OCC Will Start the Process of Amending the Volcker Rule
OCC moves to amend the Volcker Rule
The OCC (Office of the Comptroller of the Currency) will start the process of amending the Volcker Rule this week. The Volcker Rule prohibits banks (XLF) from engaging in proprietary trading or investing in hedge funds and private equity funds speculating with their own capital. The OCC will formally start the process of seeking public comment from banks (JPM) (BAC) and others on how the rule is working.
More bad news for Wells Fargo
In a regulatory filing, Wells Fargo (WFC) said that its review of potentially unauthorized accounts could show a substantial increase. Wells Fargo previously estimated 2.1 million unauthorized accounts. The bank has expanded its investigation to cover accounts opened from 2011 to mid-2015. The bank is also under investigation by the Consumer Financial Protection Bureau to assess whether the bank’s customers were harmed by the practice of freezing or closing unauthorized accounts.
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Berkshire Hathaway’s profit fell
Berkshire Hathaway’s (BRK.B) 2Q17 profit fell 15% year-over-year. A lower profit reflects lower investment gains and a loss from insurance underwriting. The company’s net income fell to $4.26 billion from $5 billion in 2Q16. Its operating profit fell 11% to $4.12 billion from $4.61 billion. Its lower profit was mainly due to higher payouts for claims at Geico and losses due to its $10 billion underwriting agreement with AIG.