Senator Blanche Lincoln's amendment to the US Wall Street Reform Act, which would ban American banks from proprietary trading of swaps, is unlikely to figure in the final Congressional Act once it is signed into law, senior Wall Street figures have said.
Yesterday, Barney Frank, head of the Congressional panel which will seek to reconcile the two bills between both houses of Congress, poured cold water on Blanche Lincoln’s proposals for investment banks to spin off their swap-trading desks and said that a form of Paul Volcker’s proposal to ban deposit holding banks from proprietary trading...