[Karen37a]

The banning of this form of trading by banks hurt the amount of capital available in the market

It prohibited commercial and FDIC-backed banks from:

Owning, partnering with or investing in hedge or private equity funds.

Engaging in proprietary trading: speculation using the firm’s own funds with the intention of making a profit

it was ambiguous what exactly constitutes “speculating” as opposed to just “hedging.”

While much of the coverage of the Volcker Rule has focused on its restrictions on proprietary trading, the rule also had a significant impact on the investment management industry. Banks that had relationships with private funds and private funds that had relationships thru banks.

Iit had a substantial impact on hedge funds Dodd-Frank required that the Agencies adopt a rule prohibiting banks from owning an interest in a hedge fund or private funds.

My main objections where that under the Volcker Rule banks could no longer own an interest in these funds (and other negative things)


** those who had existing referral relationships with banks or huge money machines might been opposed to people coming in with money thru new Hedge funds etc and many hate the iso brokers associated with them. Money hopefully will get freed up. Syndication. No one should see this as a bad thing when you are being squeezed by the BIG three or five or Banks and priced out. imo