Accounting & Investing Info for San Antonio A & M
Monday July 30 2012
Fed Governor Raskin spoke out demanding a definition of the Volcker Rule. The problem is that now banks are taking outsized bets, as they were in 2007, pocketing the gains when they win but expecting a bailout when they lose. And they are doing it with your and my FDIC deposits.
Maria Bartiromo gets completely exasperated with Barney Frank's inability to explain the volcker rule or why the rules are still not in place.
Barney Frank’s insistence on the Volcker Rule and Frank-Dodd Act seems more political than practical. The Glass-Steagall Act is seeming more and more like a good idea as banks use traditional bank funding (such as deposits) to gamble on high-risk investment products. As derivatives are bought and sold on the market, it begins to resemble a sophisticated game of hot potato where the banks never lose.
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Joe
You are spot on correct, we will take up studying derivatives in Acct 3311
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Professor Elam 
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