TMX Technology - Razor Risk: The Volcker Rule Back to the Future
The financial crises of 2008 highlighted once again how regulatory regimes have moved in cycles over the years, allowing firms to apply regulatory arbitrage, or to take advantage of lax controls. Going back to the post-depression reforms of the ‘30s, regulators in the US and Europe recognised the need to reduce firms’ excessive risk taking, and to maintain a stable banking system as a foundation for stable and predictable economic growth. The Glass Steagall act of 1932 was the US’s attempt to
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