Their houses full of deceit
by Ted Rudow III,MA ( Tedr77 [at] aol.com )
Saturday Nov 13th, 2010
Wall Street firms are reportedly exploiting a loophole in financial reform legislation to continue the practice known as proprietary trading, in which banks trade financial securities from their own commercial accounts.
Former Federal Reserve Chair Paul Volcker had proposed the curbs to help undo some of the damage of the 1999 repeal of the Glass-Steagall Act, which had ensured the separation of commercial and investment banking.
The “Volcker rule” provision of the Dodd-Frank financial reform limits the extent to which banks can bet with their own capital, banning them from short-term trading of securities for their own accounts. Firms including Goldman Sachs Group Inc and Morgan Stanley are closing or slimming down some of their units in order to comply with the law. But the Volcker rule does not apply to banks’ “principal investments,” or longer-term direct purchases of securities, companies and property assets, the Financial Times said. Such deals drove big profits for banks before the financial crisis, but turned into a main source of losses for Wall Street firms like the now-defunct Lehman Brothers Holdings Inc, the paper said.
JER.5:27-28 As a cage is full of birds, so are their houses full of deceit: therefore they are become great, and waxen rich. They are waxen fat, they shine: yea, they overpass the deeds of the wicked: they judge not the cause, the cause of the fatherless, yet they prosper; and the right of the needy do they not judge.
He sent their request, but sent leanness to their soul.
Ted Rudow III, MA