NEW YORK (TheStreet) -- The Financial Select Sector SPDR ETF (XLF) is nearly unchanged but the Vocker rule has been strengthened, although the vote on implementation has been postponed due to bad weather in Washington.
Keith Bliss, senior vice president of Cuttone & Company, told TheStreet's Debra Borchardt that despite being 1,000 pages long, the legislaton is awfully vague. The rule is intended to block banks from proprietary trading, or speculative trading for their own profit.
Bliss doesn't see that logic, saying banks essentially already do that when loans are issued.
Bliss added the self-compliance regulation is also kind of a "gray area" and trading desks will be required to have mission statements as part of their full disclosure.While acknowledging why the government is doing this, Bliss said it's getting a little too involved with some of its initiatives. Bliss suggested the rule will likely be implemented and then amended as time goes on. However, he concluded that there's a lot of room for interpretation between the two parties and that financial institutions are likely gearing up to challenge the new requirements. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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