Goldman Sachs already 1 step ahead of financial reform

Goldman Sachs already 1 step ahead of financial reform

[atsimg]http://files.abovetopsecret.com/images/member/07d6087d6163.jpg[/atsimg]

Goldman Sachs has figured out a novel approach to getting around
the Volcker Rule’s restrictions on trading: it’s remaking its risk-taking traders
into asset managers, and the rest of Wall Street may soon follow, FOX
Business Network has learned.

The big Wall Street firm has moved about half of its “proprietary” stock-
trading operations — which had made market bets using the firm’s
own capital — into its asset management division, where these traders
can talk to Goldman clients and then place their market bets.

The move is designed to exploit a loophole in the Volker Rule, part of the
recently signed financial-reform legislation named after presidential economic
adviser and former Federal Reserve chief Paul Volcker. The Volcker Rule is
supposed to scale back on Wall Street risk taking by ending what’s known
as proprietary trading, where firms use their own ideas and capital to make
market bets.

www.foxbusiness.com...

And here is how it will be marketed to the public and investors

Goldman Sachs launches derivatives clearing unit

Goldman Sachs Group Inc. said Tuesday it has launched a new
business to help clients adapt to changes in trading of derivatives, which
have come under regulatory scrutiny for their role in the financial crisis.

Goldman Sachs said its Derivatives Clearing Services business will help
facilitate a transition to centralized clearing of derivatives trades, including
derivatives tied to interest rates, credit, foreign exchange, equity and
commodities.

www.google.com...

edited for formatting

[edit on 27-7-2010 by boondock-saint]

So can somebody please tell me what good
Wall Street Reform Laws are, if they get
circumvented before the ink dries on the
legislation???

reply to post by boondock-saint


They didn't FIND a loophole...

They helped write the damn thing!!
Including some ex employees positioned in the WH...

Ofcourse they put in these measures they knew they could work around..

Originally posted by boondock-saint
So can somebody please tell me what good
Wall Street Reform Laws are, if they get
circumvented before the ink dries on the
legislation???

You ever tell someone "i'll call you back", knowing good and well that you have no intent of doing it?

That is what all of the reform amounts to.

So can somebody please tell me what good
Wall Street Reform Laws are, if they get
circumvented before the ink dries on the
legislation???

As I have said before, government regulation is a deceptive way to give power to only a select few. The goal of regulation is told to be to 'stabilize the market' but it is actually to keep those who are in power (government and private) in power.

Even anti-trust laws are written for the benefit of the oligopoly.

The big Wall Street firm has moved about half of its “proprietary” stock-
trading operations — which had made market bets using the firm’s
own capital — into its asset management division, where these traders
can talk to Goldman clients and then place their market bets.

Translation: They are now going to nakedly front-run and steal from their clients, instead of making nudge-nudge inferences from salesman to prop trader at the coffee bar. And they'll tell people that the government made them do it!

reply to post by DINSTAAR


You forgot about consolidation of wealth and power...

Every new law usually sees smaller businesses dissapear or be bought out by the larger prey..

Well, you guys are right at the heart of the problem
Its the hand on the US jugular right there, and because it is the world's reserve currency it is the hand on the big lever too.
SandF
Boondock Saint.
As long as th oligarchs are writing the laws, the troubles will not stop.

What is to be done to get the law righting ooops writing back into the hands of "we the people?"

Some parts of the reform bill that would have prevented this were opposed fiercely by certain politicians. If you look up which party those politicians belong to, you can't really be surprised

But don't worry, they had YOUR best interest in mind when they buried those necessary reforms...