Chilton drops opposition to Volcker rule as FIDC and Fed approve

|By:, SA News Editor

Not letting the poor weather affect their meetings (or perhaps they were conducted by teleconference), the FDIC and the Fed vote to approve the Volcker rule which is designed to ban prop trading by banks. The CFTC postponed its vote due to the snow.

The CFTC's Bart Chilton - previously a critic of the rule for not being tough enough - has dropped his opposition, saying the final version closes loopholes and tries to end speculative trading dressed up as hedging (we'll call it the London Whale amendment).

On the other hand, the final document is 882 pages and compliance has been delayed for a year until July 2015 ... loopholes meet trucks.

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