Ever since President Barack Obama<\/strong> proposed last month limiting the ability of commercial banks to engage in \u0093proprietary trading,\u0094 bankers have complained that the definition of \u0093proprietary trading\u0094 is too open to interpretation and vague. Mr. Volcker doesn\u0092t buy it.<\/p>\n \u0093Every banker I speak with knows very well what \u0091proprietary trading\u0092 means and implies,\u0094 he will tell the Senate Banking Committee in the afternoon, according to prepared remarks. (Essentially, a bank engages in proprietary trading when it makes bets using its own capital, not a client\u0092s).<\/p>\n He says \u0093only a handful of large commercial banks — maybe four or five in the United States and perhaps a couple of dozen world-wide — are now engaged in this activity in volume.\u0094<\/p>\n He also ticks off a list of eight different business practices besides proprietary trading that banks use to make money, such as lending, underwriting corporate and government securities, and managing brokerage accounts. His point: stop your whining, bankers.<\/p>\n Just as interesting in the testimony is what Mr. Volcker doesn\u0092t say. He doesn\u0092t delve into details of another part of the White House proposal, which would place new constraints on the size of a bank.<\/p>\n All of these changes must first be approved by Congress, which is one reason Mr. Volcker is headed to Capitol Hill.<\/p>\n Not so fast, bankers. Former Federal Reserve Chairman Paul Volcker will try to dispel some of the recent complaints made by Wall Street executives in his testimony to the Senate Banking Committee Tuesday. Ever since President Barack Obama proposed last month limiting the ability of commercial banks to engage in \u0093proprietary trading,\u0094 bankers have complained […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-266363","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/266363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=266363"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/266363\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=266363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=266363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=266363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/img><\/a>
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