FT Alphaville Blog: Charles Dumas of Lombard Street Research on Volcker

Gordon doesn't like it, but this guy is optimistic. "The furore over bankers’ bonuses illustrates one aspect of current financial market conduct that has wide implications: the casual slippage back to “normalcy”, interpreted as business-as-usual 2007-style...The new plan is well conceived to reduce banking conflicts that the market has shown itself unable to self-regulate, and indirectly to create natural curbs on excessive remuneration..There is an obvious conflict between banks holding own-account positions in key markets where they are also the leading market-makers making prices for clients. It is not just a question of “front-running”, where a dealer positions his own account first, and then moves the price in his favour by putting through a large client transaction...."