Nomura Securities on Banks and Brokers: Volcker Rule Comments - Mostly Against It
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19 Buy, 9 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Nomura Securities on Banks and Brokers: Volcker Rule Comments - Mostly Against It
Analyst, Glenn Schorr, said, "Volcker Rule Comments. We read the 162 public comments that were posted so far and provide our version of the Cliff Notes in this report. So far, some banks, asset managers, trust banks, venture capital firms, insurance companies, corporations, other financial institutions, and foreign governments have submitted their letters. The asset managers are worried that the Volcker Rule would hurt US markets by restricting banks’ market-making, block facilitation, and other counterparty activities and “will harm our clients.” The trust banks have some downside if the Rule was passed in current form. In their joint letter, Bank of NY (NYSE: BK), Northern Trust (Nasdaq: NTRS), and State Street (NYSE: STT) argue that the Rule could substantially limit their ability to provide certain services to their covered fund clients or asset management affiliates. With the comment period over, the regulators are now responsible to look at, listen to, and address these comments. We believe the regulators are reasonable and don’t want to significantly reduce market liquidity, increase capital costs, and create an unlevel global playing field."
Regulators Will Need To Find a Middle Ground – Final Rules May Be A Long Way Off - "Given the complexities of the Rule, an upcoming election year, and valid concerns of the potential negative impact on the U.S. markets & economic recovery, we believe we are a ways off from a final Rule. As such, we think the capital markets stocks can continue to lift with the overall markets, and as activity levels, eventually pick up."
Other companies of note: Citi (NYSE: C), Deutsche Bank (NYSE: DB), JPMorgan (NYSE: JPM), M&T Bank (NYSE: MTB), NYSE Euronext (NYSE: NYX) and American Express (NYSE: AXP)
Analyst, Glenn Schorr, said, "Volcker Rule Comments. We read the 162 public comments that were posted so far and provide our version of the Cliff Notes in this report. So far, some banks, asset managers, trust banks, venture capital firms, insurance companies, corporations, other financial institutions, and foreign governments have submitted their letters. The asset managers are worried that the Volcker Rule would hurt US markets by restricting banks’ market-making, block facilitation, and other counterparty activities and “will harm our clients.” The trust banks have some downside if the Rule was passed in current form. In their joint letter, Bank of NY (NYSE: BK), Northern Trust (Nasdaq: NTRS), and State Street (NYSE: STT) argue that the Rule could substantially limit their ability to provide certain services to their covered fund clients or asset management affiliates. With the comment period over, the regulators are now responsible to look at, listen to, and address these comments. We believe the regulators are reasonable and don’t want to significantly reduce market liquidity, increase capital costs, and create an unlevel global playing field."
Regulators Will Need To Find a Middle Ground – Final Rules May Be A Long Way Off - "Given the complexities of the Rule, an upcoming election year, and valid concerns of the potential negative impact on the U.S. markets & economic recovery, we believe we are a ways off from a final Rule. As such, we think the capital markets stocks can continue to lift with the overall markets, and as activity levels, eventually pick up."
Other companies of note: Citi (NYSE: C), Deutsche Bank (NYSE: DB), JPMorgan (NYSE: JPM), M&T Bank (NYSE: MTB), NYSE Euronext (NYSE: NYX) and American Express (NYSE: AXP)
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