Will the Volcker Rule Be Tough Enough?
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Dec. 9 (Bloomberg) -- When Paul Volcker first proposed aban on proprietary trading by banks in 2009, the financial andregulatory Establishment thought he’d gone, well, crazy.
They said the former Federal Reserve chairman’s idea wouldharm the economy by delaying the banks’ recovery and limitingtheir capacity to lend. Besides, the Establishment added, it’simpossible to differentiate trades made for a bank’s own profitfrom those done on behalf of clients. What was the man eventhinking?