Articles tagged with: Volcker Rule
” ‘The Volcker Rule And Market Making In Times of Stress’ paper does not represent the official view of the Federal Reserve, and is not a Federal Reserve Report. …It is simply false to present this paper as demonstrating that the Volcker Rule has created market costs that exceed its risk reduction benefits.”
“The banks have had plenty of warning, and they’ve had a good market to sell their holdings, said Marcus Stanley, policy director for Americans for Financial Reform. They ‘want to hit the snooze button again over and over with the Fed,’ Stanley said… ‘The regulators have to be prepared to say, Time’s up.’ ”
AFR is calling on financial regulators to provide the public with more transparency on the implementation of the Volcker Rule, the historic prohibition on bank proprietary trading incorporated into the Dodd-Frank Act.
“Bonds seem to trade in smaller transaction sizes than they once did… That is perceived as a sign of illiquidity… A better indication, according to a presentation by Marcus Stanley, policy director of Americans for Financial Reform, would be total trading in the corporate market, which in fact has slightly increased since the financial crisis.”
“‘The administration can say whatever it wants about its interpretation of these trade agreements,’ said Marcus Stanley, policy director at Americans for Financial Reform, a Wall Street watchdog group. ‘The problem is, under the terms of these agreements, they are not going to be interpreting them. Private tribunals of trade lawyers are going to be interpreting them, and there are going to be plenty of openings, as this shows, to make claims that critical prudential regulations conflict with trade agreements. And eventually one of those is going to win out.'”
“Since December, Congress has twice passed measures to weaken regulations in the Dodd-Frank financial law that are intended to reduce the risk of another financial meltdown. In the last election cycle, Wall Street banks and financial interests spent over $1.2 billion on lobbying and campaign contributions, according to Americans for Financial Reform. Their spending strategy appears to be working. Just this week, the House passed further legislation that would delay by two years some key provisions of Dodd-Frank. “[Banks] want to be able to do things their way, and that’s very dangerous.” MIT economist Simon Johnson tells Bill.
Americans for Financial Reform… called the Fed action disappointing and said it “raises serious questions about regulators’ intentions to properly enforce the Volcker Rule.” “Since proprietary trading can occur through the mechanism of external funds, the delay in divestment requirements for covered funds will greatly weaken the enforcement of other crucial parts of the Volcker Rule as well,” the organization said.
FOR IMMEDIATE RELEASE
December 18, 2014
Contact: Marcus Stanley
AFR STATEMENT ON FEDERAL RESERVE DELAY OF VOLCKER RULE IMPLEMENTATION
Today, the Federal Reserve announced that it would delay the effective implementation of a crucial part of the Volcker Rule …