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To: Erik Latranyi; Clint N. Suhks

Seems to me that Dodd-Frank was like the health care bill too, an empty bill that the regulators would fill in later, as Sebelius is doing now. There was something recent they had to decide on, I can’t remember what it is exactly.


168 posted on 11/07/2012 10:45:02 AM PST by Son House (Romney Plan: Cap Spending At 20 Percent Of GDP.)
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To: Erik Latranyi; Clint N. Suhks

A Hedge or a Bet? Trade Highlights Ambiguity in Volcker Rule(Dodd-Frank)
http://www.freerepublic.com/focus/f-news/2882920/posts
http://online.wsj.com/article/SB10001424052702304543904577398524164756112.html?mod=googlenews_wsj

Regulators have a July deadline to finish the rule, but officials have said it appears unlikely they will meet it.

The October draft rule issued by the Fed, the Securities and Exchange Commission and other regulators permits what is known as “portfolio hedging,” or buying and selling in order to reduce the risk of a portfolio of securities held at the bank.

Messrs. Merkley and Levin say regulators inserted a “loophole” into the rule’s draft.

The Dodd-Frank law says banks can conduct hedging activities related to “individual or aggregated positions.”

It is unclear whether that includes buying or selling to hedge against an economic downturn or another broad event that is difficult to match with individual security purchases.


179 posted on 11/07/2012 10:54:49 AM PST by Son House (Romney Plan: Cap Spending At 20 Percent Of GDP.)
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