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

[mgmaggie]

Quote from wave:

Somebody stop this guy. What business does big brother have in prop trading. Sheesh. If Goldman has the $$$ and edge to do well in prop trading their own money, let them be. Why don't we stop Apple or Microsoft from making too much money while we are at it? What happened to free enterprise? Holy Crap.

Goldman was issued a Bank Licence and has never had to follow the same rules as the other Banks and has received Billions of US Citizen Funds while taking the other side of the trade.

People have lost their life savings with all the creative trading tools and with NO accountability to the public.

You are playing against a stacked deck and the Government is the Guarantor.

In the old days they would have hung you for stacking the deck.

 

[walter4]

Quote from rc822:

Once they institute the bank fees, then these rules on bank size/proprietary trading, and eventually a financial transaction tax, it will be game over!!!
Wasn't it last year when Obama stated that he envisioned a much smaller Wall Street, and indicated that in the future, it wouldn't play such a vital role in our economy. Well, he's on track to making that happen, isn't he?

Yes (and thank god!)

 

[zdreg]

you people are thinking about prop trading or high frequency trading. goldman is already planning for the next niche to make billions.
get the difference?

 

[rc822]

Quote from walter4:

Yes (and thank god!)

Won't happen though, as the Demo'craps' no longer have 60 votes in the Senate, courtesy of your liberal losers in MA. lol

 

[moneymonger]

Quote from rc822:

Won't happen though, as the Demo'craps' no longer have 60 votes in the Senate, courtesy of your liberal losers in MA. lol

I hope you are right! It is very telling that equity trading or investing had no bearing on the economic rut we are in. Actually,
the mkt has been one of the few bright spots in the economy
to date. Leave it to democrats to kill the one of the strong sectors
of the economy. I hope this gets shelved indefinitely along with all the other dem's bright ideas.

 

[moneymonger]

Quote from rc822:

Once they institute the bank fees, then these rules on bank size/proprietary trading, and eventually a financial transaction tax, it will be game over!!!
Wasn't it last year when Obama stated that he envisioned a much smaller Wall Street, and indicated that in the future, it wouldn't play such a vital role in our economy. Well, he's on track to making that happen, isn't he?

If this happens it will be time to move to Russia! At least there
an individual can enjoy some economic freedom!

 

[BondTrader50]

Quote from moneymonger:

I hope you are right! It is very telling that equity trading or investing had no bearing on the economic rut we are in. Actually,
the mkt has been one of the few bright spots in the economy
to date. Leave it to democrats to kill the one of the strong sectors
of the economy. I hope this gets shelved indefinitely along with all the other dem's bright ideas.

Obama is just trying to assist his state of the union speechwriter. Really, what could he possibly say that will draw an ovation? He'll rip on GS earnings, and announce this garbage proposal.

 

[Random.Capital]

Quote from belmondo:

do you think, this could help or he is out of his mind?

The devil is in the details, of which I didn't see any in the article.

The bottom line is is that the financial sector will always have first dibs on bailouts, and the reality of politics is that they will be nearly impossible to stop. So either strict, comprehensive regulation, or a strong size limits are mandatory to prevent more debacles like the past couple of years is necessary.

However, with that said, as long as voters insist on subsidized 30 year mortgages, there is a limit to regulatory effectiveness because so much money is flowing through a subsidized gate.

 

[Random.Capital]

Quote from wave:

If Goldman has the $$$ and edge to do well in prop trading their own money, let them be.

They don't. Goldman would be broke like Citi if it weren't for the AIG bailout.

That's why this is being discussed.

 

[wave]

Quote from Random.Capital:

They don't. Goldman would be broke like Citi if it weren't for the AIG bailout.

That's why this is being discussed.

The irony is that 90% of the big banks profits come from prop trading. So the 10% other activities is what needs to be controlled! Read between the lines.