Matt Levine writes in the Wall Street Journal: Morgan Stanley Now Obeying Rules, Reducing Risks, Eating Cupcakes
So while of course it's possible that this is just next-level perception manipulation and I've fallen for it -- that Morgan Stanley has found a novel way to take on immense amounts of complex risk and hide it behind an army of retail brokers and a layer of cream-cheese frosting -- I think that this story is what it appears to be. Morgan Stanley seems to be de-risking by cutting back on risky activities, and responding to new regulations by obeying them.On the New Wall Street, Boring Is Better [more inside]
Critics of the Occupy Wall Street movement have complained that the protestors have no clear goals, so WE DON'T MAKE DEMANDS composed a list of 12 concrete, specific suggestions focusing on economic reform, stronger regulation, and closing loopholes.
Obama Breaks with Geithner to support "Volcker Rule" in sweeping new financial sector reform proposal. Following the counsel of highly-respected former Fed Chairman Paul Volcker in a move that would significantly weaken the role of current Treasury Secretary Tim Geithner, Obama's tough new proposals are being received by recent administration critic Robert Reich as a welcome, if overdue, policy correction. Among other things, the new proposals would effectively restore previous restrictions separating deposit and investment banks (as originally imposed by the depression-era Glass-Steagall Act), as well as imposing stiff new capital requirements, and restrictions designed to prevent banks from becoming too big to fail.