Volcker rule - A step in the right direction

[JTsyo]

USA Today

The rule would prohibit banks from buying and selling most investments for their own accounts. But there are broad exemptions: Banks can own securities when it's necessary to serve trading and investment banking clients, can own U.S. government debt, and can own securities that hedge other positions the banks legally own.

I'm not sure how much of the financial crisis was due to the banks making bets but from what I've seen the banks used the derivatives to hedge against their bad mortgages and that would still be allowed.

 

[OGOC]

Before the Volcker Rule, there was Glass-Steagall. Bill Clinton repealed it.

 

[ivwshane]

Before the Volcker Rule, there was Glass-Steagall. Bill Clinton repealed it.

Just to be accurate, it was repealed in 99 via the Gramm-Leach-Bliley Act, sponsored by three republicans and passed via a republican controlled congress.

There is plenty of blame to go around, the question is, who learned from the mistake and who is willing to correct the mistake!

 

[OGOC]

Just to be accurate, it was repealed in 99 via the Gramm-Leach-Bliley Act, sponsored by three republicans and passed via a republican controlled congress.

There is plenty of blame to go around, the question is, who learned from the mistake and who is willing to correct the mistake!

Just to be accurate, it was passed by a bipartisan Congress. And gladly signed by Bill Clinton.

 

[Oldgamer]

Before the Volcker Rule, there was Glass-Steagall. Bill Clinton repealed it.

Just to be accurate, it was repealed in 99 via the Gramm-Leach-Bliley Act, sponsored by three republicans and passed via a republican controlled congress.

There is plenty of blame to go around, the question is, who learned from the mistake and who is willing to correct the mistake!

They need to re-enact the Glass-Steagall act, and if I am not mistaken that is something Elizabeth Warren and others are trying to do.

 

[sactoking]

If there's any indication that Volcker is a do-nothing rule it's that the big banks aren't concerned about it at all. That means that either it is ineffective or they've already figured out how to get around it.

 

[nehalem256]

So does this apply only to banks, or to all financial institutions in general. Such as for historical reference (AIG, Lehman Brothers, Bear Sterns, Fannie Mae, Freddie Mac)

 

[Jhhnn]

Just to be accurate, it was repealed in 99 via the Gramm-Leach-Bliley Act, sponsored by three republicans and passed via a republican controlled congress.

There is plenty of blame to go around, the question is, who learned from the mistake and who is willing to correct the mistake!

Just to be accurate, it was passed by a bipartisan Congress. And gladly signed by Bill Clinton.

Those assertions are not mutually exclusive.

As ivwshane offers, placing blame is a lot less important than correcting past mistakes. The Volcker rule is a step in the right direction. 30 years of tax cut trickle down serial deregulation of the financial industry put us in the position where they fucked us, hard, in the greatest top down class warfare looting spree ever undertaken.

Given the opportunity, they'll do it every chance they get. It's who they are, plain and simple. We need to prevent that, rule out such possibilities if we're to have an economy capable of supporting the middle class as we would like. It's self defense, and anybody with a lick of sense should realize that.

 

[bshole]

I support federalizing banks altogether. Currently they keep their own profits and dump their losses on the taxpayers. It they are too big to fail, then just nationalize them and be done with it.

 

[Thump553]

A thousand page regulation that is going to be set upon by some of the most intelligent, highest paid sharks the Wall Street banks can hire. I hope it works but don't have much expectation it will.

I view the repeal of Glass-Steagal as very similar to Don't Ask, Don't Tell-the other major "bipartisan" action of the 90's. They both were well intentioned and had seemingly valid arguments to support them but time has proven them dead wrong.

Restoring a clear demarcation between federally insured banks and Wall Street investment "banking" activities is really the only way to go. If the Wall Street "banks" then blow it again, it's their money not ours at risk.

 

[dphantom]

Restoring a clear demarcation between federally insured banks and Wall Street investment "banking" activities is really the only way to go. If the Wall Street "banks" then blow it again, it's their money not ours at risk.

I would support this fully.

 

[Anarchist420]

Old dr. paul supports this and he was one of the few members of Lincoln's party who didnt vote for its repeal in '99.

 

[nehalem256]

I view the repeal of Glass-Steagal as very similar to Don't Ask, Don't Tell-the other major "bipartisan" action of the 90's. They both were well intentioned and had seemingly valid arguments to support them but time has proven them dead wrong.

Restoring a clear demarcation between federally insured banks and Wall Street investment "banking" activities is really the only way to go. If the Wall Street "banks" then blow it again, it's their money not ours at risk.

So how would AIG, Fannie Mae, Freddie Mac, Bear Sterns, Lehman Brothers have been affected by Glass-Steagal or the Volcker rule?