economy still struggling to recover from a deep recession

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canada goose coats WASHINGTON/NEW YORK (Reuters) Regulators hashing out the details of a new ban on proprietary trading are wrestling with internal disagreements over how much leeway to give banks when it comes to their ability to hedge risk, according to people familiar with the negotiations. canada goose coats

canada goose store The ban is known as the Volcker rule, named after former Federal Reserve Chairman Paul Volcker. It will prohibit banks from trading for their own profit in securities, derivatives and certain other financial instruments, and ban uk canada goose their investing in or sponsoring hedge funds or private equity funds. canada goose store

Canada Goose Outlet A key focus for Wall Street has been the exemption for trades used to hedge against risk from the various positions buy canada goose jacket cheap and assets held by banks. Canada Goose Outlet

buy canada goose jacket cheap Proponents of the measure want the hedging exemption drawn as narrowly as possible for fear it will serve as a loophole for proprietary trading, while banks argue a broader interpretation is canada goose factory sale needed so they can hedge against an array of risks. buy canada goose jacket cheap

As five regulatory agencies prepare a proposed rule, Canada Goose online expected in early October, there have buy canada goose jacket been internal disagreements over how broadly canada goose black friday sale the exemption should be crafted.

Canada Goose Jackets The Office of the Comptroller of the Currency has pushed to give canadian goose jacket banks canada goose uk outlet more leeway to hedge against the overall risks facing portfolios, such as those related to the economy and market risk, said three people with knowledge of the discussions. Canada Goose Jackets

On the other side of the debate the Federal Deposit Insurance Corp, cheap Canada Goose the Commodity Futures Trading Commission and the Securities and Exchange Commission have advocated for a tighter interpretation of the law that would, for the most part, require banks to more closely map a hedging position to an individual or small group of trades done on behalf of customers, according to these people.

Canada Goose online Draft Canada Goose Jackets language on the rule being circulated in August laid out the two sides but left the issue unresolved, said Canada Goose Outlet a person who viewed the language. Canada Goose online

canada goose black canada goose jackets friday sale The Federal Reserve, whose position is now seen as having the most weight, canada goose clearance sale has been less committed to one side but agency officials appear to cheap canada goose uk be leaning, along with the Treasury Department, toward the broader interpretation advocated by the OCC, according to these people. canada goose black friday sale

canadian goose jacket The agencies declined to comment before the rule has been released. canadian goose jacket

Canada Goose Parka It is possible regulators will punt canada goose uk shop on the issue when the proposed rule is released in October, and instead seek more public comment on hedging. banks which dominate the trading business, such as Goldman Sachs, JPMorgan Chase and Bank of America. Canada Goose Parka

Canada Goose sale Billions of dollars are potentially at stake. Canada Goose sale

canada goose deals Trading Canada Goose Parka revenue, already falling this year, canada goose coats on sale tallied $17 billion in the second quarter for bank holding companies, Canada Goose Online according to a recent report by the OCC. canada goose deals

canada goose THE UBS EFFECT Adding a new element to the debate is last week canada goose uk black friday arrest of Kweku Adoboli, a London based UBS trader, on charges Canada Goose sale of fraud and false accounting dating back to 2008. regulators to take a tough stance on proprietary trading. canada goose

cheap Canada Goose and brokerage firms were doing a canada goose coats great job of convincing congressmen, the media and other people that the rules have gone too far, canada goose clearance said Andrew Stoltmann, a Chicago based securities lawyer and investor advocate, at Stoltmann Law Offices. that the UBS trading bomb went off, I think the attention has been shifted back to a need to implement these regulations. economy still struggling to recover from a deep recession, regulators are also staring down the argument from banks and Republicans that a tough Volcker crackdown will further restrict lending and limit chances for growth and new jobs. cheap Canada Goose

Banks have called the ban on proprietary trading unnecessary and exceedingly difficult to Canada Goose Coats On Sale implement uk canada goose outlet because it is hard to distinguish between trades being done for clients as opposed to solely for the bank profit.

buy canada goose jacket Supporters of the ban say it will make banks, which enjoy government support through deposit insurance and access to Fed funding, less risky and force them to focus more on their customer needs. buy canada goose jacket

canada goose clearance When drafting the law, Volcker supporters recognized the need to allow hedging but tried to narrowly draft the exemption so that such trades directly offset client trades. canada goose clearance

must monitor and evaluate canada goose store the hedging activities that firms claim to have undertaken at risk mitigating measures to ensure that they are not used as vehicles for hidden proprietary trades, Democratic senators Jeff Merkley and Carl Levin, who drafted the Volcker rule language in the law, canada goose said in a letter to regulators in November 2010 when government agencies first started working on the rule.

Banks have pushed back, arguing that it will be very difficult to do any type of hedging and that institutions need to be able to hedge against broader risks facing their portfolios. Such hedging is common now on Wall Street.

canada goose clearance sale transactions present only a single risk; most present a series of risks that may include, among others, market risk, interest rate risk, credit risk and currency risk, the Securities Industry and Financial Markets Association wrote regulators in November 2010 canada goose clearance sale.

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