Rather, these reforms bear closer resemblance to the traditional U.S. banking structure concept of ring-fencing depository institution subsidiaries of bank holding companies. Most notably, under both Vickers and Liikanen, banking firms would be able to continue to engage in proprietary trading, but would simply be required to do it outside of the retail deposit-taking unit of the organization.
*  *  *  Ladies and gentlemen, “Can regulation contribute towards greater stability of the financial system?” My answer to this question is, “Yes, but….” Or to be more precise: “Yes, but only if we pay more attention to certain things in future.” What do I mean by that?