One of the ways this financial "opportunity to learn" effects us is to provide tougher restraints on big banks, so what about the little guy?
The Washington Post states that Paul Volcker's "plan restricts banks from making speculative investments that do not benefit their customers." Volcker, a legendary former Federal Reserve chairman, goes on to say he believes large institutions whose primary purpose is to service consumers, individuals, businesses and governments, "ought to be the core of the credit and financial system. Those institutions should not engage in highly risky entrepreneurial activity."
So, what does that mean for the mortgage bankers?
Lenders are saying "small mortgage bankers could be put out of business as it could cost too much money to decipher the disclosure regulations alone". Dwight Smith in an article from Washington Reuters says, “It calls for some very precise management of that business and some very detailed record-keeping,” said Smith. “It becomes very cumbersome.”
So does that mean large banking institutions are going to monopolize the financial markets?