The multi-agency effort to craft a Volcker rule ban on banks’ proprietary trading is a “Herculean task” that regulators will complete with imperfections, U.S. Securities and Exchange Commission member Kara Stein said today.
Complex human societies, including our own, are fragile. They are held together by an invisible web of mutual trust and social cooperation. This web can fray easily, resulting in a wave of political instability, internal conflict and, sometimes, outright social collapse.
Federal Reserve Governor Daniel Tarullo said regulators are writing a final version of the Volcker rule to block any repeats of JPMorgan Chase & Co.’s $6.2 billion in losses last year from derivative bets by a trader dubbed the London Whale.
The furor over scrutiny of Tea Party groups by the Internal Revenue Service, which hurt President Barack Obama politically, has heightened difficulties for tax preparers dealing with the agency, according to a lawyer who specializes in tax-exemption issues.