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Overnight Open Thread

95
Gus5/12/2012 6:27:05 am PDT

re: #93 ggt

The article posted yesterday said that the financial transactions would not be allowed under the Volker Rule (sp?) —so this was old stuff—no?

They describe the loophole:

The loophole is known as portfolio hedging, a strategy that essentially allows banks to view an investment portfolio as a whole and take actions to offset the risks of the entire portfolio. That contrasts with the traditional definition of hedging, which matches an individual security or trading position with an inversely related investment — so when one goes up, the other goes down.