Wall Street Proprietary Trading Under Cover: Michael Lewis

[Donnachaidh]

http://www.bloomberg.com/news/2010-10-27/wall-street-proprietary-trading-under-cover-commentary-by-michael-lewis.html

A few weeks ago we asked a simple question: Why are the same Wall Street banks that lobbied so hard to dilute the passages in the Dodd-Frank financial overhaul bill banning proprietary trading now jettisoning their proprietary trading groups, without so much as a whimper?

The law directs regulators to study the prop trading ban for another 15 months before deciding how to enforce it: why is Wall Street caving now?

The many answers offered by Wall Street insiders in response boil down to a simple sentence: The banks have no intention of ceasing their prop trading. They are merely disguising the activity, by giving it some other name.

A former employee of JPMorgan, for instance, wrote to say that the unit he recently worked for, called the Chief Investment Office, advertised itself largely as a hedging operation but was in fact making massive bets with JPMorgan’s capital. And it would of course continue to do so. JPMorgan didn’t respond to a request for comment.

MORE at the link --

[dkf]

1. Why is someone unrec'ing this?

Its very important to know about this people!

[Donnachaidh]

2. it's the swarm

We have a very active bunch who hate important information. :shrug:

[dkf]

3. Yeah it's like they revel in cluelessness.

Ignorance is bliss?

[Donnachaidh]

4. no -- they probably work for the banksters

And are trying to drown out the stuff that will damage *their* bottom line.

Job security at all costs! :sarcasm: