volcker rule

Credit Default Swaps: Still Here, Still Able to Wreak Havoc

JPMorgan Chase's rapid $2 billion trading loss reportedly involved credit default swaps -- the same investments that played such a large role in the financial crisis. Here's why credit default swaps still pose such a threat to the U.S. economy.

Why You Should Care
About the Volcker Rule

This week, the government took a big first step toward shutting down the Can't Lose Room in the Wall Street Casino. It's now one comment period away from enacting the Volcker Rule, which limits the kinds of risky investments banks can make with money insured by the U.S. taxpayer.

Citi Shuts Another Prop Trading Group for Volcker Rule

Citigroup is closing another one of its proprietary trading groups as it and other banks prepare to comply with the Volcker Rule, which will reduce the exposure of lenders to risky trading activities. What the move will mean for financial giant's profit margins, and its stock price.

The Financial Landscape: OPEC Quotas and 'Too Big to Fail'

The theme for Thursday is big players adjusting to a changing world: Citigroup is shutting down a major hedge fund it used for soon-to-be-banned proprietary trading, Goldman has been subpoenaed over its role in the subprime mortgage crisis, and OPEC is thinking that it might need to pump more oil.

Volcker to Resign From Economic Recovery Advisory Board

Paul Volcker, chairman of the Economic Recovery Advisory Board for President Barack Obama, is set to step down from the position next month. As a key adviser to the president, Volcker has advocated for tougher financial regulations and counseled the government on fiscal policy.

Investment Banks Exploit Volcker Rule Loophole

Investment banks are working around new regulations restricting them from putting their own capital into short-term investments: The Wall Street institutions are sidestepping the Volcker Rule by making direct purchases of securities, companies and properties, which are considered longer-term investments.

Is the Financial System Safe Now -- or Just Safer?

Since Lehman Brothers went bankrupt in September 2008, regulators around the world have begun erecting a scaffolding of new rules and regulations designed limit excessive risk-taking. The big question is: Are they enough to prevent another financial crisis?

JP Morgan to Shutter Proprietary Trading Unit

JP Morgan Chase & Co. will shut down its proprietary commodities trading division in an effort to comply with recent federal regulations related to investment banking, Bloomberg News reported, citing a person familiar with the process that it didn't identify.

Is Dodd-Frank Reshaping Wall Street Already?

Some top financial institutions are moving surprisingly quickly to reshape the way they operate in the wake of the financial regulation reform law. Question is: Did the legislation force their hands, or is this just a good time for big banks to rethink their business?

A Wall Street Lawyer's Take on Financial Reform

Winthrop Brown, a Washington lawyer who lobbies on behalf of financial services firms, says the new regulations should get fairly high marks from Wall Street -- and from Main Street. But will they prevent another economic meltdown?

Goldman May Be Financial Reform's Biggest Loser

Some winners and losers of the Dodd-Frank financial regulation reform bill are beginning to emerge. The bill's limits on proprietary trading will potentially hit Goldman Sachs the hardest. But it could also take a long time before those losses are realized.

The Case for Buying Bank Shares Now

Some pros are aiming straight at the eye of the financial hurricane, buying into the besieged banks. Here's why: The uncertainty threatening them has dissipated, and banks will now start looking for new ways to profit from the new rules.

What's Inside the Financial Reform Bill

Senate and House negotiators reached agreement early Friday morning on the most sweeping overhaul of financial regulation since the Great Depression. It includes a version of the Volcker rule, creates a consumer financial protection watchdog, and limits derivatives trading.

The Financial Reform Endgame Approaches

One of the key questions facing Congress as it labors to reconcile the House and Senate bills is this: Three years after the financial crisis began, how much risk should America's banks be allowed to take? Not surprisingly, opinions differ greatly.

Obama's Speech: Discontent on
Wall Street

It's no surprise big banks aren't happy with President Barack Obama's tough speech calling on them to support his financial reform efforts. Public criticism is hardly new to them.

New Record for Goldman

Goldman Sachs has disclosed that it had 131 trading days last year in which it made at least $100 million in net trading revenue -- a new record for the bank.

Bank Earnings Look Good, but Not for Long

Bank earnings are looking pretty good. Barclays announced that it made over $18 billion in 2009. Goldman Sachs had record profits. JP Morgan results were better than expected. Barclays' numbers were driven by assets it bought from Lehman Bros. and sharp improvements at its investment bank. But results from its retail bank operation were weak. So were numbers from its commercial loans. The bank still faces write-offs of leveraged assets on its books. In short, Barclays faces the same problems as most large American financial firms, which could make for a rocky 2010.