AFR in the News – House Democrats ask for tougher Volcker rule

House Democrats ask for tougher Volcker rule – Dave Clarke (Reuters)
November 16, 2011

“A group of House Democrats are asking regulators to start over with a proposed ban on proprietary trading by banks, arguing the current proposal has too many loopholes. In a letter to Federal Reserve Chairman Ben Bernanke released on Wednesday, a group of 17 House Democrats said the draft rule unveiled last month should be scrapped and replaced with a more simple approach. … The letter also cites recent comments from Volcker himself that the rule may be too complex. At a November 9 event on the rule, however, Volcker’s top aide, Tony Dowd, said the former Fed chairman is mostly supportive of the proposal, particularly the provision that lays responsibility for following the trading ban with senior management. Dowd said Volcker feels it is more complex than needed, only because the banking industry was successful in its efforts to have exemptions added to the law. ‘From Mr. Volcker’s standpoint I think he is hanging his hat on the strong wording of the general prohibition on prop trading and the accountability for senior management and boards of directors to implement the policy,’ he said at an event hosted by Americans for Financial Reform, which supports the Volcker rule.” Click here for more.