U.S. banking regulators ease rules around firm investments, internal trading

[turbinetree]

Source: Reuters

Pete Schroeder
2 MIN READ

WASHINGTON (Reuters) - U.S. banking regulators on Thursday unveiled new rules that will make life easier for large banks with complex trading and investment portfolios.

One rule wraps up a long-running effort by Republicans to overhaul the so-called “Volcker Rule,” clearing the way for banks to make larger investments in riskier vehicles like venture capital funds.

The second relieves banks of having to set aside cash to safeguard derivatives trades between affiliates within the same firm. It gives a win to big global banks that had lobbied for the relief, and the industry estimates it could free up as much as $40 billion in previously reserved cash.

The Federal Deposit Insurance Corporation, Federal Reserve, Office of the Comptroller of the Currency, Securities and Exchange Commission and the Commodity Futures Trading Commission share responsibility for the Volcker rule. The FDIC, OCC and Fed are primarily responsible for the rules on “inter-affiliate” swaps. Each agency is expected to formally approve the changes.

Read more: https://www.reuters.com/article/us-usa-banks-trading/u-s-banking-regulators-ease-rules-around-firm-investments-internal-trading-idUSKBN23W2AJ?il=0

---

-snip-

What could possibly go wrong.....................

These yahoo's can do whatever they want and think "again" that the tax payers are going to bail them out on these fucking derivatives again, because they will sour and someone is going to have to pay................... .

[Newest Reality]

1. That's just like...

The typical, exclusive welfare/socialism built into the system. All that matters most is who is getting it.

We are looking at another huge nosedive that will be deeper and more traumatic than the last ones. It won't take long to become more evident and by next year, it will be overwhelming. The risks are alright for now, so it seems.

No, I don't believe there is any "recovery" in sight. The last boom was really about the upper tiers of the country, now we are seeing that a crises reveals the lower tiers to be tapped out and devastated and I wonder how more, future bailouts for wealth and industry will serve to fuel and fan the fire.

[ashredux]

2. Wow....double whammy... COVID and 2008 Redux all at one time....

[PSPS]

7. 2008 redux "plus"

The recession in 2008 took under 1% out of the GDP. IMF's latest forecast (yesterday) is that this covid/trump recession will kick it down a whopping 8% with double-digit unemployment at least through 2021.

[soothsayer]

3. Jeezus gawd

[no_hypocrisy]

4. Yay! More derivatives!

[Bev54]

5. Unfrigginbelievable

I am so glad I live in Canada where our banking system is highly regulated and they did not get hit like the US did. Some of the safest stock to put your money in is Canadian Banks

[bucolic_frolic]

6. In an era of permanent QE and limitless stimulus

are rules even relevant? Who are they kidding? Here comes the cavalry, Fed to the rescue!

[NurseJackie]

8. Here we go again.

[kimbutgar]

9. When the stock market collapsed in 87 they put these rules in and reformed them in the mid 90's

Now they are doing away with the rules that stabilized the market.

They must know their days are numbered and are rushing though this robbery before they get caught.

[elleng]

10. clearing the way for banks to make larger investments in riskier vehicles

[Firestorm49]

11. Here we go again.

[DEbluedude]

12. "...it could free up as much as $40 billion in previously reserved cash."

And they bitch about LOOTERS!!!