Obama to Propose New Rules on Banks’ Size, Proprietary Trading

That is not correct. Or more accurately, what they are bundling in as "prop trading" is not what the term generally means here on ET and bears little relation to "trading".

 

even if your statement were true which it is not you are making very serious errors in logic by assuming that the future is similar to the past and that on a risk adjusted basis your so called"prop trading' doesn't need to be controlled.

 

I'm all for it. Prop desks do not belong in banks. If you're a bank and get free money and backstops, you do not trade. Banking should be boring - like a utility company. Banking is for assisting the REAL economy - not some speculating thieves that don't have skin in the game. Banking should facilitate economic growth, not function like a parasite on the real world.

You want to trade, trade like I do - with your own f#$&ing money.

Then you will understand what the value of money is. And that's a lesson many people in Wall Street need to learn.

 

GS was given a Bank certification but trading like a pureplay hedge fund using deposits and free 0% PPT money.

If GS gets that license revoked, there goes the rally, the fat GS bonuses and profits.

 

Seconded.

 

as said earlier the details count. lets hope Obama starts making effective change.

 

YES.

Bulge bracket apologists, re-read this till you get it.

 

Thing is, this is not exactly "game-changing" governance here.

All it takes is a couple grand, a logo, and these banks will have reallocated their risk capital to some other anonymous division of their banks.

Besides. Obama is in bed with hedge funds- take D.E Shaw and Co, though they are a great model for quant trading success, they seemed to turn into a sellout firm making bets on political capital rather than on something in the real economy.

And Citadel seems to be trying to arrange itself as a replacement for a Wall Street investment bank, but is obviously screwing it up as his directors leave in droves.

So really here, the game hasn't changed for joe average on Main Street. For joe trader, it means good bye to liquidity for the time being (like there was any in 2009 anyways). The real squeeze even after sarbanes oxley is going to be on smaller firms.. as access to capital, new fees, and more regulation will make it impossible to run a trading business without moving out of the US.

 

Yes indeed. liquidity will get worse and worse. Scalping is dead in the small/mid cap space

 

Totally agree. Banking is about LENDING to business. If it won't do this what the f#$& is it any good for?