Overall, The Volcker Rule is predominantly set to incur limitations on American Banks when it goes into effect on July 21, 2012. It was designed primarily to enforce limitations on the American banking industry. The main guidelines and parameters are meant to enforce limitations on what United States Banks can and cannot invest in.
Because some U.S. Banks have previously been involved in taking higher risk investments with consumer capital, some losses have been incurred that have created significant adverse affects for U.S. consumers. The Volcker Rule is designed to stop this risky investment behaviour within the banking sector of the United States.
In general Asian trading firms will be largely unaffected by these changes, unless however they are involved with any U.S. Banking investments. These guidelines and laws are specifically designed for U.S Banking firms and their investment practices. There is some discussion in the works of ensuring there is some crossover with overseas nations, but at present the main limitations are within the U.S. Banking sector. While some European nations are considering similar banking reforms, at present the staple of this law is within the U.S.
This would adversely restrict a United States banking firm from making any risky investments in Asian trading firms, but in general it does not cause any other restrictions or concerns for Asian markets. This is intended to stop high risk and junk assets from being a part of any U.S. banks portfolio. There are several banks within the United States that became insolvent and had to close or receive bailouts after such poor decisions were made by bank officials.
This would adversely restrict a United States banking firm from making any risky investments in Asian trading firms, but in general it does not cause any other restrictions or concerns for Asian markets. This is intended to stop high risk and junk assets from being a part of any U.S. banks portfolio. There are several banks within the U.S that became insolvent and had to close or receive bailouts after such poor decisions were made by bank officials. This would adversely restrict a United States banking firm from making any risky investments in Asian trading firms, but in general it does not cause any other restrictions or concerns for Asian markets. This is intended to stop high risk and junk assets from being a part of any U.S. banks portfolio. There are several banks within the United States that became insolvent and had to close or receive bailouts after such poor decisions were made by bank officials and this did cause consumers and American citizens financial losses.
The Volcker Rule affects Asian firms as much as those in America; learn how you can prepare on our web site.