The Volcker Rule is Born
Courtesy of Joshua M Brown, The Reformed Broker
Obama has just introduced what we’re calling the Volcker Rule. This will prohibit banks from owning hedge funds, engaging in most prop trading and generally stop bank affiliates from taking on risk involving FDIC-backed deposits. It sounds tres Glass-Steagally to me.
The stocks of GS, JPM, BAC etc are all getting prison-raped on the news.
This is developing so I’ll need to come back with more details later today…stay tuned.
