Bear Mountain Capital Inc.

The Volcker Rule

| March 27, 2012


A very important topic that unfortunately is not getting enough attention by the public… below some insightful commentary from the CFA Institute into the Volcker Rule and its importance to the long-term health of our financial system:

“It is not hard to see the delicate balance this rule-making situation requires. Too strict a rule and important players in the provision of market stability and liquidity are impaired, to the detriment of properly functioning markets. Too loose and the banks will exploit the flexibility to effectively conduct banned proprietary trading in the name of market making.

In our letter to the regulators on this rule, we expressed how important it is to eliminate any and all proprietary trading, particularly that disguised as market making. One can view this policy debate as the choice between trusting Wall Street to “play it straight” under vague market-making guidelines and implementing exceedingly clear and properly restrictive definitions of banned proprietary trading.

In the end, this is a very complex issue. But it also is so fundamental in its potential impact on investor protection that it deserves the awareness of both professional and average investors alike.”

(Click here to read commentary from CFA Institute)