Is the nearly 900-page stack of regulations prohibiting a litany of specific trading actions and dictating how traders are paid the best way to ensure a secure banking system?
This is the guiding hope behind the so-called Volcker rule, a measure meant to ban government-backed banks from speculative trading using their own money. The rule, which has been approved by three of five required government agencies, is a long-in-the-making piece of the Dodd-Frank financial-reform law of 2010, which grew from the 2008 financial crisis.
Named for the former Federal Reserve chairman and Obama administration economic advisor Paul Volcker – who famously said the last useful innovation from the banking industry was the automated teller machine – the rule is aimed at making banking boring again.
Banks are no longer allowed to invest directly in hedge funds or private-equity firms, and all trading by financial institutions will now be restricted to their role as middlemen between clients.
At least, that’sRead More »from Is the 900-Page Volcker Rule Too Much and Too Late?
Chris Arnade was a trader on Wall Street for 20 years. He had a secure spot on a foreign exchange desk at one of the biggest financial institutions in the world. Yet after two decades on Wall Street he quit his job and began spending much of his time in an area of the South Bronx where the average household income is just $16,000 per year.
“I effectually became disillusioned with Wall Street following the financial crisis,” says Arnade. “As a way to try to find something to fill in the gap I started walking around New York with my camera talking to [and photographing] people.”
His photography led him to Hunts Point, one of the poorest and most violent neighborhoods in New York.
“I started really talking to the addicts and the prostitutes there and I felt like their story needed to be heard, and I’ve focused my last three years on doing just that," he tells The Daily Ticker's Lauren Lyster.
Related: Income Stats SuggestRead More »from Why Chris Arnade Quit His High-Paying Wall Street Job to Photograph Extreme Poverty and Addiction
The rollout of the Affordable Care Act, aka Obamacare, was a "debacle" and President Obama has taken heat for repeatedly telling Americans "if you like your plan you can keep it."
That claim turned out to be false and the president's poll numbers tumbled. But the president's other big claim -- about "bending the cost curve" -- is turning out better than even one of the act's biggest supporters would've guessed.
"The cost story is better than I expected," says Peter Orszag, former director of the Congressional Budget Office and director of the Office of Management and Budget during President Obama's first term.
"At time the legislation passed, the conventional wisdom said 'this thing solves coverage but does nothing on costs,'" he recalls. "The experience since suggests the coverage part was a little rockier than people expected but the cost story turned out much better than anyone could have anticipated at the time."
Related: Obamacare's Unintended Losers
Orszag, currently vice chairmanRead More »from Obamacare Working Even Better Than Peter Orszag Expected
"The Daily Ticker" covers the most important business stories of the day -- the economy, investing, corporate leadership and politics. "The Daily Ticker" picks up where Tech Ticker left off and is hosted by Aaron Task, Lauren Lyster and Henry Blodget. Often serious, sometimes irreverent and always interesting, "The Daily Ticker" gives viewers a unique take on the business world's most crucial stories.