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 (Reuters) – Wall Street banks will need to prove to regulators their trades are done on behalf of clients or to protect against market risks and are not speculative bets for their own profit, under the final version of the Volcker rule released by U.S. officials on Tuesday.
The rule – which five regulatory agencies are expected to adopt later in the day – appears to more sharply crack down on so-called proprietary trading than when it was proposed two years ago, likely disappointing banks hoping for more leeway.
WASHINGTON (Reuters) – Three Wall Street trade groups sued the U.S. Commodity Futures Trading Commission on Wednesday to rescind tough overseas trading guidelines they fear could hurt markets and cut profits.
The groups accused the CFTC in their lawsuit of circumventing a more rigorous rulemaking process by issuing its cross-border regulations as “guidance.”
WASHINGTON (Reuters) – U.S. banks are likely to cut back on risky short-term funding if markets believe bankruptcy not bailouts await them, a top Federal Reserve is set to tell lawmakers on Tuesday.
Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, is expected to tell Congress that the biggest U.S. banks have relied on raising short-term cash because they have expected the government to step in if their strategies failed.
WASHINGTON (Reuters) – The Federal Reserve on Monday said it approved new capital plans by Goldman Sachs and JPMorgan Chase, after initially ordering the banks to fix flaws in their capital planning processes.
The plans are part of the stress-testing regime meant to determine how the biggest U.S. banks would fare in a financial meltdown.
WASHINGTON/NEW YORK (Reuters) – Auto lender Ally Financial Inc (ALLY_pb.N: Quote, Profile, Research, Stock Buzz) moved a step closer to paying back the U.S. government on Friday after the Federal Reserve approved the company’s 2013 capital plan.
With the Fed’s approval, Ally can proceed with a private share sale it had announced in August.
WASHINGTON (Reuters) – Big banks can still borrow more cheaply than competitors and should face tougher rules, the prospective new head of the U.S. Federal Reserve told lawmakers on Thursday.
Large banks may have an edge because markets think they have government backing in times of crisis, said Janet Yellen, President Barack Obama’s choice to be the Fed’s new head, unveiling some new steps the central bank could take to encourage those firms to downsize.
WASHINGTON, Nov 6 (Reuters) – Debt collectors using text
messages and social media to pursue delinquent borrowers could
come under new scrutiny as the U.S. consumer financial watchdog
warns of new rules as part of a crackdown on the collection
The Consumer Financial Protection Bureau said on Wednesday
that before it formally proposes any rules, it wants to hear how
collectors verify borrowers’ information and communicate with
WASHINGTON, Oct 30 (Reuters) – The U.S. House of
Representatives voted on Wednesday to scale back a much-debated
provision of the Dodd-Frank Wall Street reform law, handing bank
lobbyists a token victory in their fight against the tougher
Big banks and their allies in Congress have been pushing to
undo part of the law that calls for walling off risky
derivatives trading by investment banks from government
backstops such as deposit insurance. They say the rule is
unnecessary and would be expensive for banks.