Paul Volker, a former head of the federal Reserve Bank and now advisor to president Obama, wants to restrict proprietary trading among banks or bank holding companies. But when pressed he has no handle on what really describes proprietary trading activity.
(Want more information? Ask about Earl J Weinreb material on bank analysis,)
The government wants to give more power to the Fed but the agency has had lots of power up to now. The big problem is the possibility of any banking institution failing and then dragging down another.
Unfortunately, the regulators have historically never been good at this, and I doubt they ever will.
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