The United States Federal Reserve, which is charged with overseeing the financial system, is not convinced that there’s any hedge fund that could endanger the entirety of U.S. capitalism, and therefore it’s not convinced that the funds need Fed oversight.
In the bad old days before the Dodd-Frank Wall Street Reform and Consumer Protection Act, major Wall Street players oversaw a massively opaque market in derivatives contracts where Wall Street middlemen made undisclosed profits by acting as intermediaries between buyers and sellers. Here’s the story as told by The New York Times:
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Morgan Stanley is looking to spin off its quantitative proprietary trading unit. The fund, in the words of The New York Times, is run by a “mathematical whiz” and a “secretive band of traders” who “use high-speed computers to turbocharge their mathematically powered investing skills.”
They program their computers to track different data Read More
After suggesting a few weeks ago that moves by financial firms to unwind their proprietary trading operations might be a little disengenuous, Michael Lewis pushes his case further today. According to Lewis, big banks will continue to use shareholder capital to initiate trades, but — cleverly — will say that they are Read More
Another proprietary trading desk has separated from its parent bank thanks to financial reform.
As previously reported (after a fashion), it now looks as though Goldman Sachs’ Principal Strategies proprietary trading unit has found a new home with publicly traded private equity giant Kohlberg Kravis & Roberts.
The move follows the passage Read More