Barry Ritholtz doesn't think the Volcker Rule will be active in a reasonable way soon. Until the rule actually is implemented according to its intentions, Ritholtz thinks the FDIC could do something to provide some measure of supervision.
What can it do? Charge the banks more for situations that increase risk, which are the size of the bank, the relative amount of off balance sheet transactions, high leverage ratios and low capital reserves.
Of course, he assumes that the FDIC could incentivize the accounting firms to actually report reality.
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