Prop trading isn't a big deal

• Benanke vote questionable; missing key Democratic support. Market would increase inflation expectations if he's not reelected
• Obama: "American people will not be served by a financial system comprised of just a few massive firms". Planning to ban proprietary trading, divest internal hedge funds. Banks would more prop trading into asset management
• Top 4 lenders hold 35% of deposits; up from 5% in 1998
• Flow business: bank as a counter party to clients
• Prop trading: 1.4% of BNP Paribas, 4.3% at DB, CS
• UC Rusal finally priced on HK Exchange
• Inconsistency: want banks to lend, but also reduce risk