Volcker rule: special focus

Published on:

After three years of grumbling from market participants, the flagship Volcker rule – which, in the main, seeks to reduce proprietary risk-taking by the larger banks' trading desks – has been given the green light by US lawmakers, amid fierce lobbying from Wall Street. Euromoney rounds up our latest coverage of the disruptive regulation.

Financial regulation: special focus

Paul Volcker 
Not enough trade for Volcker
January 2014
Will Paul Volcker, author of the rule that has banned banks from proprietary trading, now stand up, perhaps beside Gary Gensler, recently departed head of the Commodity Futures Trading Commission, and lambast banks for not trading enough?

The Volcker rule: a modest proposal
December 2013
The final version of the Volcker rule is unlikely to give posterity phrases that echo through the ages in the style of the King James Bible, but the details of its wording are important to financial market participants, which helps to explain the extended bickering.

The Volcker rule: Five things you need to know
November 2013
In an exclusive interview, a former drafter of the Volcker rule explains why, in its current trajectory, the flagship regulation will fail to distinguish legitimate market-making and proprietary risk-taking while banks sound the alarm on compliance costs, hit to earnings and extraterritoriality concerns.

Here comes the great bond liquidity drought
September 2013
Liquidity in the world’s bond markets has reached crisis point. Investors can no longer rely on banks to provide a crucial intermediary function in secondary markets. It’s now time that investors took responsibility and did something about the liquidity challenge themselves. Failure will be disastrous for global financial markets. Euromoney investigates.

To Paul Krugman's chagrin, Volcker and the BIS swim against the deflationary tide
May 2013
Before lambasting Paul Volcker and the Bank for International Settlements for sounding the alarm over the inflationary impact of lax G7 monetary policy – even in the face of a deflationary cycle – take a moment to consider the defence.

Confusion clouds derivatives industry amid Dodd-Frank attack
March 2013
Considerable uncertainty is vexing derivatives players amid a raft of questions over the Dodd-Frank regime. The exact details of the rules pertaining to margins, trading, cross-border dealings and the Volcker rule remain ambiguous, with final rulings yet to be published. No one can predict the net cost of this new regulation but derivatives players are still quaking in their boots.

Bank of England governor Mark Carney
Mark Carney: Finance’s new statesman
October 2012
Regulators have regained their reformist muscle in the shape of Mark Carney, Bank of Canada governor and chairman of the Financial Stability Board. In a wide-ranging interview, Carney talks about recent banking scandals, the Volcker rule, and why fears about Basel III are wide of the mark.

Regulation: JPMorgan’s trading loss proves Volcker rule won’t work
May 2012
JPMorgan’s several-billion-dollar trading loss has certainly shredded the credibility of chief executive Jamie Dimon’s criticisms of bank regulators. It is also more likely to discredit the Volcker rule’s efficacy than support it, say market participants.

Volcker rule ‘to create competitive disadvantages, risk transfer and regulatory arbitrage’
October 2011
Experts say US investment banks will be at a competitive disadvantage if the rule is made legal, regulatory arbitrage will be likely, and the proposed paring down of quotas for hedge fund and private equity clients will lead to a transfer of risk.

Volcker rule to cull bank profits, jobs and increase bank bailouts
October 2011
Experts say the proposed ruling will eat into bank profits, cause a wave of job losses on Wall Street and increase the chances of bank recapitilizations.

Proprietary trading: Volcker rule starts to shake out prop trading
September 2010
With 29,000 employees in the investment bank, JPMorgan’s decision to shut down a division staffed by just 20 would not normally cause a stir. That business, however, is a commodities proprietary business, making JPMorgan the first large bank to show signs of submitting to the Volcker rule.

Private equity: What Volcker rule?
July 2010
With public markets shaky, there is demand for private equity, and banks want to be in on it despite regulatory threats.