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Federal Reserve proposes loosening rules on bank investments
WASHINGTON – The Federal Reserve approved a proposal Thursday to loosen a financial-crisis era rule that prevents banks from investing in venture capital funds.
The proposal would affect the so-called “Volcker Rule," which was created after the 2008 financial meltdown. The rule bars banks from trading with government-insured deposits in an effort to prevent the kind of excesses that led to the financial crisis and Great Recession. Thursday's proposal would clarify several aspects of the rule and follows a previous loosening of the Volcker Rule last fall.
The draft rule would exempt venture capital funds from the Volcker Rule's provision that bars banks from investing in hedge or private equity funds.
The proposal was approved by the Fed's governors on a 4-1 vote, with Fed Chairman Jerome Powell supporting the change.
Fed Governor Lael Brainard opposed the proposal, arguing that it would “weaken core protections in the Volcker rule and enable banking firms again to engage in high-risk activities.”
The Fed argues that banks can already make direct investments in startup companies and that the rule change would simply allow them to do it indirectly through a venture capital fund.
Powell said Thursday that regulators have six years' experience with the Volcker Rule, and “we have learned that a simpler, clearer approach to implementing the rule makes it easier for both banks and regulators.”
During a press conference Wednesday, Powell said the changes are “consistent with safety and soundness and absolutely consistent with the spirit of the Volcker rule.”
But Brainard argued that the changes would allow banks to invest in riskier credit funds, which pool money to provide long-term loans.
“Some credit funds played a material role in the financial crisis,” Brainard said. “These funds were not transparent in their activities, misled investors, and contributed to the financial abuses Congress intended to address” with its post-crisis regulatory reforms.
The proposal was drafted jointly with four other regulatory agencies and will be open to public comment until April 1.
https://abcnews.go.com/Business/wireStory/federal-reserve-proposes-loosening-rules-bank-investments-68640781
this got walked over early morning bred after being explained meticulously.
UN agency declares global emergency over virus from China
GENEVA (AP) – The World Health Organization declared the outbreak sparked by a new virus in China that has been exported to more than a dozen countries as a global emergency Thursday after the number of cases spiked more than tenfold in a week.
The U.N. health agency defines an international emergency as an "extraordinary event" that constitutes a risk to other countries and requires a coordinated international response.
China first informed WHO about cases of the new virus in late December. To date, China has reported more than 7,800 cases including 170 deaths. Eighteen other countries have since reported cases, as scientists race to understand how exactly the virus is spreading and how severe it is.
Experts say there is significant evidence the virus is spreading among people in China and have noted with concern instances in other countries – including the United States, France, Japan, Germany, Canada and Vietnam – where there have also been isolated cases of human-to-human transmission.
Speaking to reporters in Geneva, WHO director-general Tedros Adhanom Ghebreyesus noted the worrisome spread of the virus between people outside China.
The main reason for this declaration is not because of what is happening in China but because of what is happening in other countries, he said. ""Our greatest concern is the potential for this virus to spread to countries with weaker health systems which are ill-prepared to deal with it."
"This declaration is not a vote of non-confidence in China…on the contrary, WHO continues to have the confidence in China's capacity to control the outbreak," he said.
https://mainichi.jp/english/articles/20200131/p2g/00m/0in/006000c
it's one of two things: either extend and pretend continuing or this is the way the hedgies and vc's get "relieved" of the assets they have.
most of those were never enforced and only existed on paper. They gave waivers to all the big banks on the bulk of it. BTW we never fixed any of it just kicked it down the road.
not these pricks again.
PSWD37 C-2A Greyhound off Mexican coast
spoopiest place i've ever been and that is saying something.