The bailouts were particularly contentious because while ordinary citizens received no such protection, public money was utilized to shield their wealthy executives as well as private financial institutions. One conclusion of the government's reaction was the suggestion to enact into law the Volcker rule, which prohibited banks from participating in proprietary trading, or trading for their own-not their clients'-benefit.
Proprietary trading was believed to create up to 10 percent of total trading revenues, which will have surpassed $5.9 billion in 2010 for the six greatest American banks alone. In case the Volcker rule were to become law, government agencies, including the Securities and Exchange Commission, the Federal Reserve, the FDIC, as well as the Office of the Comptroller of the Currency, would inscribe the comprehensive policy that must apply the law. Civil servants were employed by these bureaus but were run by political appointees with technical qualifications. The bureaus would solicit comments from the general public, which would help shape the regulations, after issuing a notice of proposed rulemaking. Executives of big banks needed to decide how to respond to this potential change in their own business environment.
PUBLICATION DATE: November 05, 2012 PRODUCT #: KEL703-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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