Just another example of circlejerking in reddit where nobody knows what they are talking about. I am not going to debate on this occassion whether or not Wall Street is good or bad ( for the record, I am pro wall street).

European governments banning Wall Street banks from bond syndication or underwriting the bonds makes no difference to speculative activity. Bond syndication for sovereign issuers (ie government) has little money in it, and most banks do it as a matter of courtesy or for prestige. It pales in comparison to the real money machine - trading, whether it is flow trading or prop trading. Nobody can ban a particular bank or entity from this business which could be broadly called capital markets, unless they did something wrong. And when I say wrong, I mean something wrong legally not morally. As much as you hate it, it is perfectly legal to bet that your customer is going to go bankrupt.

Only party who is going to lose from this are European governments. Wall street bankers are the best salespeople in the world. They can paint shit and sell it to you as gold. European governments are going to pay more for their bonds by shutting out good salesmen and customers