“…the Answer is ALWAYS Money.”

8 Dec

I’m not sure exactly how the Government is going to eventually define what is and isn’t “proprietary trading,” but I am certain, absolutely so, of one thing and one thing only: Regardless of how strict or lenient the rules and definitions end up, banks will find a way to game them to their benefit (and, I suppose, the benefit of their shareholders, until the next financial crisis at least).

Why am I certain of this? To co-opt a quote from sports broadcasting legend Don Ohlmeyer (attributed to him by ESPN’s Tony Kornheiser), “if you don’t know the answer to a question, the answer is always money,” and that is exactly why banks will find a way around the so-called Volcker Rule that seeks to limit banks “risky” proprietary trading.

Rest assured, there are many highly-compensated lawyers are chomping at the bit just dreaming about the cash they stand to make advising banks how keep making cash money on some form of prop trading and avoiding fees if/when the Government tries to crash the party.



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