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Thursday, April 19, 2012

Banks Find Way around Volcker Rule

“The path to gaming the Volcker Rule has always been clear: Banks will shut down anything with the word “proprietary” on the door and simply move the activities down the hall. To look as if they were ready to comply with the Volcker Rule, the part of the Dodd-Frank Act that aims to prevent banks from gambling on their own account with money that taxpayers insure, financial firms quickly spun off or shut down their hedge funds, private equity firms and proprietary trading desks. But the suspicious-minded among us wonder whether it was all that simple.” (New York Times)

Surprise, surprise.

FEE Timely Classic
“The Volcker Rule” by Warren C. Gibson