Fed's Raskin: No government backstop for banks that do prop trading - Yahoo! Finance
Banks that trade for their own accounts should not
benefit from the implicit backing of taxpayers, and Wall Street's
opposition to new rules curbing such activities is unfounded, a top
Federal Reserve official said on Monday.
Federal Reserve Governor Sarah Raskin, a former
Maryland financial regulator, said the notion that derivatives markets
enhance firms' ability to raise capital was questionable.
"I view proprietary trading as an activity of low or no
real economic value that should not be part of any banking model that
has an implicit government backstop," Raskin told students at the
Graduate School of Banking at Colorado in remarks made available in
Washington.
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