Skip to comments.At Volcker Rule Deadline, a Strong Pushback From Wall St.
Posted on 02/14/2012 11:19:51 AM PST by Razzz42
Wall Street made its broadest assault yet against new regulation on Monday, taking aim at a rule that has come to define the battle over how to police banks in the aftermath of the financial crisis.
Regulators in charge of writing the Volcker Rule, which would ban banks from trading with their own money, were inundated with complaints and suggestions on Monday, the deadline to comment on a draft proposal. More than 200 letters were expected to be filed by the midnight deadline on the rule, which regulators outlined in October.
Commenters included the rules namesake, Paul A. Volcker, the former Federal Reserve chairman, who submitted a strongly worded defense of the rules intent in a letter on Monday. Others, like consumer advocates and lawmakers, criticized the draft rule for not being tough enough...
...The rules supporters argue that banks are defining market making so broadly that it could include some forms of risky proprietary trading. Holding substantial securities in a trading book for an extended period obviously assumes the character of a proprietary position, particularly if not specifically hedged, Mr. Volcker wrote in his comment letter.
Or, as Mr. Kelleher put it, Calling something market making doesnt make it so.
(Excerpt) Read more at dealbook.nytimes.com ...
Yup, erection coming in November, so it’s time to stoke up the ol’ Wall Street money machine.
Start a rule down the ol’ Federal assembly line, and at each station, someone from Wall Street will pony up a bucket-o-cash for “access” to the honorable politicians working at that station: House committee, House leadership, Senate committee, Senate leadership, party leaders, etc.
Why, come ‘bout erection time, we should have many buckets-o-cash, and not just from Wall Street neither. Why, them rules be working through all sorts o’ committees ‘bout now.
Yes sir, come January, we gonna be all tuckered out. We’ll just rest up a bit, until, oh, say ‘bout a year fore the next midterm erection.
Yup, politics is a tough business.