AFR in the News: Politico’s Morning Money Push Back: Volcker Edition

M.M. Push Back: Volcker Edition  – Ben White (Politico’s Morning Money)
November 11, 2011

“ Pro-reform groups were not, ahem, too happy about the anonymous comments from a senior banker in M.M. suggesting the Volcker Rule as drafted goes beyond what the statute intended. … John Carey, Communications Director for Americans for Financial Reform emails: ‘Hard to believe that bankers have a better idea of what Congress intended than Senators Merkley and Levin, who drafted the Volcker Rule.  Wall Street lobbyists seem to think that the impact of the rule is limited to taking the word ‘proprietary’ off traders’ business cards. But read the statute – it clearly requires regulators to limit systemic risk from banks entire trading operations. After billions of dollars in losses at UBS from proprietary trades at what was supposed to be a ‘hedging’ desk, and after the failure of MF Global, is there any doubt that high-risk trading can bring down a financial firm?’ … Better Markets spokesman Bill Swindell emails: ‘I thought Merkley and Levin should at the minimum been given their say before the anonymous banker got to open up for two graphs on why this country would be better off with less regulation and why Volcker is wrong. And that comes on top of what another anonymous source vouching for the U.S. Chamber’s event said in three graphs on Wednesday in M.M. …  ‘[T]he industry quotes on Volcker were pretty pedestrian that they could have from talking points from industry groups. On the reform side, we can put our names with our comments on policy. On Volcker, Better Markets has been out in front saying that regulators should examine a firm’s bonus pool because that shows where the money is being made or lost.’”