FINANCIAL TIMES: The largest US banks were facing a new world order on Tuesday as regulators voted through the Volcker rule, which will make it harder for Wall Street to make risky gambles that could once again endanger the financial system.
The rule dramatically curbs the way banks do business, banning them from making bets using their own accounts in what is known as proprietary trading, and also holding their chief executives more accountable. But it gives regulators a lot of room for interpretation…
Some Wall Street law firms breathed a sigh of relief after seeing the final terms. “We think this is killing a fly with a hammer but we’re not going to relitigate that point now,” said one senior bank executive. “It’s clear that the technicians at the regulators made a sincere effort to improve it.” … (more)
