Letter: The new financial reform bill 3 percent rule
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Editor, Gazette-Journal:
CNBC says "Under the final version of the bill, banks will be allowed to invest up to 3 percent of their own capital in proprietary trading or a hedge fund they operate for clients.
"‘Prop’ trading, as it is often called, is when banks risk their own money to invest in financial markets. Though it has been very profitable for banks, the practice was blamed for helping to cause the 2008 financial crisis."
The problem is that large banks do not have any of their own capital to invest. All the big banks have is our money, yours and mine. If it wasn’t for the theft of our money by the Treasury, Fed, et al, they would all have gone bankrupt.
It’s a nice scam if you have the political connections to play.
Peter Courtenay Stephens
Hayes, Va.
