L ast week, financial markets were sent into a tailspin by the surprise announcement that
But for those who have followed the trends of financial deregulation,
We must put an end to this risky trading in our big banks before America gets caught up once again in the cycle of
Along with Sen.
Think of it this way: When your deep-fat turkey fryer catches fire on
The result is a convoluted 300 pages of draft regulatory guidance with huge loopholes. One of the most egregious is the portfolio hedge rule, which essentially allows a big bank to justify massive trading operations –like the one
Indeed, while we have seen the big banks start to dismantle their visible hedge fund-style trading operations, there is a strong possibility these operations will be hidden inside risk-management units, market-making operations and wealth-management divisions.
That would be a tragedy. Regulators should take the
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