Congressional leaders plan to hold hearings on one of the more controversial parts of the Dodd-Frank financial reform known as the Volcker Rule that prevents the nation’s big banks from practices that federal regulators say are dangerous — but which have also generated enormous profits for Wall Street, the FOX Business Network has learned.
The hearing is being planned by the House Financial Services committee and comes as the final drafts of the rule have been approved by federal regulators this week. Named after former Obama Administration economic adviser Paul Volcker, the rule generally bars banks from businesses like “proprietary trading” or using firm capital to trade securities, and vastly limits the amount of money banks can invest in hedge funds and in private equity accounts.
If you enjoy the content at iBankCoin, please follow us on Twitter
A “show trial?” Seriously?
Should we just let this kind of government interdiction pass by without investigation?
Do you realize that the Volker rule includes the plain vanilla gov’t bond market making function?
___________
Cmon, Jake. You know it’s going to be both sides of the aisle bullshitting each other. If Rubio or one of those guys is present, then I’ll tune in, but I don’t care about Barney Frank or Orrin Hatch or McCain carrying the bucket for the party establishment.
What exactly are these astute gentlemen and ladies going to be investigating? How not to read legislation before voting on it?
You tell ’em, Jake.
If a bank wants to receive Federally Insured deposits and have access to the window at the Federal Reserve, the government should just keep to itself and not get involved.
Regulations like the Volcker Rule would have made it more difficult for bankers to pursue the fine banking practices that generated such lovely profits in 2005, 2006, and 2007.
The Volcker rule hearings will result in increased Wall Street campaign contributions (or else).