A few months ago, it appeared that the “Volcker Rule” would be defeated in the United States Senate. However, the version that has been adopted in the legislation currently under consideration in the Senate includes enough of the original proposal to satisfy Paul Volcker. In a Fox Business interview, Mr. Volcker comments on the current legislation and again clearly outlines his main objection to proprietary trading by banks that have implicit or explicit government backing. Read this post for a video of the interview.
Paul Volcker: Euthanasia Rather Than Life Support for Failing Non-Banks
The Financial Times has published a five part video interview with Paul Volcker who is the head of President Obama’s Economic Recovery Advisory Board. Mr. Volcker discusses his proposed “Volcker Rule” which would limit the proprietary trading activities of commercial banks. For institutions such as Goldman Sachs that may wish to avoid the ban on proprietary trading, Mr. Volcker suggests that they will have to do so without the benefits of a commercial banking license. Read this article for more information and a link to the FT Video.