Wall Street banks, which already shut proprietary trading units that helped fuel record profits, are girding to learn next week how much revenue the Volcker rule may cut from the $44 billion they say comes from market-making.
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.
The Volcker rule that U.S. regulators are trying to complete this year doesn’t do enough to limit banks’ ability to make speculative bets, said Bart Chilton, a member of the U.S. Commodity Futures Trading Commission.
Janet Yellen, the nominee for Federal Reserve chairman, said the Fed would take into account the public interest in any delay of the conformance period for the Volcker rule, which bans proprietary trading at banks.
Treasury Secretary Jacob J. Lew warned chief executive officers of top U.S. banks in a private meeting last month that the final Volcker rule ban on proprietary trading would be tougher than Wall Street expects.
Janet Yellen is poised to take charge of a Federal Reserve System where boardroom dissent has become increasingly rare, making the central bank’s governing body an unusual example of harmony in a divided capital.
As a Francis Bacon triptych sold for $142.4 million at a New York auction last night, the city popped with fundraising, retail excursions, Harvey Weinstein film showcases, and a heavyweight boxer in the ring at the New York Public Library.