Banks Find Comfort In Dodd-Frank Loopholes

Banks find comfort in Dodd-Frank

It is not surprising to find loopholes in the Dodd-Frank Act for banks.   But when loopholes allow “collateral transformation”, potential consequences are questionable. As has previously been reported, the Dodd-Frank reforms require derivative deals to be executed on a clearinghouse. This means that traders will need to post collateral while regulators will have a central place to spot risks in the market. However, it seems that … [Read more...]

Sandy Weill Says Break up Big Banks

Since the financial crisis of 2008 a lot of attention has focused on the role that “too big to fail” banks played in the crisis. In fact, some of the key provisions of the Dodd-Frank reform measure, in particular the Volcker Rule, are aimed at addressing the too big to fail problem.  But some observers argue that the reforms don’t go far enough and big bank model needs to be structured. In the middle of this intellectual debate, one … [Read more...]