President Obama's Wall Street Reform's "Volcker Rule Unveiled: May Slash Wall Street Bonuses" [View All]

[ClarkUSA]

This may be one reason why Wall Street "doesn't feel loved" by President Obama:
http://www.google.com/search?client=safari&rls=en&q=wall+street+doesn't+feel+loved&ie=UTF-8&oe=UTF-8

It's easy to see why Wall Street campaign donors have been snubbing President Obama:
http://www.nypost.com/p/news/local/manhattan/wall_street_bigs_kip_glitzy_apple_P9nLXvE0U04bHj7EHPxW1M

And why Goldman Sachs and others from Wall Street have been flocking to Romney:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x798833

The government’s biggest financial heavyweights released a long-awaited version of the financial regulation known as the Volcker Rule, which may regulate “high-risk” trading more closely and lead to smaller Wall Street traders’ bonuses... The proposed Volcker rule, named after former Federal Reserve chairman Paul Volcker, is part of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July 2010. The rule prohibits two activities among insured depository institutions — any bank or credit union that is federally insured and accepts deposits, and that includes traditional banks as well as Goldman Sachs, Morgan Stanley, and American Express.

First, it prohibits those financial companies from engaging in “short-term proprietary trading of any security, derivatives and certain other financial instruments” from an entity’s own funds. Second, it “prohibits owning, sponsoring, or having certain relationships with, a hedge fund or private equity fund.”... The Treasury said the rule details whether a nonbank financial company should be subject to “enhanced supervision” to prevent a future financial crisis. In the recent financial crisis, financial distress at certain nonbank financial companies contributed to “a broad seizing up of financial markets,” according to the council.

Under the proposed rule, traders’ bonuses could see a cut if they are paid based on revenue from fees, commissions, bid/ask spreads and not the appreciation or profit from their hedged positions.

Frank Keating, president of the American Bankers Association, said he feared the “complexity” of the rule will require bank employees whose sole jobs are to comply with the rule, further inhibiting “U.S. banks’ ability to serve customers and compete internationally.”

http://abcnews.go.com/blogs/business/2011/10/volcker-rule-unveiled-may-slash-wall-street-bonuses