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(The Street)   The Volcker Rule, intended to prevent banks from gambling with customers' money, is being weakened after banks complained they can't gamble with customers' money   (business-news.thestreet.com) divider line 52
    More: Obvious, Volcker Rule, collateralized loan obligation, community banks, big and small, governors, needs  
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3431 clicks; posted to Main » on 16 Jan 2014 at 10:28 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2014-01-16 09:32:00 AM  
The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.
 
2014-01-16 10:07:53 AM  

Lucky LaRue: The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.


i.imgur.com

media.tumblr.com

and so on.
 
2014-01-16 10:16:35 AM  
The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.

Oh somebody is gonna get bites on this one real bad. Somebody. And I think I know who ..
 
2014-01-16 10:28:39 AM  
DOOMED
 
2014-01-16 10:30:13 AM  

lockers: DOOMED


designagencies.com.au
 
2014-01-16 10:30:58 AM  
We just had an article over in the Business tab that said that JP Morgan made over $5 billion in profits for the QUARTER even after being hit with settlements with the government of over a Billion dollars total.

Tell me again how they can't compete?
 
2014-01-16 10:34:35 AM  

Lucky LaRue: The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.


Do you remember that Bush started the bank bailouts and that conservatards were all up in arms blaming the bailouts on Fartbongo.
 
2014-01-16 10:35:53 AM  
The capitalists are actively trying to bring back the tumbrels.
 
2014-01-16 10:36:54 AM  

vonmatrices: We just had an article over in the Business tab that said that JP Morgan made over $5 billion in profits for the QUARTER even after being hit with settlements with the government of over a Billion dollars total.

Tell me again how they can't compete?


Obviously, other countries that allow the financial sector to gamble with peoples money are killing banks like JPM.............................

/who cares what happens to the people on the losing end........
 
2014-01-16 10:41:22 AM  
"Those who fail to learn form history are destined to repeat it."

Of course, its the average person who will foot the bill (again) when it all comes crashing down (again).
 
2014-01-16 10:46:17 AM  
Fox in charge of hen house?
Yup, all is well here. Move along.
 
2014-01-16 10:48:19 AM  

vonmatrices: We just had an article over in the Business tab that said that JP Morgan made over $5 billion in profits for the QUARTER even after being hit with settlements with the government of over a Billion dollars total.

Tell me again how they can't compete?


That's the big word. They covered all their operating costs and settlements and court fees and this and that and the other and still came out that much on top.
 
2014-01-16 10:49:20 AM  

Prophet of Loss: "Those who fail to learn form history are destined to repeat it."

Of course, its the average person who will foot the bill (again) when it all comes crashing down (again).


"Form history"? You mean like, your loan is denied because you used form Revision B, and the current revision is D?
 
2014-01-16 10:50:58 AM  
Sound economic investments like Sears or Rite Aid? Has anyone entered one of those stores recently? I walked through a Sears a week before Christmas (to get to a parking lot) and it was a ghost town.
 
2014-01-16 10:52:43 AM  
What could possibly go wrong?
 
2014-01-16 10:54:15 AM  

Lucky LaRue: The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.


You doublespeak plusgood.
 
2014-01-16 10:55:23 AM  
If I was a bank, I would hate the Volker rule also.

Before that, they could invest (gamble) your deposits in the most profitable ways (riskiest). If the investment worked out, they kept all the profit (winnings). If it failed, then the government (taxpayers) would step in and replace the deposits so the people don't lose faith in banks and initiate a bank run.

Seriously though, any account that enjoys the backing of the FDIC (taxpayers) should be subject to oversight to prevent gambling. If you deposit your money in an uninsured investment account, then feel free to spin the wheel.
 
2014-01-16 10:55:41 AM  

elysive: Sound economic investments like Sears or Rite Aid?


Now that Sears is run by John Galt, I'm sure it will turn around any now. Yup, any day now.
 
2014-01-16 10:57:45 AM  

Lucky LaRue: The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.


That's right, dammit!  If other countries can risk their economies in risky, sometimes shady, financial dealings, privatize their gains while socializing their losses, and have the full faith and credit of their governments to bail them out because they are too big to fail why shouldn't we?  We're better than they are after all!
 
2014-01-16 11:07:28 AM  
The Volker rule isn't that helpful unless it's also accompanied by a more-than-zero% interest rate from the Fed.

It's great to have your deposits in FDIC-insured banks be protected from stupid risks, but under the current zero interest rates, you're a fool to keep your money there.
 
2014-01-16 11:08:11 AM  

SonOfSpam: Prophet of Loss: "Those who fail to learn form history are destined to repeat it."

Of course, its the average person who will foot the bill (again) when it all comes crashing down (again).

"Form history"? You mean like, your loan is denied because you used form Revision B, and the current revision is D?


cute
 
2014-01-16 11:08:45 AM  

thurstonxhowell: elysive: Sound economic investments like Sears or Rite Aid?

Now that Sears is run by John Galt, I'm sure it will turn around any now. Yup, any day now.


There are several fascinating articles on how Eddie Lambert is a huge disciple of Ayn Rand, and has been using her principles to drive Sears straight into the ground.

I highly recommend them to anyone who likes business.
 
2014-01-16 11:15:41 AM  
Wait a minute, I'd like to put my diaphragm in before you start.
 
2014-01-16 11:16:52 AM  
Look, lie back, relax your annus, and think of America as the hard too big to fail cock of those Job Creators pounds into your ass. You could have voted Democrat, but did not, you could have voted old gaurd GOP insted of Tea Party, but you did not, so now we all just have to lie back and enjoy being raped ... again.
 
2014-01-16 11:27:19 AM  

Private_Citizen: thurstonxhowell: elysive: Sound economic investments like Sears or Rite Aid?

Now that Sears is run by John Galt, I'm sure it will turn around any now. Yup, any day now.

There are several fascinating articles on how Eddie Lambert is a huge disciple of Ayn Rand, and has been using her principles to drive Sears straight into the ground.

I highly recommend them to anyone who likes business.


When did he take over?

I've been meaning to make a "Sears - Going Galt since 20XX" pic...
 
2014-01-16 11:28:23 AM  
FTFA:
"A number of high profile companies access the CLO market, including  Sears Roebuck,SuperValuJ.C. Penney  and  Rite Aid."

Umm.

/With linky goodness to what these companies have in common.
//Republicans need to stop sabotaging the economy.
 
2014-01-16 11:40:29 AM  

mithras_angel: Private_Citizen: thurstonxhowell: elysive: Sound economic investments like Sears or Rite Aid?

Now that Sears is run by John Galt, I'm sure it will turn around any now. Yup, any day now.

There are several fascinating articles on how Eddie Lambert is a huge disciple of Ayn Rand, and has been using her principles to drive Sears straight into the ground.

I highly recommend them to anyone who likes business.

When did he take over?

I've been meaning to make a "Sears - Going Galt since 20XX" pic...


Despite not having the official title of CEO at the time, Mr Lambert really took over when he masterminded the merger between Sears and K-Mart in 2005. So, "going Galt since 2005".

A great article is the one in business week titled:
"At Sears, Eddie Lampert's Warring Divisions Model Adds to the Troubles"

Business students will probably study this melt down for decades.
 
2014-01-16 11:48:35 AM  
The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.


They just siphon money out of the 1st world to 3rd world tax shelters (sorry Luxemburg and Ireland) anyway.
 
2014-01-16 11:52:01 AM  

Private_Citizen: Business students will probably study this melt down for decades.


Unfortunately the conclusion will be that the implementation of Randian principles wasn't pure enough.
 
2014-01-16 12:00:34 PM  

cefm: The Volker rule isn't that helpful unless it's also accompanied by a more-than-zero% interest rate from the Fed.

It's great to have your deposits in FDIC-insured banks be protected from stupid risks, but under the current zero interest rates, you're a fool to keep your money there.


I disagree with your first statement, only because banks are paying out negligible interest to their account-holders while benefiting from risky behavior. So in a low interest rate scenario, the Volcker rule at least forces the incentives to be somewhat aligned. Thi is also why credit unions are our friends. I found out my wife was getting a whopping 0.01% APY from Bank of America, and made her join my local credit union (after shaking her, of course) where they're paying almost 2% APY. Not great, but not too shabby for the liquidity we need.
 
2014-01-16 12:03:32 PM  

dragonchild: Private_Citizen: Business students will probably study this melt down for decades.

Unfortunately the conclusion will be that the implementation of Randian principles wasn't pure enough.


Conservatism can never fail. It can only be betrayed.
 
2014-01-16 12:09:17 PM  
Remind me again how shiatting where you eat is a good idea?
 
2014-01-16 12:23:05 PM  

NathanAllen: Remind me again how shiatting where you eat is a good idea?


shiatting where I eat bad idea. shiatting where the poors eat? Best idea ever, well it was until farking Obamacare was enacted, because shiatting where they eat means they get nasty diseases and die off alleviating the over abundance of labor and general unpleasantness of those who are not 1%ers.

/I need a stamp that says "FARK THE POOR" that way I can stamp it on all my 100 dollar bills.
 
2014-01-16 12:32:18 PM  

Lucky LaRue: The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.


How droll.
 
2014-01-16 12:32:33 PM  

NathanAllen: Remind me again how shiatting where you eat is a good idea?


Well, there's less walking involved which I think is an action (or inaction!) that any God fearing, red blooded American can get behind.
 
2014-01-16 12:38:32 PM  

NathanAllen: Remind me again how shiatting where you eat is a good idea?


Well, it will ensure that your intestinal flora remain seeded with the proper organisms. Also, a communal "Shiat and Dine" would strengthen the immune system of the users against each other's diseases. It might also strengthen the immune system overall as it will have to deal with an increase in pathogens from an early age.
 
2014-01-16 01:05:45 PM  
TFA: "If the price of CLO debt securities were to drop by only 10%, banks holding CLO debt securities would face potential cumulative losses of up to $7 billion"

Math hyperbole. If they dropped 100%, they'd lose 70B, OMG; if they dropped -1%, they'd make .7 billion. If they dropped eleventy percent, they'd lose $potato.
 
