Regardless of how much proposed financial reform legislations cuts down on proprietary trading by the banks (if at all), we still have a few years to go before new rules would take effect. My comments from the article:
It’s likely that some form of legislation will be enacted before the end of the year. “Final passage of a bill is expected before the November 2010 elections in the best interests politically and for its impact on the economy,” Kevin McPartland, senior analyst at TABB Group, told Markets Media Monday.
True implementation of derivatives reform will likely not come until 2012, however. “Regulators will need time to write the rules and allow dealers and market participants to ready technology and processes to implement new rules,” McPartland said. “It’s unfortunate that OTC derivatives reform cannot be broken out for discussion from issues like the consumer protection agency.”
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