from Armstrong Economics:
Signing of Dodd-Frank – Now Virtually Repealed/Gutted
The NY money center Banks won again in Washington, the second time in a single month. They succeeded in repealing Dodd-Frank and have now succeeded in repealing the Volcker Rule, which it is officially put on “delay” that will be permanent. The Federal Reserve has repealed the Volcker Rule that will let the highly speculative banks hold onto billions of dollars in private-equity and hedge-fund investments for at least two more years until it is delayed again if not just forgotten about silently.
The Fed granted the delay yesterday after banks argued selling their vast positions quickly might force them to accept discount prices. The irony in this is that Goldman Sachs Group Inc. has $11.4 billion in private-equity funds, hedge funds and similar investments, while Morgan Stanley has $5 billion, securities current filings show. But Goldman became a “bank” only to get in line for bailouts. They are not a real bank with branch offices taking deposits from little old ladies. They became a “bank” to accept a bailout. Now as a bank, they are altering the entire banking system because they are traders – not bankers. JP Morgan want to be more and more like Goldman Sachs. This is destroying the entire banking system.