Thursday, December 13, 2012
Trading Losses: A Little Perspective on a Large Problem
By James R. Barth, Senior Finance Fellow, Milken Institute; and Donald McCarthy, Consultant, Econ One Research
The Volker Rule prevents banks from engaging in proprietary trading. However, one fact cannot be ignored: the majority of large trading losses of the past 20 years occurred at non-banks who will be untouched by the Volker Rule. The more regulators limit banking activities, the more they may create incentives for these same activities to move to nonbanking firms. The authors explore the potential for perverse results from the Volker Rule.
Download the full article here.
From the December 2012 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
The Volker Rule prevents banks from engaging in proprietary trading. However, one fact cannot be ignored: the majority of large trading losses of the past 20 years occurred at non-banks who will be untouched by the Volker Rule. The more regulators limit banking activities, the more they may create incentives for these same activities to move to nonbanking firms. The authors explore the potential for perverse results from the Volker Rule.
Download the full article here.
From the December 2012 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.
Labels: Barclay Insider Report, Barclay Insider Report Guest Article
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