomes a disaster for his party. Obama wants to be Abraham Lincoln, but he might have to become Teddy Roosevelt.
    21 Jan 2010, 12:22 PM Reply Like
  • Sumit Batra
    , contributor
    Comments (65) | Send Message
    hopefully obama will bite not bark
    21 Jan 2010, 12:50 PM Reply Like
  • Arcmor
    , contributor
    Comments (29) | Send Message
    Today's market action reminds me of last march when there were rumors of bank nationalization. The market relentlessly went down for nearly 2 weeks until there was unequivocal reassurance by the Fed that nationalization (no matter how much the left clamored for) was clearly out of the cards. Not only that, the government ended up giving another round of bail-out money and relaxation of mark-to-market accounting. Wall street uses the market to force hands of the regulators to make them do what is in banks' best in interest using stock market as a weapon. I suspect a similar thing is going on right now. There is simply no basis for the people to sell vast majority of stocks (like the tech companies, for example) because the bank behemoths have to become smaller. But it will happen until Uncle Sam cries Uncle. (Barney Frank apprently already did.)


    Bark is all to be expected. They do not possess teeth....
    21 Jan 2010, 03:47 PM Reply Like
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