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Regulation of the Proprietary Trading by Banks with Investment Instruments
[Regulace vlastních obchodů bank s investičními instrumenty]

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  • Petr Musílek

Abstract

This paper surveys the regulatory response to the global financial crisis with an emphasis on the regulation of the proprietary trading by banks with the speculative investment instruments. We discuss not only changes in the US regulation, but we also focus on the implementation of the Vickers rule in the Great Britain. The Dodd-Frank Act introduced quite promptly sensitive regulation of the proprietary trading by banks. Regulatory response to the global financial crisis changed significantly the regulatory-supervisory approach to the EU banks as well. However, the proposal new European directive on structural measures increasing the resistance of the banks has a very restrictive nature, because it surprisingly connects both Volcker and Vickers rule.

Suggested Citation

  • Petr Musílek, 2014. "Regulation of the Proprietary Trading by Banks with Investment Instruments [Regulace vlastních obchodů bank s investičními instrumenty]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(4), pages 6-16.
    • Handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:4:id:419:p:6-16
    DOI: 10.18267/j.cfuc.419
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    References listed on IDEAS

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    1. Kareken, John H, 1986. "Federal Bank Regulatory Policy: A Description and Some Observations," The Journal of Business, University of Chicago Press, vol. 59(1), pages 3-48, January.
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    More about this item

    Keywords

    Great Depression; Glass-Steagall Act; Gramm-Leach Bliley Act; Global financial crisis; Dodd-Frank Act; Volcker rule; Vickers rule; Approach of the EC; Velká hospodářská krize; Globální finanční krize; Volckerovo pravidlo; Vickersovo pravidlo; Přístup EK;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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