Český finanční a účetní časopis 2014(4):6-16 | DOI: 10.18267/j.cfuc.419

Regulation of the Proprietary Trading by Banks with Investment Instruments

Petr Musílek
Prof. Ing. Petr Musílek, Ph.D. - profesor; Katedra bankovnictví a pojišťovnictví, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <musilek@vse.cz>.

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.

Keywords: Great Depression; Glass-Steagall Act; Gramm-Leach Bliley Act; Global financial crisis; Dodd-Frank Act; Volcker rule; Vickers rule; Approach of the EC.
JEL classification: G24

Published: December 1, 2014  Show citation

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Musílek, P. (2014). Regulation of the Proprietary Trading by Banks with Investment Instruments. Czech Financial and Accounting Journal, 2014(4), 6-16. doi: 10.18267/j.cfuc.419
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