Investment banks are moving some of the traders known for taking big risks with shareholder cash into their asset management arms, giving them a shot at running their lucrative strategies with outside money to comply with new U.S. rules, the Chicago Trib reports.
U.S. banks or banks with U.S. branches or subsidiaries will be banned from gambling shareholder capital, known as proprietary trading, from July 21, in a regulatory overhaul to limit some of the risk-taking that contributed to the 2008 financial crisis. But they will still be allowed to run hedge fund strategies if they replace their own capital with third-party cash over the next two years.
JP Morgan, UBS and Citi are among those ….
Read all about it at http://www.chicagotribune.com/business/breaking/chi-banks-act-to-skirt-volcker-rule-on-highrisk-trades-20120403,0,958119.story
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