WASHINGTON (Reuters) – U.S. banks will no longer be able to make big trading bets with their own money after regulators finalized on Tuesday a rule shutting down what was a hugely profitable business for Wall Street before the credit crisis.
The measure known as the Volcker rule was a late addition to the 2010 Dodd-Frank Wall Street reform law and seeks to ensure that banks can’t make speculative trades that are so large and risky that they threaten individual firms or the wider financial system.
WASHINGTON (Reuters) – U.S. regulators toughened key sections of the Volcker rule’s crackdown on Wall Street’s risky trades on Tuesday as they finalized one of the harshest reforms after the credit meltdown.
The rule – named after former Federal Reserve Chairman Paul Volcker, who championed the reform – generally bans banks from proprietary trading, or speculative trading for their own profits.
WASHINGTON, Dec 10 (Reuters) – U.S. regulators are set on
Tuesday to approve a rule to rein in risky trading by banks, a
crucial part of their efforts to reform Wall Street and prevent
another costly taxpayer bailout.
The Volcker rule, named after former Federal Reserve
Chairman Paul Volcker, who championed the reform, prohibits
banks from betting on financial markets with their own money, a
practice known as proprietary trading.
WASHINGTON, Dec 8 (Reuters) – When U.S. regulators adopt the
Volcker rule on Tuesday, they will make good on a promise by
politicians to rein in banks’ ability to gamble with their own
The coordinated action by five separate regulatory agencies
is seen sparking a court challenge as Wall Street tries once
again to avoid one of the harshest elements of the
post-financial crisis crackdown.
WASHINGTON (Reuters) – Wall Street banks will get the final decision about a controversial ban on betting with their own money next week after years of debate, as three U.S. regulators each announced meetings to vote on the Volcker rule.
The U.S. Federal Reserve and two other finance watchdogs – out of a total of five who need to approve the rule – said on Tuesday they planned to hold public meetings on December 10, in line with what some of them had signaled.
WASHINGTON (Reuters) – The U.S. swaps regulator issued a temporary reprieve from its rules for foreign banks after closing a loophole that had allowed trading to continue outside regulated platforms in the United States.
Led by Gary Gensler, a former Goldman Sachs investment banker, the Commodity Futures Trading Commission has issued a slew of new requirements to get a grip on the $630 trillion swaps market after the devastating 2007-09 financial crisis.
WASHINGTON (Reuters) – Huge legal costs at JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and slowing demand for mortgages as interest rates rose caused the first decline in bank profits since 2009, a third-quarter regulatory update said on Tuesday.
Higher interest rates lowered the value of fixed income assets and sapped demand for mortgage refinancing, the Federal Deposit Insurance Corporation said.
WASHINGTON, Nov 26 (Reuters) – Net income for U.S. banks
declined 3.9 percent year-on-year in the third quarter, a top
federal banking regulator said on Tuesday, weighed down by
litigation costs and a sharp drop in mortgage demand.
A $4 billion increase in litigation expenses at one
institution was the main cause for the drop, the Federal Deposit
Insurance Corp said. The agency did not name the bank.
WASHINGTON, Nov 22 (Reuters) – Global financial watchdogs
should have more policy tools and powers over firms such as
hedge funds to counter the risk of a devastating run on
investment banks, the U.S. Federal Reserve’s top regulator said
Fed Governor Daniel Tarullo unveiled new details of the
central bank’s plans to require banks to hold more capital if
they rely heavily on raising short-term cash from other banks,
and also pushed regulators writing global rules to do more.
WASHINGTON (Reuters) – Global regulators should have more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday.
“There is a need to supplement prudential bank regulation with a third set of policy options in the form of regulatory tools that can be applied on a market-wide basis,” Tarullo said at a conference on shadow banking.