And the main bits of the reforms needed more liquidity and capital, less proprietary risk-taking and better incentives should be applied firmly and consistently to all lenders.
The firm never put much capital into proprietary trading: so it missed the rewards of the bull market and then the losses in the crash.
Even two years ago, the sum looked absurd for a bank that says it doesn't risk its own capital via proprietary trading and instead follows a "client-flow model".
The sector's reputation has been damaged as a result.But there is less competititon for those managers that remain, especially as investment banks are devoting less capital to proprietary trading.
It's unclear whether Mr. Sanusi's efforts then and since, which included sacking the bosses of three more banks, bailouts on tough terms and stiffening rules on capital and proprietary trading, will ultimately stick.
Count the Absurd Ways," (March 18), which discussed how analysts threw away traditional valuation measures on new-economy stocks: An important characteristic of the new economy is the rapidly growing base of intangible forms of production capital like proprietary technologies and customer and supplier relationships.
However, these new instruments typically require the expenditure of capital for proprietary energy generators and are usually designed to be for single use, a circumstance that increases per case costs, a circumstance that begs the question of value.
The Proprietary Capital segment consists of the company's principal capital and private equity activities, including various direct and third-party private equity and merchant banking investments.
Even with the exemptions being sought, the Volcker Rule will still contain a provision that presents a formidable obstacle to the industry: a restriction on banks' ability to make speculative bets using their own capital, known as proprietary trading.
These rules threaten to erode the profitability of derivatives businesses as they make the cost of hedging clear for clients.Together with the new rules on capital, liquidity and proprietary trading, these changes will hit banks' revenue as well as their profitability.
