Scott Brown comes through on FinReg bill for MA – Dems prepare to gut Volcker Rule and exempt MASS Mutual Funds…

Well I predicted this was a done deal when Sen Brown voted for cloture on FinReg. He would only have done so if the Dem leadership guaranteed the big mutual funds in Massachusetts were protected (contrary to the wailing of Allahpundit at HA), they will be:

WSJ:

…Democrats worked Wednesday on an agreement that would weaken a provision known as the Volcker Rule, which would bar banks from investing their own money in hedge funds and private-equity firms.

Under the terms of the discussions, large banks could be allowed to invest up to 3% of their capital in these funds. This is higher than a 2% threshold under consideration a few days ago. Details remain in flux.

The changes are designed to win the support of Sen. Scott Brown (R., Mass.), who had said he would vote against the overhaul if financial companies, notably the big mutual funds based in his state, weren’t allowed to make small investments in different types of funds. Sen. Christopher Dodd (D., Conn.) and Mr. Brown met Wednesday to discuss a potential deal…….

June 24, 2010. Tags: , , , , , , . Economy, Obama Administration, Politics, TARP, Taxes, Wall St.

One Comment

  1. The Old Man and the Street -modified Volcker Rule survives FinReg negotiations ~ the Good, the Bad & the Ugly… « Moderate in the Middle replied:

    […] Scott Brown R-MA got this 3% for the mutual funds in MA. I cannot wait to hear the JPMChase conference call on earnings in July to see what Jamie Dimon has to say about this. He thought he had killed the Volcker Rule at least twice. The Tall Man always comes back! DERIVATIVES: Would for the first time extend comprehensive regulation to the over-the-counter derivatives market, including the trading of the products and the companies that sell them. Would require many routine derivatives to be traded on exchanges and routed through clearinghouses. Customized swaps could still be traded over-the-counter, but they would have to be reported to central repositories so regulators could get a broader picture of what’s going on in the market. Would impose new capital, margin, reporting, record-keeping and business conduct rules on firms that deal in derivatives. […]

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