WASHINGTON (Reuters)—A key Senate banking committee member said on Thursday that there may be better ways to restrict banks' speculative activities than imposing an outright ban on proprietary trading and hedge fund ownership.
"There are real challenges to an outright ban," said Sen. Mark Warner (D-Va.), who is helping craft financial reform legislation. "If you don't have international agreements, there may be other ways other than an outright ban," he said in an interview.
For weeks, the banking committee has been working on legislation to overhaul U.S. financial regulation. But it was caught off guard when the White House in late January proposed a curb on banks' proprietary trading and ties to hedge funds and private equity funds.
Mr. Warner said it might be better to enhance prudential regulation and have a federal banking regulator pay attention to large financial firms that have deposits, proprietary trading, hedge fund and private equity components.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment