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Unformatted text preview: n the health of the U.S.
• Asset Backed Securities: In addition to the 5%
retention rule provided in 2010, new rules effective September 2011 now prohibit asset-backed
security originators from shorting positions on
their balance sheets they sold to the public in
the past 12 months. This new material conflict
of interest rule was in response to short positions some large investment banks took on L
Some of Colorado’s troubled community
banks were able to raise capital and repair
their balance sheets; however, six could not
and were closed by the FDIC in 2011. residential mortgage-backed securities they
originated and sold as viable investments at the
beginning of the 2008 credit lockdown.
• Proprietary Trading and the Volcker Rule: While
still a work in process, this rule would limit
most proprietary trading where banks place
bets for themselves rather than their clients. The
1999 repeal of Glass-Steagall Act made proprietary trading a profit center and removing it
now could hinder the ability of banks to recapitalize. Proponents of the rule suggest providing
government support and...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.
- Spring '13
- The Lottery