Regulators defend 300-page ‘Volcker Rule’ on risky trading – Peter Schroeder (The Hill)
January 18, 2012

“Financial regulators were caught in a partisan tug-of-war Wednesday as they defended a 300-page regulation required by the Wall Street reform law.  Republicans on the House Financial Services Committee chided regulators and said their attempt to implement the ‘Volcker Rule’ is overly complex and threatens the health of markets and the economy. Committee Chairman Spencer Bachus (R-Ala.) said the regulation would be a ‘self-inflicted wound’ on the nation’s financial system.  Democrats, meanwhile, pushed regulators to make sure the rule curbs risky activity and told them to resist calls from critics to adopt a slower pace. …Following up the regulators, industry groups and experts heaped scorn on the rule. A representative for the U.S. Chamber of Commerce told lawmakers that the Volcker Rule would make it harder for businesses to raise cash. However, a representative of the group Americans for Financial Reform argued the Volcker Rule is a vital safeguard for the financial system, ensuring that American taxpayers no longer effectively guarantee risky trading done by insured depository institutions.” Click here for more.