Yes, Mr. President!!

This happened when the Nobel peace winning President hinted proposed [tough] limits [if not a ban] on trading activities by FHCs.

A Brief: FHC [Financial Holding Companies] are Banks designated by the US Fed Res. allowed to do a few more business than mere Banks. FHCs have an access to Fed borrowing window against which the Federal Reserve becomes a Regulator for such entities.

Last fall witnessed a few bigwie FIs in the US being designated as FHCs owing to the economic downturn to the Securities businesses [read spreading to the entire US economy = most of the world]. While these new FHCs celebrate [or otherwise] their anniversary, the Presidential office announced they might  shortly not be  trading prop + not even sponsor PE and Hedge funds = STUNTED/ NO GROWTH.

World over this is seen as a very defensive and arbit move on Government’s part to attempt cutting down of activity as against actually building a robust risk regulating mechanism.

While this happens far in the US, we in India consequently saw a 112 bps fall in the Sensex end of last week and recovering from a 100 fall to ~ 40 bps fall as this post was published, ofcourse the speculation over Jan 29 from RBI also contributed to this, leading to a lot of banking stocks falling well over 100 bps [time to buy for a long term view]

Views from Regulators get increasingly defensive not just in the US even locally, as lot actually expect interest rate hike as the Cen. Bank's answer to inflation and even graver supply side issues that we as an economy face uniquely as compared other EMs.

Follows suit is SEBI with rather futuristic plans for the Investment Management Industry each new day. These are great plans and noble thots but are viewed as ‘jaw dropping to the floor’ moves in the current scenario with the industry not even skimming the markets leave alone penetrating in terms of savings mobilizations in about 2 formal decades of existance.

Anyways, there's not too much we can do about Regulators but say YES and follow!! Adieu :( !