Regulators in Washington have little idea of what they do. They are often wrong. And they are not penalized for their errors.
Under the so-called Volcker Rule, banks are not supposed to trade with their own money. That sounds good to politicians because it appears simplistic enough to sell to voters who haven’t a clue about banking.
But funds are intermingled and the extent of supervision depends on size. There are simply too many “ifs” in the picture. Political influence thus often rears its ugly head.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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