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Obama Sends Volcker Rule to Congress

Tom Braithwaite and Alex Barker report at ft.com that a version of the Volcker Rule proposal has been sent to congress for consideration.  Specific elements include:

1.  Banks would be banned from “purchasing or selling, or otherwise acquiring and disposing of, stocks, bonds, options, commodities, derivatives, or other financial instruments for the institution’s or company’s own trading book.

2.  Banks could still provide such trading for customer accounts.

3.  No company would be able to hold 10 per cent of US liabilities; there is already a ban on any bank holding more than 10 per cent of retail deposits.

According to the article, the proposal is facing opposition from Republicans, some Democrats, banks and some people working on G20 financial reform proposals.  The opinion that the proposals as made would never be passed into law was expressed in the article.

Personally, I think that if everyone is against the proposal we ought to look at it closely.  I would be most skeptical if everyone loved it.

Disclosure: No stocks mentioned.