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These governments argue that the rule would make it hard for them to access loans for their public operations and projects (Goldfarb and Schneider 2012, par. 1). The business community argues that the rule should be made more permissive in case it restricts the bank’s capability to procure capital and loans (Eichler 2012, par. 7).
Local and state officials state that the Volcker Rule will make it more costly for them to gather money from investors to pay for expenditures such as housing assistance and environmental cleanup. Within the Washington region, the rule could influence borrowing costs for various agencies. Authorities that can be adversely affected by the rule include those that operate Dulles International airport, Reagan National airport, and the Walter E. Washington Convention Center (Goldfarb and Schneider 2012, par. 2). The European governments caution that the rule could further worsen the debt crisis which is already affecting the global financial markets. Foreign governments and municipalities are complaining that the legislation will considerably limit their purchasing of bonds by the banks. Thus, it will increase the interest rates that the issuers of bonds have to pay in order to attract investors (Goldfarb and Schneider 2012, par. 8).
If the Volcker Rule would be implemented, it would indicate that the banks will have to close their prop trading desks and consequently, 10,000 employees will probably lose their jobs. There are also concerns in relation to how the United States’ banks will be able to compete with the financial institutions in Europe that are less affected by the proposed legislation. Most of the US banks’ business model will be influenced by the proposal indicating that they will have lower competitive advantage in comparison with their counterparts in Europe (Brinded 2011, p1; Lynch 2012, par. 1).
The huge US banks fixed income business models offer a considerable amount of prop
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BUSINESS ETHICS Table of Contents Table of Contents 2 Introduction 4 Product & Service Mix 4 Brief SWOT Analysis 4 Business Ethics 5 Theoretical Perspective of Business Ethics 7 Code of Conduct for HSBC 8 Corporate Governance 8 Conduct for Suppliers of Goods and Services 10 Economic 10 Environmental 11 Social 11 Employment Conditions 11 Community 11 Telemarketing 12 Regulatory Reform 15 Volcker Rule 15 Security 16 Conclusion 16 Introduction HSBC Holdings Plc is a well known multinational financial and banking service provider located in United Kingdom.
The Time Magazine in its cover story of 12 July 2010 examines how lobbyists shaped the financial reform bill of 2010. Carried-interest provision According to Center for Responsive Politics, lobbying firms like Capitol Tax Practioners were paid $ 3.4 billion by banks, mortgage lenders, stockbrokers, private-equity funds and derivatives traders in 2009.
The recession that hit UK and other parts of the world led to revaluation of macro prudential principles with an aim of curbing financial volatility. Critics argue that creating macro prudential principles would eliminate operation, which allow banks to act without evaluating the impact of the action they are yet to take.
Name Institution Course Instructor Date Financial Innovation Abstract Many economists have been skeptic to financial innovation arguing that it has unprecedented effects to the taxpayers. Various economic arguments have proved the need to institute economic policies to guide the financial innovation.
Japan has also incurred high public debt for which its credit rating has been downgraded by Standard and Poor’s (S&P) in January 2011. In August of the same year, S&P downgraded long-term U.S. sovereign debt from the highest possible rating, AAA, to AA+.
Name Professor Course Date Law Question One White-Collar Deviance The expression white is a conventional relationship of unimpeachable character, patent by decent fairness, liberated from smudges and moral contamination, blameless, manifested by the putting on white garments by a lady as a sign of transparency, not planned to bring harm (Simon and Frank, 67).
These restrictions were to be levied by not allowing banks to conduct certain kind of business transactions. If these measures are implemented they will have an adverse effect on the financial system of US and the businesses linked to it and the effect will not only effect US, but will even shake the financial systems of other nations linked to it.
These regulations target the financial industry, but also specifically impact the banking industry through the Volcker Rule ("Dodd-frank act -," 2012). The Volcker Rule indicates that, “Banks are not allowed to simultaneously enter into an advisory and creditor role with
The discussion focuses on ring fencing of retail banking from investment banking in the United Kingdom while in countries such as Germany and France, hybridization of ring fencing and proprietary trading has been
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