After three years of court-wrangling and trade-offs, the Volker Rule will be finalized today by the Federal Reserve, the Federal Deposit Insurance Corp. (FDIC) and three other agencies to restrict risky proprietary trading, while protecting economically essential activities such as market-making. Thus, giant banks like JPMorgan Chase & Co. (JPM), Goldman Sachs (GS) and the others will be prohibited from making trades that could result in catastrophic losses that would require a government bail-out. However, in a major concession for staffers at the market-making desks of banks, the people who set prices couldn’t be found liable, going forward, for price fixing. As investors, you might be wise to see just how far afield some bank’s market makers will go you plunk down funds in the financial sector.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: