Banks could be allowed to continue making risky bets with their own capital, according to a...

|By:, SA News Editor

Banks could be allowed to continue making risky bets with their own capital, according to a draft version of the Volcker Rule. At issue is what counts as "hedging": The law originally defined it narrowly as trades tied to specific bets, but new language says hedging can cover bank risk on a "portfolio basis," in effect opening the door for banks to make all manner of bets on the market.