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"We see some risks to our financial system" from the Volcker Rule, says Manuel Medina-Mora,...

Sunday, February 26, 2012, 8:55 AM ET
"We see some risks to our financial system" from the Volcker Rule, says Manuel Medina-Mora, Citigroup's head of global consumer banking. The rule will likely have an "averse" impact on the liquidity of sovereign securities, which will curb the ability of banks to manage their own risks. He suggests foreign sovereign debt be exempt from the prop trading ban.

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This news story has 8 comments:

tigersam Comments (1711)

Same thing people were saying when smoking ban came in the restaurants. Everybody was saying restaurants will go out of business. Now a days I can not get even reservation on Friday night. Lets bring back smoking and that way at least I will get a reservation.

26 Feb 2012, 09:09 AM Reply Like

Leftfield Comments (3481)

No doubt Washington is imposing policies that are generally dumb or worse. But, unless policies consist entirely of taxpayers perpetually guaranteeing bonuses on Wall Street, a suit from Citicorp will always object.

26 Feb 2012, 09:11 AM Reply Like

PalmDesertRat Comments (1767)

Reducing liquidity in sovereign securities should provide an opportunity to the smartest. It's when nobody has an edge is when things get tough. This is good for people like GS and Blackrock and Chase. I don't know if Citi can compete.

26 Feb 2012, 10:03 AM Reply Like

sr1977 Comments (318)

How ironic that they want to exempt the latest incarnations of the financial weapons of mass destruction from the Volker rule.

26 Feb 2012, 11:29 AM Reply Like

wyostocks Comments (5372)

What he say's is probably true. However, who can ever trust the bankers again to do the right thing.

26 Feb 2012, 12:11 PM Reply Like

JohnLocke Comments (381)

I have to put it into terms my simple mind can understand...

Citibank wants to be able to continue to gamble with their customers money by speculation in sovereign debt markets. Then when they get burned cry to big to fail and get a hand out at the taxpayers expense... got it

26 Feb 2012, 12:12 PM Reply Like

Jellybowl Comments (3)

I am always looking for the big one.

26 Feb 2012, 02:06 PM Reply Like

apwwest59 Comments (49)

If you replace "our financial system" with "my yearly bonus" this is a strikingly honest statement.

26 Feb 2012, 09:30 PM Reply Like

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