According to Petrasic, this means that the regulators have been purposely vague, so that "near term and short term can be as long or short as they care to make it, depending on the circumstances."
During the comment period, "there will be a desire for as much of a bright line as possible," he said.
Petrasic went on to say that at this point, "everybody's focused on proprietary trading," since the Volcker Rule's ban on private equity and hedge fund investments, with certain exceptions, is much easier to understand.
"The proposal represents the agencies' understanding that daylight is needed for banks to be able to understand what the requirements are. At this point the regulators recognize that they are driving through fog," he said.Frank A. Mayer, III -- a partner in the Financial Services Practice Group of Pepper Hamilton LLP - said that the lengthening of the comment period and the "350 questions" asked by regulators in the prosed rules mean that "the regulators are having difficulty defining precisely in their rule making what is impactful to safety and soundness of insured depository institutions" regarding "mitigation hedging activities for customers and the financial institution." "I predict this will end up being a compliance issue at the institutional level with roughly hewn safe harbors," he said. -- Written by Philip van Doorn in Jupiter, Fla. To contact the writer, click here: Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV