Fed does end run on Glass Steagall
Article Abstract:
The Federal Reserve Board is helping the banking industry to avoid the Glass Steagall Act through liberal interpretations of the law. Both the regulators and the banking industry want reform so that the industry will be more competitive with giant German and Japanese banking concerns. The law makes it difficult for banks to engage in the investment business. The private sector and the regulators have, however, found a loophole in Section 20 of Glass-Steagall which states that any investment banking activity which a commercial bank could engage in could be done by the subsidiary without being classified as the portion of its activity devoted to investment banking.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Will euro's heat make U.S. firms wilt?
Article Abstract:
The introduction of a single European currency, the euro, on Jan 1, 1999 will change the practice of US and European commercial law and adversely affect US law firms. The American dollar will lose its worldwide primacy as a reserve currency. The banking and securities industries will become more tightly consolidated, reducing the number of available clients. The euro will facilitate and stimulate investment in Europe. Europe will become a financial center to rival or surpass New York, NY. US law will lose its status as an international legal standard and the demand for US attorneys will sharply decline.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Blame managers, not derivatives
Article Abstract:
More regulation of firms involved in derivatives trading is not needed despite the well-publicized debacles involving Orange County, CA, Metallgesellschaft AG, and Barings PLC. From a regulatory standpoint, these cases show no risk of systemic danger and the reputations of the companies involved have already suffered enough due to the actions of their overly ambitious traders. Derivatives are a way of managing risk and most banks doing such trading do it as a way of meeting their own risk management needs. More regulation would do no good.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1996
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