Trading Restriction to cut GS price in half

Discussion in 'Trading' started by apitrader, Sep 17, 2009.

  1. This could cut GS and MS stocks in half if congress picks up this proposal.

    Volcker Calls for Restricting Banks' Risk, Trading Activity

    Paul Volcker on Wednesday said banks should operate in a much less risky fashion, including not making trading bets with their own capital, comments that could provoke intensified debates over the future of financial regulation.

    Mr. Volcker, who currently is chairman of the White House's Economic Recovery Advisory Board, suggested banks should be restricted to trading on their client's behalf instead of making bets with their own money through internal units that often act like hedge funds.

    Mr. Volcker said he would appear before Congress next week to discuss his views in more detail.
  2. zdreg


    no reason to come to this conclusion.
    Goldman has adjusted successfully to all changing circumstances.
  3. jprad


    Volcker's comments are aimed at frankenbanks, not unbanks like GS and MS.
  4. sprstpd


    Didn't GS and MS become bank holding companies?
  5. If the GSE's (Fannie and Freddie) take the A paper and tell the street to take subprime and the jumbo loans perhaps the gov't should look in the mirror at their own risk profile.
  6. jprad


    A scam to get Fed money, nothing more.

    You're never going to see any GS or MS branches in town, much less credit cards or other real banking functions coming from them.
  7. sprstpd


    That's not my point. If you are talking about regulating the banking industry you are talking about regulating GS and MS now. I'm sure they will bend the rules so that they don't apply to them, but in theory they should.
  8. GS should go private....

    Then partners' skin in the game will happen.....and accomplish what Volcker sees....

    As should MS, JPM...etc...and like firms....


    Skin in the game....solves the issue....

    This is easy....
  9. jprad


    The old-timer partners never wanted to go public in the first place.

    They were out-voted by the young rocket scientists they had hired who were more focused on seeking short-term alpha.

    Easy to say, impossible to do.