Volcker Rule Archives - Page 5 of 10 - Americans for Financial Reform

AFR in the News: Politicians In Washington Are Reading Greg Smith’s Letter Too

“Echoing Volcker himself, Americans for Financial Reform said the rule is aimed ‘precisely’ at the problems Smith alleges, and should provide fighting power from a lobby movement to soften the rule. ‘It is crucial that regulators are not intimidated or overwhelmed by this well-funded effort, but instead move ahead to implement the Volcker Rule that Congress intended – a strong rule that truly changes the toxic culture of proprietary trading,’ the group said in a statement. ‘Smith’s statement today, along with the mountains of evidence from the financial crisis, demonstrates yet again how much we need a Volcker Rule that works.’”

AFR in the News: Reform groups use Goldman critique to push for tougher rules

“Advocates for tough implementation of financial reform are saying that a head-turning op-ed from a former employee of Goldman Sachs proves the need for strict rules on the financial sector. In a blistering piece published Wednesday by The New York Times, Greg Smith announced his resignation as an executive director at the firm, while offering a lengthy takedown of what it has become. He argued that under current leadership, Goldman had placed its own profit-hunting ahead of the well-being of its clients, who he said were called ‘muppets’ behind closed doors. …Americans for Financial Reform issued a statement saying Smith had ‘laid bare’ problems that ‘remain pervasive at our largest banks.’ The proper prescription? Tough implementation of the ‘Volcker Rule.’”

AFR Press Statement: Resignation of Goldman Sachs executive director Greg Smith Illustrates Need for Volcker Rule

The resignation of Goldman Sachs executive director Greg Smith and the striking op-ed he wrote in today’s NY Times reveal once again that the problems laid bare in the 2010 Congressional hearings on proprietary trading remain pervasive at our largest banks. Congress passed the Volcker Rule as a specific response to these issues. Indeed, the Volcker Rule – which reorients banking culture to serving customers by banning proprietary trading and the conflicts of interest it creates – is aimed at precisely the problems Mr. Smith describes at Goldman Sachs.

AFR in the News: Not What Paul Volcker Had in Mind

“The Volcker rule, a crucial provision of the Dodd-Frank financial reform law, is supposed to stop banks from doing the sort of risky trading that was one of the big causes of the financial meltdown. The banks hate the rule because less speculation means less profit and lower bonuses for traders and bank executives. …Some advocates also warn that the regulations could still be read as allowing proprietary trading that is longer term in nature, including high-risk arbitrage trades that attempt to profit on price differences among similar assets.”

This Week in Wall Street Reform

Click here to view this week’s highlights and lowlights in Wall Street Reform – February 25, 2012 – March 2, 2012.

This Week in Wall Street Reform

Click here to view this week’s highlights and lowlights in Wall Street Reform – February 18, 2012 – February 24, 2012.

AFR in the News: Opening Up the Fed

“Fed board members and staff members apparently met with JPMorgan Chase 16 times, Bank of America 10 times, Goldman Sachs nine times, Barclays seven times and Morgan Stanley seven times (as depicted in a chart that accompanies the Wall Street Journal article). How many meetings does a single company need on one specific issue? How many would you get? For example, Americans for Financial Reform, an organization that describes itself as ‘fighting for a banking and financial system based on accountability, fairness and security,’ met with senior Federal Reserve officials only three times on the Volcker Rule.”

This Week in Wall Street Reform

Click here to view this week’s highlights and lowlights in Wall Street Reform – February 11, 2012 – February 17, 2012.

AFR in the News: Comments Flood In on Volcker Rule

The so-called Volcker Rule has broken the record for attracting the most comment letters submitted on any Dodd-Frank proposal. Regulators have received a whopping 17,000-plus comments on the proposal, a Federal Reserve spokeswoman said. …Behind this deluge is a partnership of two consumer advocacy groups that have been active in pushing back against the banks during the Dodd-Frank rule-writing process. Public Citizen and Americans for Financial Reform used email lists and social media such as Twitter and Facebook to recruit members and others to submit comments on the Volcker Rule.

AFR in the News: The Volcker Rule’s Unusual Critics

“What does Goldman Sachs have in common with Red Lobster and Macy’s? They all loathe the Volcker Rule. …An array of supporters of the proposed rule, including Mr. Volcker himself, pushed back against the escalating rhetoric. ‘This criticism is deeply misguided,’ Americans for Financial Reform, a nonprofit group that favors Wall Street regulation, said in a comment letter. The group said that too much of a good thing, or ‘excessive market liquidity,’ drove the financial system to the brink of collapse in 2008.”