Banks Freed From The Restraints Of Dodd-Frank And Volker Rule
Eric De Groot | Dec 21, 2014 01:48AM ET
The fall of Dodd-Frank which eliminated the big losses in July .
The fall of Dodd-Frank carries consequences that will be realized during the next crisis. While those consequences will likely exceed the fallout of 1929 and 2008, few seem worried about them today.
Headline: Fed Grants Volcker Reprieve in Banks' Second Big Win This Month
Banks added to their wins in Washington this month by getting a reprieve from the Volcker Rule that will let them hold onto billions of dollars in private-equity and hedge-fund investments for at least two more years.
The Federal Reserve granted the delay yesterday after banks said selling the stakes quickly might force them to accept discount prices. Goldman Sachs Group Inc. has $11.4 billion in private-equity funds, hedge funds and similar investments, while Morgan Stanley has $5 billion, securities filings show.
“This is a great holiday present by the Fed,” said Ernest Patrikis, a former Federal Reserve Bank of New York general counsel who is now a partner at White & Case LLP.
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