http://www.guardian.co.uk/business/2...ook-until-2022
<H1>US banks off the hook until 2022</H1>
Political reality has forced compromise into the final version of the financial regulation reform bill in the US
It was billed by Barack Obama as the toughest crackdown on Wall Street since the great depression. But top US banks could be given until 2022 to comply with the so-called Volcker rule, which is supposed to restrict financial ins utions' risker trading activities.
A string of delays and extension periods written into a final version of Congress's financial regulation reform bill means that firms such as Citigroup and Goldman Sachs could exploit loopholes until 2022 before withdrawing from "illiquid" funds such as private equity. The long gestation period is an example of the degree of compromise inserted into the package following months of lobbying on Capitol Hill by powerful banks.
"You can't just say 'stop', you can't just say 'unwind,'" said Lawrence Kaplan, a lawyer at Paul, Hastings, Janofsky & Walker in Washington, who said the delay was a dose of political reality. "These things have contracts and detailed legal frameworks. You can't undo them without doing considerable harm."
The Volcker rule, championed by formed Federal Reserve boss Paul Volcker, stops banks from engaging in "proprietary trading" whereby they trade with their own capital, rather than clients' money. It also severely restricts their investments in high-risk hedge funds and private equity ventures.
Language in the act, according to Bloomberg News, allows for a six-month study and a further nine months of rule-making. The measure is supposed to become effective 12 months after the final rule is laid, then banks have two years to conform. But if they need to, they can apply for a three-year extension. On top of that, a five-year moratorium is available for "illiquid" funds that are hard to unwind.
Complicated caveats in the bill are subject to interpretation. A spokesman for Jeff Merkley, a Democrat who proposed various changes to the rule, told Bloomberg that the maximum delay was supposed to be nine years.
Other measures in Obama's reforms include the creation of a consumer protection agency, the introduction of a vote by shareholders' on boardroom pay and new powers for authorities to seize troubled financial ins utions.
For Wall Street, the Volcker rule and curbs on derivatives trading are the most contentious changes. In a research note, analyst Jason Goldberg of Barclays Capital said JP Morgan, Bank of America and Citigroup would be most affected by a ban on proprietary trading. Taken together with the rest of the regulatory reform bill, Goldberg estimated that Obama's crackdown could cut earnings at 26 leading banks by 14% in 2013, eliminating nearly $18bn of profit.
You still don't get it. smoke and mirrors. He knows whats in the bill. When the bill passes he will get in front of his teleprompter and give a wonderful speech about how he just took on the evil wall street bankers and won. Don't you understand that in his mind, just saying it makes it so?
it's amazing that you can read his mind. What's even more bizarre is that you're in tune with his motives. All of this without ever meeting the man..
Youre personalizing it. Your pointing your comments at Obama. You need to pull your head out of your conservative ass and realize who is calling the shots in this piece of legislation.
Realize that your government has been overrun and regardless which party secures the vote, the same people who killed this regulatory attempt maintain control, and are about to bankrupt the damn country.
These mofos damn near bankrupted us once, and our government doesnt even have the teeth to protect our best interests, even in the face of our ultimate demise?
Wrap your head around that for a while, and stop thinking along party lines.
I wonder if God will break his teleprompter again?
Break it down. I'm giving him the benefit of the doubt.it's amazing that you can read his mind. What's even more bizarre is that you're in tune with his motives. All of this without ever meeting the man..
If my statement is incorrect, then
1) He doesn't know whats in the bill.
or
2) He will intentionally lie to us about what he knows is in the bill.
CC and WC: Two conservative schmucks who cant get off the end of Obamas long enough to see the calamity that is your government?
Where does the article state that Obama doesn't know what's in the bill? Apparently the law is going to be phased in. Isn't that a good thing? I'm still trying to find where he lied.. I assume you'll show where you claim he's lying
believe it or not, most of us who like the "tea party" agree with you. we simply most often take the lesser of two evils.
What if... Now seriously, start with these basic assumptions about a tea party supporter or member:
1) We don't like our current government officials.
2) We want to return the government to the people.
Think about their platforms from a neutral viewpoint. Yo may not like an item or two, but don't let that stop you from listening about other ideals.
Now what if, most the politicians supported by the various groups identifying with the "tea part," are supporting suck people, who also want to change Washington.
What if?
What are you talking about? The article is pretty clear and none of it remotely resembles your 2 false choices..
Is that what your wet dreams consist of? Other people's s?
Wow....
Since the people elect their officials directly wouldn't that define 'the people's govt.'?
you just proved his point.. nice job
Really...
Maybe you should read the bill. Plenty of places prove the democrat rhetoric about it lies.
You appear to be extremely confused. Or maybe it's just lack of reading comprehension. My response was a direct answer to your statement about reading Obama's mind.
Well since ,accoring to you, they are so obvious then point a few out. Tell us where they are lying
What if Obama is giving us exactly what we got under GWB, with a few minor health care scraps thrown in for good measure? Just what if any vote you cast for the establishment/career politicians is just going to keep us headed on the same path to ? what if the two party system has been completely commandeered? what if your choice is no choice at all?
When the has a republican ever brought change? and when the havent we been offered change? change that keeps us headed closer and closer to the edge of a damn cliff?
I'm confused? You made a claim (by assuming his motives) and then call him a liar. I ask you to prove ieither claim and then you tell me I'm confused... Nice logic
you hopeless twits...I submit an article about the continuing bankrupting of US coffers and you want to talk about obamas teleprompter. Someone please close this thread...this is not the place for intelligent debate.
If the evils are equivalent, neither is lesser.
They want to call him a liar concerning this legislation..when called on it they tehn claim "He's going to lie"..
Not when the only choices the people generally have are destine to follow the set path of an elite government. Both side. Empty promises. Those supported by the tea party are people who want to break this cycle of an ever growing government.
Yet they vote Republican...
Then the author of the article either lied, or didn't read the bill.
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