Of Special Interest
11th November 2011
Volcker rule too complicated
Paul Volcker, the person the Volcker rule was named after, has said that the rule as proposed in the 300 page mutli-regulatory authority document is too complicated.
He blames the complications on the lobbyists seeking exceptions on behalf of clients. He argues that the essence which he proposed, that banks not be allowed to use their own capital to trade on their own behalf, remains correct. The Volcker rule was incorporated as part of the Dodd Frank act and relates to US banks. Volcker proposed the rule whilst chairman of the US Federal Reserve and following the banking crisis.