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Federal Reserve votes to ease rule aimed at preventing big banks from making risky financial bets

edited May 2018 in Off-Topic
The following is an edited excerpt from a current Washington Post article:

Big U.S. banks snagged a big victory Wednesday [as] the Federal Reserve approved sweeping changes to the “Volcker Rule,” established after the global financial crisis to prevent taxpayer-insured banks from making some risky financial bets. Banks, which have complained for years that the rule is too cumbersome and time-consuming, will gain new flexibility in deciding when a trade is too risky if the proposal is finalized.

Consumer advocates worry that even a slight easing of the standards could open the door for the type of risky trading that contributed to the near collapse of the economy a decade ago: “This proposal is no minor set of technical tweaks to the Volcker Rule, but an attempt to unravel fundamental elements of the response to the 2008 financial crisis, when banks financed their gambling with taxpayer-insured deposits,” [a] policy director at Americans for Financial Reform, a nonprofit advocacy group, said in a statement.

The vote brings Wall Street closer to securing one of its biggest victories yet under the Trump administration, which has made deregulation a top priority. The proposed changes to the rule are expected to boost the profits of some of the industry’s biggest players, including Goldman Sachs and JPMorgan Chase, industry analysts say.

File under: Fox & Hencoop

Comments

  • The more things change, the more they remain the same.
    Now they can start doing "God's Work" again.
  • Roger on that.
  • what could go wrong this time
  • How pessimistic. In addition to all of the stuff that went wrong last time I'll bet that they can find a couple of new things besides.
  • making America gag again
  • in retirement I would like not to go through 07-11 again for sure
  • Murphy's Law being what it is, 07-11 hit us soon after we retired. Damned good thing that we were prepared to ride it out. Others in our age bracket weren't, and never fully recovered.
  • good on you!
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