2014-01-16 01:08:18 PM  

Private_Citizen: mithras_angel: Private_Citizen: thurstonxhowell: elysive: Sound economic investments like Sears or Rite Aid?

Now that Sears is run by John Galt, I'm sure it will turn around any now. Yup, any day now.

There are several fascinating articles on how Eddie Lambert is a huge disciple of Ayn Rand, and has been using her principles to drive Sears straight into the ground.

I highly recommend them to anyone who likes business.

When did he take over?

I've been meaning to make a "Sears - Going Galt since 20XX" pic...

Despite not having the official title of CEO at the time, Mr Lambert really took over when he masterminded the merger between Sears and K-Mart in 2005. So, "going Galt since 2005".

A great article is the one in business week titled:
"At Sears, Eddie Lampert's Warring Divisions Model Adds to the Troubles"

Business students will probably study this melt down for decades.


Not at all.
They will be fed the party line history of this meltdown to study.
 
2014-01-16 01:08:38 PM  

Lucky LaRue: The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.


factsanddetails.com

7/10
+1 for Boobies for maximum coverage.
 
2014-01-16 01:10:00 PM  
It's much more fun to gamble with other peoples money.

When you use your own money you have to think about consequences and stuff!
 
2014-01-16 01:11:00 PM  
For just a sec, let's IRL this,,
Just where the Fark does all this money "really" come from and just WTF?
How can that possibly be a sustainable business plan?
 
2014-01-16 01:53:41 PM  

elysive: Sound economic investments like Sears or Rite Aid? Has anyone entered one of those stores recently? I walked through a Sears a week before Christmas (to get to a parking lot) and it was a ghost town.


Sears is a ghost town because Eddie Lampert took it over and is using the most questionable "techniques" in managing it.  I don't know about Rite Aid, though.
 
2014-01-16 02:00:59 PM  

snocone: For just a sec, let's IRL this,,
Just where the Fark does all this money "really" come from and just WTF?
How can that possibly be a sustainable business plan?


"Sustainable" is a communist word. The word you should be looking for is "profitable". It isn't necessary for a business such as a bank to last, it is only important that it generates enough throughput for the board of directors to be able to manipulate the numbers to generate 7 figure bonuses for themselves and pay off the preferred-stock holders. If they have to incorporate a thousand ghost businesses and shell operations to shift the debts to and then file for bankruptcy on, thats what they'll do. Of course, the Volker rule was partly intended to do that, and that just ain't how American business works.

Think if it as being comparable to the chronic shoplifter. Sure, they have a couple million in cash, but it's so much more satisfying to steal that they cannot resist the idea.
 
2014-01-16 02:33:26 PM  
Re: Sears, I nearly forgot about this Family Guy clip!
 
2014-01-16 02:58:52 PM  

Lucky LaRue: The problem with the Volcker Rule isn't that it prevents banks from "gambling with customer's money", it's that it ham-strings US banks in a hyper-competitive global market.  Since liberals seem more than happy to gut American (economic) exceptionalism to satisfy their warped sense of fairness, we are fortunate to have solid, clear-seeing capitalist in charge and making the rules and laws.


For example, Canada.
 
2014-01-16 03:05:38 PM  

snocone: For just a sec, let's IRL this,,
Just where the Fark does all this money "really" come from and just WTF?
How can that possibly be a sustainable business plan?


It's not. In essence it is "Get in, get as much as I can while I can, then get out before I have to pay for what I'm doing now and let some other sucker get stuck with the bill."

It's the (new) American Way, apparently.
 
2014-01-16 03:36:35 PM  
Another good way to get a bannation on Fark is to speak poorly of Capital One (they provide sponsor links). Found that out the hard way. Those fat as fark mods will not let you bite the hand that feeds.
 
2014-01-16 03:51:36 PM  
If the global market is hyper-competitive how come I haven't had to change banks because my bank went out of business, ever?
 
2014-01-16 06:55:30 PM  

Nemo's Brother: Another good way to get a bannation on Fark is to speak poorly of Capital One (they provide sponsor links). Found that out the hard way. Those fat as fark mods will not let you bite the hand that feeds.


But they have all those commercials with Alec Baldwin! I've never been led astray by a Baldwin!
 
2014-01-17 05:57:13 AM  

snocone: Private_Citizen:Business students will probably study this melt down for decades.

Not at all.
They will be fed the party line history of this meltdown to study.


This, unfortunately.

Paul Krugman had a great article a month or two back about how despite being utterly discredited, a lot of economic "zombie"  ideas like austerity policies and supply side economics are still taught in schools and people who should be laughingstocks like Niall Ferguson are somehow still treated as economic experts.Here's a NY Times on how Ireland is being hailed as an austerity success story by conservatives, despite a mountain of evidence to the contrary. Their GDP looks like this:

graphics8.nytimes.com

Give it fifty years and half the country will learn in high schools that Obama drove the US into a recession despite the heroic measures of Wall Street. They've already done something similar with FDR and the New Deal.
 
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