- Bonuses ("But how are we supposed to retain talent???")
- New Fees Imposed on Liabilities ("You're going to kill the repo market with that mindless 15 bp tax!!")
- Forcing Issuers of Asset-Backed Securities to Retain a Sizable Amount of Default Risk ("You're going to destroy the ABS market! How are we ever going to fuel another bubble? I mean, ahem, you're going to destroy the market!")
Tuesday, February 2, 2010
The headline in the WSJ reads "Banks Gear Up for a Battle." The ensuing article discusses banks' new worries over being forced to define and hive off their profitable proprietary trading units due to the Volcker Rule. Yet the headline is symbolic of the new financial environment. In fact, you could play a fun little game of fill in the blank if you were too lazy to read the story. Banks Gear Up for a Battle Over...