The Volcker Rule was at the core of many fights last week at Davos. As we wrote, bankers couldn't agree with each other, lawmakers couldn't agree either, but still decided to band up against bankers, blah, blah.
Anyway, seems like there wasn't a lack of booze, as we initially thought, and on the last day of the WEF conference, everybody decided to give it a rest and just find somewhat of an agreement while getting trashed. The fighting was getting old, they were too hungover to continue this BS and they all had come to party after all.
The breakthrough did not come until early Saturday morning at a closed-door meeting here in the Swiss Alps. A group of the world's top banking chiefs and regulators, some nursing hangovers after a late night of party-hopping, finally started making some progress over financial reform at the World Economic Forum's annual meeting.
As the chief executive of a global bank said to me, knocking back a shot of vodka, "The numbers [about prop desks] you've heard about don't include all the investments we make that are related to our clients. Nobody's talking about that. That's a much bigger number."